Tuesday , May 30 2023

The KAI assesses "limited" financial statements for the third quarter


Korea's Aerospace Industry (KAI) received "limited" feedback from external accounting firms in its financial statements for the third quarter of this year.
Limited opinions are only presented when the scope of control is limited and there are violations of accounting standards but not "inadequate" or "refused to comment". This constraint has raised some concerns that the investment climate may be shrinking or disturbed by orders abroad as a result of a somewhat negative control opinion.

According to the Financial Supervisory Authority (KFDA) and the Korean Stock Exchange, the KAI received a limited opinion on HanYoung KC's external auditor's financial statements for the third quarter of this year.

This does not mean that there are serious problems such as a serious accounting violation or the existence of a company, but this means that certain accounting standards are not met. Hanyoung Accounting Corp. said that "we did not receive sufficient and appropriate evidence to judge whether the inventory, capital cost, capitalization of borrowing costs, etc., was appropriate. We could not determine whether the third quarter financial statements should be revised." In the case of a regular semi-annual or annual report, the "limited" opinion of the external auditor is the reason for suspending the transaction. Typically, day trading is interrupted and the management event is determined. and if a negative audit opinion is issued in the case of the first and third quarterly reports prepared by the relevant company, it does not fall within the grounds for the suspension of the trading of the shares.

The problem is the reliability of the stock in which overseas orders are important. In the case of orders abroad, the credibility of the company is an important point of reference. I'm worried about investors' stress here. In particular, the KAI has undergone trade-offs and prosecutors are investigated by prosecutors for suspected illicit activities relating to money laundering last year and have been disturbed by mismanagement such as misrepresentation.

In response, KAI said: "In the process of upgrading the business resource management system this year, some information could not be verified and the audit firm received limited views." Will do it. "

Reporter Moon Byung-Ki [email protected]

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