The Scope of 2020 External Audit (Incorporated Company)

When a incorporated company belongs to any of the below such as 2019 financial statement it is subject to external audit.

[1] Small-scale incorporated companies  

   As of the year end of the immediate preceeding business year (When a incorporated company belongs to three out of four below, it is excluded from audit) 

   ①  Asset: less than 12 billIon won          ②  Debt: less than 7 billion won

   ③  Sales: less than 10 billion won          ④  Employees: fewer than 100

   => It means that when a incorporated company belongs to two of the four above it is subject to external audit.

 [2] Criteria for large-scale company: Total asset or sales exceeds 50 billion won

     Regardless of the criteria for small-scale companies, when a corporation exceeds 50 billion won in asset or sales, it is subject to external audit.