This article was published on the ChosunBiz MoneyMove (MM) site at 5:24 p.m. on Oct. 23, 2025.
Major accounting firms earn more revenue from consulting (management advisory) than from their core audit work, prompting financial authorities to push for stronger related disclosures. The accounting industry agrees with the intent but says the scope of disclosure is too broad and detailed standards need to be coordinated.
On the 23rd, the accounting industry reported that among large firms Samil, Samjong and Anjin, the share of consulting in total revenue was higher than that of audit. According to an investigation by the office of Kim Hyun-jung of the National Policy Committee of the Democratic Party of Korea, Samjong's consulting share of revenue for fiscal 2024 was 49.75%, higher than audit at 32.46%.
In the same period, Anjin's consulting share of total revenue was 49.09%. That is about 1.5 times the audit sector's 30.38%. Samil (based on 2023) had a consulting share of 39.41%, surpassing audit at 35.20%. Among the Big Four, only EY Hanyoung's audit sector (45.98%) slightly exceeded its consulting sector (40.83%).
This trend also appeared in consulting-dedicated network firms that effectively use the same brand as the accounting firms. Under 2024 accounting standards, EY Hanyoung's consulting firm's revenue was 300.5 billion won, an increase of 179.7% over the past five years, the highest growth rate among the Big Four. In the same period, Anjin followed with 151.9 billion won (87%), Samil with 395.2 billion won (80.9%), and Samjong with 29.1 billion won (42.6%).
Given this situation, financial authorities have decided to improve disclosures so that network accounting firms also report these non-audit services. The regulatory measure stems from concerns that, while operating under one roof, firms may split legal entities and perform external audits and non-audit services concurrently. Authorities have expanded the definition of network accounting firms in the revised certified public accountant ethics standards implemented this year to include profit sharing and cost sharing, and sharing of quality control, business strategies and brand names.
The authorities aim to secure independence by encouraging listed companies to contract consulting work with parties other than the network firm of the auditor. Financial Supervisory Service Governor Lee Chan-jin recently met with accounting industry chief executive officers and asked them to try to prevent auditors' independence from being impaired by network accounting firms performing non-audit services related to the auditor.
The accounting industry agrees with the intent but says there is a need to coordinate specific guidelines. A representative of an accounting firm said, "There are already hundreds of audit results reported in disclosures, and it is practically difficult to disclose all large and small consulting assignments as well," adding, "It is necessary to adjust specific scopes such as who must disclose and what to disclose, for example for the top 30 conglomerates by business ranking or the top 100 companies by domestic revenue."
Some complain the regulation is excessive. A representative of another accounting firm said, "Expanding the disclosure scope is fine, but I think the priority is properly applying the various domestic and international guidelines on non-audit services, which are still confusing in practice," adding, "Accounting firms are not listed companies, but they already perform strict disclosure obligations under the Act on External Audit of Stock Companies, and continued new regulations raise concerns about a possible decline in audit quality."