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[Apha Biz=(Chicago) Reporter Paul Lee] Authorities have taken "audit designation" measures against Hancom Frontis, which inflated sales by 1.9 billion won by only cutting tax bills and not receiving goods and others. Executives involved in the matter recommended dismissal and notified the prosecution.
At the 16th meeting on Sept. 20, the Securities and Futures Commission under the Financial Services Commission approved a three-year auditor designation measure for Hancom Frontis, which prepared and disclosed financial statements in violation of accounting standards.
The auditor designation measure is to be audited by an accounting firm designated by the authorities to ensure a more transparent and fair accounting audit in the event of an accounting fraud.
Executives involved in the work were advised to be dismissed. The executive in question has already resigned, but dismissal could result in disadvantages in severance pay and other benefits.
The Securities and Futures Commission then notified the prosecution of the company, its CEO and executives on charges of accounting fraud and took corrective action.
Alphabiz Reporter Paul Lee(hoondork1977@alphabiz.co.kr)
