South Korea’s Financial Services Commission (FSC) outlined plans at an accounting industry meeting to strengthen scrutiny of companies at heightened risk of inadequate audits, including those whose audit hours have fallen sharply from the previous year. Financial statement reviews will begin by the end of 2026 and expand in 2027. Sustained declines in audit fees have raised concerns about reduced audit hours and weaker audit quality. Experts attribute the fee pressure partly to increased competition and demands for reductions linked to artificial intelligence (AI). The supervisory focus aligns with July 2026 proposals to strengthen audit quality incentives and require independent oversight committees at large accounting firms. The minimum number of successful candidates for the 2027 certified public accountant (CPA) examination is also under review. Many successful candidates remain unable to secure practical training placements despite measures introduced in May 2026 to expand training institutions and allocate placements. The assessment takes account of staffing demand, AI’s impact on the profession and predictability for examination candidates. The CPA Qualification and Disciplinary Committee is scheduled to finalize the number at the end of November 2026.
South Korea’s Financial Services Commission plans closer scrutiny of sharp audit hour cuts and reviews 2027 accountant intake
South Korea’s Financial Services Commission plans closer scrutiny of companies with sharp declines in audit hours amid concerns about audit quality. Financial statement reviews will start by the end of 2026 and expand in 2027. The regulator is also reviewing the minimum number of successful candidates for the 2027 certified public accountant examination, with a decision scheduled for the end of November 2026.