Kim Beom-jun, a professor in the Department of Accounting at The Catholic University of Korea, said on the 18th that to enhance accounting transparency in nonprofit corporations and the public sector, accounting audits should be made mandatory for subsidies and commissioned administrative tasks above a certain scale, and internal control and review systems should be established.
Kim made the remarks at the 2025 Accounting Trend Symposium, hosted by ChosunBiz and sponsored by The Korean Institute of Certified Public Accountants, held at the Westin Josun Hotel in Jung District, Seoul, under the theme of the need to enact a basic accounting law to enhance accounting transparency across society.
He cited the spread of group accounts at internet banks as an example and argued that society-wide demand for accounting transparency is growing. Kim explained, When you use a group account, deposits and withdrawals are shared in real time. It is convenient, but it also reflects the desire of people who want to confirm whether their money is being used properly.
He said, There is a trend of expanding external audits to include the periodic designation system for public corporations, multiunit buildings, subsidies for local governments, private schools, and apartments, adding, Nonprofit organizations often have a mismatch between those who pay and the beneficiaries of services, so the demand for accounting transparency is high.
Kim underscored the need to enhance accounting transparency in the private sector by citing overseas cases. He emphasized, In most advanced countries, including the United States, the United Kingdom, Canada, Australia, and Japan, accounting audits are mandatory for nonprofit corporations above a certain scale or when receiving subsidies from the government. It is such a given that asking why the system exists is nonsense.
He argued that to improve audit quality, auditors' expertise and independence must be ensured. Kim said, Having experience and knowledge in accounting and taxation is a completely different realm from performing an accounting audit, adding, Those who lack the expertise and experience related to accounting audits should not participate in external audit engagements.
He continued, Accounting audits must secure independence to ensure the reliability of the audit results, and said, When performing accounting audit work for nonprofit corporations and the public sector, strict independence standards with the audited entities must be observed. He added, For the supervisory body overseeing accounting audits to perform review work well, it needs to establish a review system composed of accounting audit experts to rigorously manage audit quality.