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Laws of the Republic of Korea |
1
ENFORCEMENT DECREE OF THE CERTIFIED PUBLIC ACCOUNTANT ACT
Wholly Amended by Presidential Decree No. 15309, Mar. 22, 1997 Amended by Presidential Decree No. 15748, Apr. 1, 1998 Presidential Decree No. 16846, Jun. 23, 2000
Presidential Decree No. 17238, Jun. 18, 2001
Presidential Decree No. 18312, Mar. 17, 2004
Presidential Decree No. 18352, Apr. 1, 2004
Presidential Decree No. 19374, Mar. 10, 2006
Presidential Decree No. 19513, Jun. 12, 2006
Presidential Decree No. 19880, Feb. 12, 2007
Presidential Decree No. 19958, Mar. 27, 2007
Presidential Decree No. 20653, Feb. 29, 2008
CHAPTER GENERAL PROVISIONS
Article 1 (Purpose)
The purpose of this Decree is to provide for the matters delegated by
the Certified Public Accountant Act and the matters necessary
for the
enforcement thereof.
Article 2 (Subjects, Method, etc. of Certified Public Accountants Exami-
nation)
(1) Subjects and distribution of marks by subjects of the certified public
accountants examination (hereinafter referred to as the
"examination")
provided for in Article 5 (2) of the Certified Public Accountant Act
(hereinafter referred to as the "Act") shall
be as set out in the attached
Tables 1 and 2.
(2) While the preliminary examination shall be a multiple-choice test,
the secondary examination shall be an essay test.
(3) English
subject among those of the preliminary examination as referred
ENFORCEMENT DECREE OF THE CERTIFIED PUBLIC ACCOUNTANT ACT
2
to in paragraph (1) shall be substituted by the record of an English test
conducted by another examination agency (hereinafter referred
to as the
"English test") on or after the 1st of January of the year whereto belongs
the date when two years have passed retroactively
from the announcement
date of the examination.
Article 2-2 (Qualifications for Taking Examination)
(1) The kinds of subjects (hereafter in this Article referred to as the
"regular
subjects") and the number of credits as provided for in Article
5 (4) of the Act shall be as follows:
1. Accounting and tax-related subjects: 12 credits;
2. Business administration: 9 credits; and
3. Economics: 3 credits.
(2) In the case of completing the required course at schools under Article
5 (3) 1 of the Act, the standards
for recognizing credits under paragraph
(4) of the said Article shall follow the school regulations and in other
cases, the Act
on Recognition of Credits, etc. or the Act on the Acquisition
of Academic Degrees through Self-Education: Provided, That the exami-
nation board as referred to in Article 6 may, subject to its deliberation,
recognize the credits of a subject not set as a major
of a degree course
for the relevant regular subject if the contents of the subject are related
to the field of the relevant regular
subject, or may decide not to recognize
the credits of a subject set as a major of a degree course for the relevant
regular subject
if it is evident that the contents of the subject are not
related to the field of the relevant regular subject.
(3) Qualifications for taking examination under Article 5 (4) of the Act
shall be proved by a certificate of acquiring credits of
the regular subjects
issued by the head of a school or credit-recognition agency from which
the credits are earned: Provided, That
if a certificate of acquiring credits
of the regular subjects can not be submitted for any inevitable grounds,
the examination
board as referred to in Article 6 may allow its substitution
ENFORCEMENT DECREE OF THE CERTIFIED PUBLIC ACCOUNTANT ACT
3
by the certificate of records of the regular subjects, subject to its deliberation.
(4) Anyone who intends to apply for the examination
shall submit the
certificate as referred to in paragraph (3) along with a written application
as prescribed by Ordinance of the
Prime Minister.
applying the marks obtained by it; and although the number of successful
candidates is expected to exceed the estimated number of
candidates to
be selected, due to candidates who score the same marks, successful candi-
dates shall include those who score the
same marks. In this case, their
marks shall be calculated down to the secondary decimal place. 1. An institution in which the Government invests in accordance with
the Framework Act on the Management of Government-Invested Institu-
tions (hereinafter referred to as a "government-invested institution");
2. A stock-listed corporation under the Securities and Exchange Act (here-
inafter referred to as a "stock-listed corporation");
and
3. The Credit Guarantee Fund under the Credit Guarantee Fund Act
and the Korea Technology Credit Guarantee Fund under the Korea
Technology Credit Guarantee Fund Act (hereinafter referred to as
the "guarantee agency").
(2) The term "particular level determined by the Presidential Decree"
in Article 6 (1) 3 of the Act means any level of the following
subparagraphs:
1. A deputy, in case of a banking institution under Article 2 of the Banking
Act, a government-invested institution, or a guarantee
agency; and
2. The head of section or equivalent thereto, in case of a stock-listed
corporation.
(3) The term "fields relating to accounting" in Article 6 (1) 3 of the Act
means the field whose main work is to prepare financial
statements.
(4) The term "person as prescribed by the Presidential Decree" in Article
6 (1) 5 of the Act means a person, holding
the office of deputy or higher
at the Financial Supervisory Service established under the Act on the
Establishment, etc. of Financial
Services Commission (hereinafter referred
to as the "Financial Supervisory Service"), with experiences in any of the
following
services for the period of not less than five years:
1. Services relating to external audits under the Act on External Audit
of Stock Companies; and
2. Services relating to finance management of a stock-listed corporation
or a corporation registered at the Financial Services Commission
under
the Securities and Exchange Act (hereinafter referred to as the
"registered corporation").
(5) In computing the period of services in such fields as specified in each
subparagraph of Article 6 (1) of the Act, for a person
who has experience
in the field concerned at two institutions or more, the periods of services
in each institution shall be aggregated.
Article 5 (Administration and Public Notice of Examination)
(1) The examination shall be held at least once every year.
(2) The
Financial Services Commission shall give public notice with regard
to the contents of the following subparagraphs in daily newspapers,
etc.
not later than 30 days prior to the date of examination: Provided, That
if changes in public notice are necessary for unavoidable
causes, the public
notice with regard to such changes shall be given in daily newspapers,
etc. not later than 10 days prior to
the date of examination:
1. Qualifications for taking the examination;
2. Method, date and time of the examination;
3. Subjects of the examination;
4. Date and time and method of notification of successful candidates;
5. Places where application forms for examination are available and re-
ceived, and time-limit of application for examination; and
6. Other necessary matters relating to administration of the examination.
Article 6 (Examination Board)
(1) The examination board shall be established in the Financial Services
Commission for the administration of the examination (hereafter
referred
to in this Article as the "examination board").
(2) The examination board shall be composed of a chairman, examiners
whom the chairman appoints or designates, at each occasion,
from among
those who have vast knowledge and practical experience in each subject
of examination.
to as the "Governor of the Financial Supervisory Service") shall be the
chairman. 1. Matters relating to eligibility to attempt the examination;
2. Matters relating to setting questions for the examination;
3. Matters relating to method of the examination;
4. Matters relating to the determination of successful candidates; and
5. Other matters referred to by the Chairman of the Financial Services
Commission or the chairman.
(5) The chairman shall exercise powers over general matters of the examina-
tion board, represent it, call and preside over its
meetings.
(6) Where the chairman is incapable of carrying out his functions due
to unavoidable causes, an examiner designated by the chairman
shall act
for him: Provided, That if the chairman can not designate his substitute
because of the occurrences of unavoidable causes,
an examiner designated
by the Chairman of the Financial Services Commission shall act for the
chairman.
(7) Any decision at meetings of the examination board shall be made
with the attendance of a majority of all members and with concurrent
vote of a majority of those present.
(8) Matters necessary for the operation of the examination board other
than those provided for in paragraphs (1) through (7) shall
be deter mined
by the chairman through resolutions of the examination board.
Article 7 (Fees for Attempting Examination)
(1) A person who wishes to attempt the examination shall pay the Financial
Supervisory Service the amount set out in Ordinance of
the Prime Minister
as fees in cash or by means of electronic currency, electronic settlement,
etc. using information and communications
networks: Provided, That the
Financial Services Commission may allow him to pay such fees by means
of electronic currency, electronic
settlement, etc. using information and
communications networks.
(2) Fees referred to in paragraph (1) shall not be refunded even where
a candidate does not sit at the examination.
Article 8 (Public Notice of Successful Candidates and Delivery of Passing
Certificates)
The Financial Services Commission, where successful candidates are de-
termined, shall give public notice thereon in the Gazette
and deliver passing
certificates to candidates who pass the secondary examination.
Article 9 (Sanctions against Cheating)
Where a candidate cheats in the examination or contravenes rules and
regulations relating to the examination, the Financial Services
Commission
shall stop his taking the examination concerned or have it null and void,
and take measures to suspend his eligibility
for attempting the examination
for a period of five years from the date on which such measures are taken.
Article 9-2 (Certified Public Accountant Qualification System Delibera-
tion Committee)
(1) The Certified Public Accountant Qualification System Deliberation
Committee (hereafter referred to in this Article as the "System
Deliberation
Committee") under Article 6-2 of the Act shall be composed of seven members
including a chairman.
(2) The Vice Chairman of the Financial Services Commission shall be the
chairman of the System Deliberation Committee (hereafter
referred to in
this Article as the "chairman"), and its members shall be commissioned
by the Financial Services Commission from
among the following persons:
1. Two persons from among the public officials of Grade or public officials
in general service belonging to the Senior Civil Service
of the Financial
Services Commission;
2. Deleted; 3. One person recommended by the president of the Korean Institute
of Certified Public Accountants (hereinafter referred to as the
"Institute
of Certified Public Accountants") under Article 41 of the Act;
4. One person recommended by the head of a corporation or organization
which is entrusted by the Financial Services Commission with
the busi-
ness of setting or amendment of accounting standards under Article
ENFORCEMENT DECREE OF THE CERTIFIED PUBLIC ACCOUNTANT
ACT
8
13 (4) of the Act on External Audit of Stock Companies and Article
7-2 of the Enforcement Decree of the same Act;
5. One person recommended by a citizens' organization (referring to a
nonprofit non-governmental organization under Article 2 of
the Assis-
tance for Nonprofit, Non-Governmental Organizations Act); and
6. One civil expert having abundant knowledge and experience in account-
ing system.
(3) The chairman shall represent the System Deliberation Committee,
exercise the overall control of its affairs, and call and preside
over its
meeting.
(4) If the chairman is unable to perform his duties due to inevitable reasons,
a member designated by the chairman shall act for
the chairman.
(5) A meeting of the System Deliberation Committee shall take decision
with the attendance of a majority of the total
members and with concurrent
vote of a majority of those present.
(6) The terms of office for members referred to in paragraph (2) 3 through
6 shall be three years and renewable.
(7) Other than the matters as provided in paragraphs (1) through (6),
matters necessary for the operation, etc. of the System Deliberation
Commit-
tee shall be determined by the chairman subject to a resolution by the
System Deliberation Committee.
[This Article Newly Inserted by Presidential Decree No. 16846, Jun. 23, 2000]
CHAPTER TRAINING, REGISTRATION,
ETC.
Article 10 (Registration)
(1) A person who wishes to get registered as a certified public accountant
in accordance with Article 7 (1) of the Act shall submit
to the Financial
Services Commission a registration form accompanied by the following docu-
ments:
1. A copy of passing certificate provided for in Article 8; and
2. A statement certifying the completion of training, prescribed in Article
12, save for those who fall under each subparagraph of
Article 6 (1)
of the Act.
(2) Where the Financial Services Commission receives an application for
registration prescribed in paragraph (1), it shall have
the applicant regis-
tered on certified public accountants register without delay and deliver
ENFORCEMENT DECREE OF THE CERTIFIED
PUBLIC ACCOUNTANT ACT
9
the registration certificate to the applicant.
(1) Pursuant to Article 7 (4) of the Act, a person who has been registered
as a certified public accountant shall have his registration
renewed every
five years.
(1) Pursuant to Article 7 (1) of the Act, in-service training shall be ad-
ministered by any of the following institutions for one
year or more:
1. An accounting corporation;
1-2. An audit team under Article 3 (1) 3 of the Act on External Audit
of Stock Companies;
2. The Institute of Certified Public Accountants;
3. The Financial Supervisory Service (limited to a division or section
taking charge of services relating to external auditing under
the Act
on External Audit of Stock Companies, or general functions of finance
management of stock-listed or registered corporations);
and
4. Other institutions determined by the Financial Services Commission,
through recommendation by the Institute of Certified Public
Accoun-
tants.
(2) Deleted.
ENFORCEMENT DECREE OF THE CERTIFIED PUBLIC ACCOUNTANT ACT
10
(4) The Institute of Certified Public Accountants shall have responsibility
to administer the matters relating to in-service training
and determine
the details, methods, and procedures of in-service training, the aggregate
computation of in-service training periods,
and other necessary matters
with approval from the Financial Services Commission.
1. Purchase of insurance; and
2. Joining in the mutual benefits projects operated by the Institute of
Certified Public Accountants so as to cover liability for
compensation
under Article 19 of the Act.
(2) A certified public accountant who has purchased insurance in accord-
ance with paragraph (1) shall take measures to cover liability
for compen-
sation specified in any subparagraphs of paragraph (1) by the date of
payment in case where the compensation concerned
has been paid for
reasons of occurrences of grounds for compensation, or by the expiry of
insurance period in case where the period
of insurance has been elapsed,
and shall file reports with the Institute of Certified Public Accountants
within 15 days from the
date on which such measures are taken.
(3) Where the Institute of Certified Public Accountants disburses the com-
pensation owed
by a certified public account for his liability for compensa-
ENFORCEMENT DECREE OF THE CERTIFIED PUBLIC ACCOUNTANT ACT
11
tion from funds established by mutual benefits projects, the certified public
accountant who has subscribed to mutual benefits projects
shall pay the
sum of money accountable for the disbursement for compensation or take
measures provided for in paragraph (1) 1 to
cover liability for compensation
by the date on which the Institute of Certified Public Accountants disburses
the compensation
and file reports with the Institute of Certified Public
Accountants within 15 days from the date on which such measures are
taken.
(4) Requirements for, procedures for, repayment of payment out of funds
established by mutual benefits projects, or matters necessary
for mutual
benefits projects other than those provided for in paragraphs (1) through
(3) shall be determined by the Institute of
Certified Public Accountants.
Article 14 (Restrictions on Functions)
(1) The term "person as prescribed by the Presidential Decree" in Article
21 (1) 3 of the Act means a person falling under any of
the following
subparagraphs who has a relationship with either a certified public account-
ant or his spouse: 1. A person whose stocks or contributed shares are owned by a certified
public accountant or his spouse;
2. A person who has a credit or obligation worth not less than 30 million
won against a certified public accountant or his spouse:
Provided,
That the credit or obligation falling under any of the following items
shall be excluded:
(a) The credit directly connected with the service of the certified public
accountant pursuant to the provisions of Article 2 of
the Act;
(b) The credit, such as deposit, installment savings within the extent
of the amount protected in accordance with the
Depositor Protection
Act;
(c) The credit, such as membership, license to a facility, which has
been purchased in accordance with the standard stipulation
or at
a normal price;
(d) The credit, such as retirement pension pursuant to the Guarantee
of Workers' Retirement Benefits Act;
(e) The obligation established after supplying collateral in accordance
with the normal procedures, such as a loan secured against
house,
a loan secured against saving, etc. which have been extended by
the institutions pursuant to the provisions of Article 38
of the Act
on the Establishment, etc. of Financial Services Commission;
ENFORCEMENT DECREE OF THE CERTIFIED PUBLIC ACCOUNTANT ACT
12
(f) The obligation that has not been overdue from among the obligations
with the date of payment not longer than 2 months following
the
use of credit card pursuant to the provisions of subparagraph 3
of Article 2 of the Specialized Financial Credit Business Act;
or
(g) The credit or obligation occurred involuntarily from merger, inher-
itance or lawsuit, etc. during the period of audit;
3. A person who rents office premises to a certified public accountant
without charging rents or for such rent as is considerably
low compared
to normal transaction prices;
4. A person who continues to remunerate a certified public accountant
or to provide other special economic benefits with him for
his services
other than for what are considered as normal services by certified
public accountants; and
5. A person who has provided or committed to provide the stocks of his
own firm, bonds with warrant, convertible bonds, or stock
options to
a certified public accountant as a price for rendering the services under
Article 2 of the Act.
(2) The term "business that is prescribed by the Presidential Decree" in
Article 21 (2) 4 of the Act means the business (hereinafter
referred to
as the "business of actual inspection, etc.") of actual inspection, financial
report, and valuation of assets, capital,
and other rights (including those
not indicated in financial statements; hereinafter referred to as the "assets,
etc.") of a specific
company and any other business of presenting any opinion
on the appropriateness of the transactions of the assets, etc. and other
contracts therefor, for the purposes of selling the whole or part of the
assets, etc.
(3) Where a council of creditors has been organized for the purpose of
collecting bad credits, the business of actual inspection,
etc. carried out
by the members of the council of creditors (hereinafter referred to as
the "members") for the purpose of joint
sale of assets, etc. which had
been acquired through conversion into investment or proffer of collateral,
etc. by the largest stockholder
may be carried out by a certified public
accountant, notwithstanding the provisions of paragraph (2): Provided,
That the certified
public accountant falling under any of the following
subparagraphs shall be excluded:
1. The certified public accountant rendering the service of auditing or
identifying the members who have charge of the service of
joint sale
ENFORCEMENT DECREE OF THE CERTIFIED PUBLIC ACCOUNTANT ACT
13
of assets, etc.;
2. The certified public accountant rendering the service of auditing or
identifying the members who have 50/100 or more of the assets,
etc.
that are intended for joint sale; or
3. The certified public accountant who renders the service of auditing
or identifying the members whose sum total of the assets,
etc. in pos-
session are 50/100 or more of the assets, etc. intended for joint sale.
(4) The term "procedures prescribed by the
Presidential Decree" in Article
21 (3) of the Act means procedures that a certified public accountant consults
with an auditor
(including the audit committee under Article 415-2 of
the Commercial Act; hereafter in this Article referred to as the "auditor,
etc.") of a company about its business prior to the conduct of any other
business than those as referred to in any subparagraph
of Article 21 (2)
of the Act and seeks a consent of the auditor, etc. to such business as
having the potential for causing the
conflict of interest.
(5) With respect to the business dealt with pursuant to the procedures
as referred to in paragraph (3), the certified public accountant
concerned
shall put on record the matters about which he has consulted with the
auditor, etc. and to which he has obtained a consent
from the auditor,
etc., and keep it for 8 years.
CHAPTER ACCOUNTING CORPORATION,
ETC.
Article 15 (Registration of Accounting Corporation)
(1) A person wishing to register an accounting corporation pursuant to
Article
24 (1) of the Act, shall submit an application for the registration
of an accounting corporation to the Financial Services Commission
along
with documents of the following subparagraphs:
1. Articles of incorporation;
2. Resume of the representative director;
3. Documents indicating registration number and date of directors and
member accountants;
4. Documents certifying payment of capital (a certificate of payment of
capital issued by banks or other financial institutions in
case of monetary
ENFORCEMENT DECREE OF THE CERTIFIED PUBLIC ACCOUNTANT ACT
14
contribution; and a certificate of performance and an appraisal sheet
issued by authorized appraisal institution in case of proprietary
con-
tribution);
5. Business plans and budgetary document; and
6. Documents indicating places in which main or branch offices are to
be located.
(2) The Financial Services Commission shall issue a certificate of registra-
tion of an accounting corporation to a person who has
made a registration
therefor under paragraph (1).
Article 15-2 (Restriction on Functions of Accounting Corporation)
(1) The term "person prescribed by the Presidential Decree" in
Article
33 (1) 3 of the Act means a person falling under any of the following
subparagraphs: 1. A person who employs the staff member of an accounting corporation
in charge of the business of auditing or certifying his financial
statements,
etc. or his spouse within the past one year as his officer or other equivalent
thereto (including a staff member in
charge of his financial affairs);
2. A person who has credits or obligations worth not less than 100 million
won against an accounting corporation. In this case, the
proviso to
Article 14 (1) 2 shall apply mutatis mutandis to the accounting corpo-
ration; or
3. A person who has the relation as referred to in Article 14 (1) 3 through
5 with an accounting corporation.
(2) The provisions of Article 14 (2) through (5) shall apply mutatis mutan-
dis to accounting corporations. In this case, a "certified
public accountant"
shall be deemed an "accounting corporation".
[This Article Newly Inserted by Presidential Decree No. 18352, Apr. 1, 2004]
Articles 16 through 18 Deleted.
The term "amount determined by the Presidential Decree" in Article 27
(2) of the Act means 500 million won.
Article 20 (Accumulation of Compensation Reserve)
(1) Pursuant to Article 28 (1) of the Act, an accounting corporation shall
reserve
the amount accountable for two percent of the turnover of the
present business year in each business year for compensation reserve.
(2) Under paragraph (1), an accounting corporation shall reserve the
ENFORCEMENT DECREE OF THE CERTIFIED PUBLIC ACCOUNTANT ACT
15
compensation reserve until it reaches the amount accountable for an av-
erage of 10 percent of the turnover of the two preceding
business years
and the present business year.
(3) Where an accounting corporation exercises indemnity against liabil-
ity of a director or a member accountant for payment out
of compensation
reserve, it shall add the indemnity amount to the compensation reserve.
Article 21 (Limited Contribution, etc.
in Other Corporations)
The aggregate amount of contributions into other corporations and secu-
rity for liability of other persons
by an accounting corporation provided
for in Article 29 (1) of the Act shall not exceed the amount accountable
for 25 percent (10
percent of its own equity in case of the amount of se-
curing liability of other persons) of its own equity provided for in Article
29 (2) of the Act (referred to as "its own equity"; hereafter the same
shall apply in this Article): Provided, That where the amount
computed
by the reduction of the compensation reserve out of its own equity exceeds
500 million won, the amount not exceeding 50
percent thereof may be
contributed into other corporations.
Article 22 (Branch Office)
An accounting corporation which establishes branch offices pursuant to
Article 32 (1) of the Act shall have three or more full-time
certified public
accountants for each branch office.
[This Article Wholly Amended by Presidential Decree No. 16846, Jun. 23, 2000]
Article 23 (Management or Operation of Deposits)
(1) Where an accounting corporation, pursuant to Article 37 (3) of the
Act, deposits a sum of money accountable for the compensation
reserve
(hereinafter referred to as "deposits") with the Institute of Certified Pub-
lic Accountants, deposits shall be placed
with the designation of a di-
rector to whom deposits shall be refunded (hereinafter referred to as the
"depositor"), and with
the determination of the amount of deposits: Pro-
vided, That if an accounting corporation which remains or is created
after an
accounting corporation is dissolved because of merger succeeds
the compensation reserve of the dissolved accounting corporation,
de-
posits shall be deemed to have been placed in accordance with Article
37(3) of the Act.
(2) In case of deposits under the main sentence of paragraph (1), a de-
ENFORCEMENT DECREE OF THE CERTIFIED PUBLIC ACCOUNTANT ACT
16
positor shall be a director at the time of dissolution, and the sum of
money shall be computed by the rate of contribution at the
time of dis-
solution.
(3) The Institute of Certified Public Accountants shall maintain sepa-
rate accounts of deposits from its other assets by identifying
depositors.
(4) Where a person suffering damage applies for payment of deposits
to the Institute of Certified Public Accountants
for reasons of final judg-
ment of compensation or judicial settlement (including the cases in which
disputing parties accept conciliatory
proposals in accordance with Ar-
ticle 29 (3)), together with documentary evidences of such reasons, pay-
ments not exceeding deposits
by each depositor shall be made within a
month from the date of application.
(5) The Institute of Certified Public Accountants shall save deposits
under paragraph (1) into banks or other financial institutions,
or man-
age or operate them by purchasing government bonds or other corporate
bonds by which the principal is promised to be guaranteed.
(6) The Institute of Certified Public Accountants shall refund the re-
maining sum of money out of deposits to depositors three
years after
the date on which deposits are made (hereinafter referred to as the "re-
fund date"): Provided, That where judicial
actions are pending with re-
spect to liability for compensation under Article 28 of the Act as of the
refund date, the remaining
sum shall be refunded after payments out of
deposits by a final judgment of such actions.
(7) Matters necessary for management of deposits other than those pro-
vided for in paragraphs (1) through (6) shall be determined
by the In-
stitute of Certified Public Accountants.
CHAPTER KOREAN INSTITUTE OF
CERTIFIED PUBLIC
ACCOUNTANTS
Article 24 (By-laws)
By-laws of the Institute of Certified Public Accountants shall contain
each of the following subparagraphs:
ENFORCEMENT DECREE OF THE CERTIFIED PUBLIC ACCOUNTANT ACT
17
1. Denomination and place of headquarters;
2. Matters relating to the establishment of branch office;
3. Matters relating to appointment of officers and their functions;
4. Matters relating to admission and withdrawal of members;
5. Matters relating to composition, functions and duties, meetings of gen-
eral meetings of members, board of directors, ethics committee,
other
bodies;
6. Matters relating to supervision of services by members;
7. Matters relating to discipline;
8. Matters relating to professional ethics, rights and obligations of mem-
bers;
9. Matters relating to membership dues;
10. Matters relating to accounting and assets;
11. Matters relating to training of members;
12. Matters relating to mutual benefits projects to cover liability for compen-
sation of members; and
13. Matters relating to organization of the Institute of Certified Public
Accountants.
Article 25 (Officers and Directors)
(1) There shall be officers and directors at the Institute of Certified Public
Accountants as follows:
1. A chairman;
2. Five vice-chairmen or less;
3. Fifteen directors or less; and
4. Two auditors.
(2) There shall be at least one full-time vice-chairman and at least one
full-time director from among such officers
and directors as provided in
paragraph (1).
Article 26 (Notification, etc. of Holding of General Meetings)
(1) Where the Institute of Certified Public Accountants wishes to
hold
general meetings, it shall notify the Financial Services Commission of date
and time, place and agenda of general meetings
not later than a week
prior to the date on which the general meetings are to be held.
(2) In case where the Institute of Certified Public Accountants holds general
ENFORCEMENT DECREE OF THE CERTIFIED PUBLIC ACCOUNTANT
ACT
18
meetings in accordance with paragraph (1), it shall notify forthwith the
Financial Services Commission of results of such general
meetings.
Article 27 (Composition, etc. of Disputes Conciliation Commission)
(1) The Disputes Conciliation Commission referred to in Article
45 (2)
of the Act (hereafter referred to as the "Dispute Conciliation Commission"
in this Chapter) shall be composed of seven members
including a chairman.
1. A person who is recommended by the Governor of the Financial Supervi-
sory Service from among its assistant vice-governors;
2. A person who is recommended by the heads of associations whose mem-
bers are stock-listed corporations and which were established
under
Article 181 (1) of the Securities and Exchange Act from among their
officers and directors;
3. One officer of a consumer organization registered with the Fair Trade
Commission pursuant to Article 29 of the Framework Act on
Consumers;
4. An attorney at law;
5. A university professor; and
6. A certified public accountant of not less than 10 years' practice ex-
perience.
(3) The term of office of the chairman and members shall be two years
and renewable.
(4) Any decision at meetings of the Dispute Conciliation Commission shall
be made with the attendance of four or more members and
with concurrent
vote of a majority of those present.
(5) Matters necessary for the operation of the Dispute Conciliation Commis-
sion other than those provided for in paragraphs (1)
through (3) shall
be determined by the Dispute Conciliation Commission.
Article 28 (Request for Conciliation)
(1) Pursuant to Article 45 (1) of the Act, disputing parties may request
the president of the Institute of Certified Public Accountants
to provide
conciliation.
(2) Pursuant to paragraph (1) above, a person wishing to make a request
for conciliation shall submit a request, in writing, for
conciliation to the
Institute of Certified Public Accountants, together with each document
of the following subparagraphs:
1. Documents evidencing grounds of request for conciliation and facts there-
of;
2. Power of attorney in the case of request by an agent; or
3. Other evidential documents and materials necessary for conciliation.
(3) Forms of request for conciliation under paragraph (2)
above shall
be determined by the Institute of Certified Public Accountants.
Article 29 (Procedures for Conciliation of Disputes)
(1) In the case of request for conciliation, under Article 28 (1) above,
the president of the Institute of Certified Public Accountants
may notify
the disputing parties of content of the request and encourage them to
reach an agreement, and shall immediately refer
it to the Dispute
Conciliation Commission unless an agreement is made within 30 days
from the date on which the request is made.
(2) Where one of the disputing parties commences an action before the
court during conciliation proceedings, the president of the
Institute of
Certified Public Accountants shall suspend the proceedings despite par-
agraph (1) and notify the parties of it.
(3) In the event that the Dispute Conciliation Commission prepares con-
ciliatory proposals, the president of the Institute of Certified
Public
Accountants may present such conciliatory proposals to the requesting
persons and the party concerned, and recommend them
to accept such
proposals.
ENFORCEMENT DECREE OF THE CERTIFIED PUBLIC ACCOUNTANT ACT
20
(5) The disputing parties or other interested persons may appear before
the Dispute Conciliation Commission and present their views.
(6) Pursuant to paragraphs (4) and (5), a person wishing to present
his views may appoint his agent to appear and present his views.
(7) Matters necessary for dispute settlement procedures other than those
specified in paragraphs (1) through (6) shall be determined
by the Dispute
Conciliation Commission.
Article 30 (Disciplinary Tribunal)
A Certified Public Accountants Disciplinary Committee (hereinafter refer-
red to as the "Disciplinary Committee") shall be established
in the Financial
Services Commission, pursuant to Article 48 of the Act.
Article 31 (Composition of Disciplinary Committee)
(1) The Disciplinary Committee shall be composed of seven members includ-
ing
a chairman.
1. Each person nominated, upon the request of the Chairman of the
Financial Services Commission, by the Chairman of the Board of
Audit
and Inspection and the Minister of Legislation from among public officials
of Grade or higher belonging to such Board and
such Ministry;
2. One person nominated by the Chairman of the Financial Services
Commission from among public officials of Grade or higher belonging
to the Financial Services Commission;
3. One person nominated by the president of the Institute of Certified
Public Accountants from among full-time vice-presidents of
such Insti-
tute;
4. One of non-stsanding members of the Securities Futures Commission
ENFORCEMENT DECREE OF THE CERTIFIED PUBLIC ACCOUNTANT ACT
21
under the Act on the Establishment, etc. of Financial Services
Commission (hereinafter referred to as the "Securities Futures Commis-
sion"); and
5. One person nominated, upon the request of the Chairman of the Financial
Services Commission, by the Minister of Strategy and Finance
from
among public officials of Grade or higher belonging to such Ministry.
Article 32 (Chairman)
(1) The chairman shall control general matters of meetings of the Discipli-
nary Committee, represent it, and call and preside over
the meetings thereof.
Article 33 (Request for Disciplinary Decisions)
(1) Where the Financial Services Commission deems there are reasons
falling under each of subparagraph of Article 48 (1) of the
Act, it shall
make a request, in writing, to the Disciplinary Committee, along with
the documentary evidences.
(2) Upon the request under paragraph (1), the Disciplinary Committee
shall notify forthwith the person to whom allegations are made.
Article 34 (Time-limit for Disciplinary Decisions)
In the case of request for disciplinary decisions, the Disciplinary Committee
shall make a disciplinary decision within 30 days from the date on which
the request is made: Provided, That if there are unavoidable
causes, the
period may be extended within 30 days through a decision of the Disciplinary
Committee.
Any decision at meetings of the Disciplinary Committee shall be made
with the attendance of not less than four members and with
concurrent
vote of a majority of the members present.
ENFORCEMENT DECREE OF THE CERTIFIED PUBLIC ACCOUNTANT ACT
22
Article 36 (Exclusion or Challenge)
(1) A member of the Disciplinary Committee who is relatives of a person
to whom allegations are made, or who is involved in grounds
of discipline
shall not take part in the deliberation of subjects of discipline.
(2) Where a person to whom allegations are made deems a member of
the Disciplinary Committee is likely to be under justifiable doubts
as to
reliable decisions, he may make a request for challenging the member,
together with statements attesting reasons of such
request.
(3) Where there is a request for challenging a member of the Disciplinary
Committee pursuant to paragraph (2), the Disciplinary
Committee shall
make a decision as to whether or not the member shall be challenged.
In this case, the challenged member may not
take part in making such
decision.
(2) Where the Financial Services Commission has taken a disciplinary
action pursuant to a decision of the Disciplinary Committee,
it shall notify
forthwith in writing, which clarifies the reasons for the disciplinary action,
the president of the Institute of
Certified Public Accountants and the chair-
man of the Securities Futures Commission, respectively.
CHAPTER SUPPLEMENTARY PROVISIONS
Article 38 (Entrustment of Services)
(1) Pursuant to Article 52 (2) of the Act, the duties of the Financial Services
Commission pursuant to Articles 7 through 9, and
30 (2) of the Act, Articles
10 and 11 of this Decree, shall be entrusted with the Institute of Certified
Public Accountants.
(2) Pursuant to Article 52 (2) of the Act, duties of the Financial Services
Commission as to discipline pursuant to Article 48 (2)
3 and 4 from among
those duties pursuant to Article 48 (1) of the Act shall be entrusted with
the Institute of Certified Public
Accountants. In these circumstances, a
decision-making body replacing the Certified Public Accountants
Disciplinary Committee shall
be the Ethics Committee pur suant to subpara-
graph 5 of Article 24.
(3) Where the Institute of Certified Public Accountants performs entrusted
duties pursuant to paragraph (2), the provisions of Articles
33 through
37 shall apply mutatis mutandis. In these circumstances, the term "the
Chairman of the Financial Services Commission"
in Article 33 shall be
deemed as "the president of the Institute of Certified Public Accountants",
the term "not less than four"
in Article 35 as a "majority", the term "the
Committee" in Articles 33 through 37 as "the Ethics Committee", re-
spectively.
(4) A person who is dissatisfied with the disciplinary action taken by the
Institute of Certified Public Accountants may request
it to reopen hearings.
(5) Where the Financial Services Commission deems that disciplinary ac-
tion taken by the Institute of Certified
Public Accountants is unreasonable,
it may request such Institute to reopen hearings, or may request the Certified
Public Accountants
Disciplinary Committee to revoke such disciplinary
action and make a new disciplinary decision. 1. Delivery and receipt of application for attempting examinations; or
2. Administration of examinations and ancillary services thereof.
(7) As respects entrusted duties pursuant to paragraph (1), (2),
or (6),
both the Institute of Certified Public Accountants and the Governor of
the Financial Supervisory Service shall notify the
Financial Services
Commission of the results thereof.
CHAPTER LEVY AND COLLECTION OF
PENALTY SURCHARGE
Article 39 (Criteria, etc. for Levy of Penalty Surcharge)
(1) Where the Financial Services Commission levies a penalty surcharge
under Article 52-2 of the Act, it shall comply with the criteria falling
under any of the following subparagraphs:
1. The amount equivalent to 70/100 of the maximum amount of penalty
surcharge as stipulated in Article 52-2 (1) of the Act (hereafter
referred
to as the "maximum amount of penalty surcharge" in this Article) shall
be levied as a penalty surcharge, in case where
the amount of error
or ommission due to the relevant offenses is in excess of the amount
under the following items:
(a) Accounting corporation: 40/100 of the gross value of assets of a
firm subject to auditing or certification; and
(b) Certified public accountant: 20/100 of the gross value of assets
of a firm subject to auditing or certification;
2. The amount equivalent to 60/100 of the maximum amount of penalty
surcharge shall be levied as a penalty surcharge, in case where
an
offense falls under any of the following items: Provided, That this shall
not apply to the case where the offense falls under
subparagraph 1:
(a) Where the offense subject to the levy of penalty surcharge is commit-
ted during the last 3 years over 3 times
in case of an accounting
corporation, and over twice in case of a certified public accountant;
and
(b) Where the scale of profits acquired due to the relevant offenses
is in excess of 500 million won in case of an accounting corporation,
and in excess of 100 million won in case of a certified public account-
ant; and
3. In other cases than subparagraphs 1 and 2, the amount equivalent
to not less than 20/100 and less than 60/100 of the maximum amount
of penalty surcharge shall be levied as a penalty surcharge.
(2) The amount of penalty surcharge computed under paragraph (1) may
be weighted or mitigated within the limit of one half of the relevant amount
in view of the conditions under each subparagraph
of Article 52- 2 (2)
ENFORCEMENT DECREE OF THE CERTIFIED PUBLIC ACCOUNTANT ACT
25
of the Act: Provided, That the gross amount of penalty surcharge shall
not exceed the maximum amount of penalty surcharge even where
it is
weighted.
(3) Where the Financial Services Commission levies a penalty surcharge
under Article 52-2 of the Act, it shall notify in writing
of the payment
of penalty surcharge, clarifying the type of the relevant offense and the
amount of such penalty surcharge.
(4) Any person in receipt of notification under paragraph (3) shall pay
the penalty surcharge within 60 days from the date of receiving
such notifica-
tion to a collecting agent designated by the Financial Services Commission.
(3) Matters necessary for the extension of time of payment or a written
application for an installment payment under Article 52-4
(2) of the Act
shall be determined by Ordinance of the Prime Minister.
[This Article Newly Inserted by Presidential Decree No. 17238, Jun. 18, 2001]
Article 41 (Additional Dues)
The term "additional dues as prescribed by the Presidential Decree" in
Article 52-5 (1) of the Act means the amount computed by
multiplying
the delinquent penalty surcharge by 6/100 per annum.
[This Article Newly Inserted by Presidential Decree No. 17238,
Jun. 18, 2001]
Article 42 (Urging)
(1) The urging under Article 52-5 (2) of the Act shall be made in writing
within 15 days after the expiry of the payment term.
(2) The payment term of delinquent penalty surcharge shall, in case of
issuing an urging notice under paragraph (1), be within 10
days from
the date of issuing such notice.
[This Article Newly Inserted by Presidential Decree No. 17238, Jun. 18, 2001]
Article 43 (Entrustment of Disposition for Arrears)
ENFORCEMENT DECREE OF THE CERTIFIED PUBLIC ACCOUNTANT ACT
26
(1) Where the Financial Services Commission entrusts the Commissioner
of the National Tax Service with the duties of disposition
for arrears under
Article 52-5 (3) of the Act, it shall do so in writing along with the documents
falling under any of the following
subparagraphs:
1. Resolution notice of revenue collection and a notice thereof; and
2. Urging notice of payment.
(2) The Commissioner of the National Tax Service shall, where he is en-
trusted with the duties of
disposition for arrears under paragraph (1),
notify in writing the Financial Services Commission of the date of completing
such
duties and other necessary matters within 30 days from the date
of completing the duties of disposition for arrears.
[This Article Newly Inserted by Presidential Decree No. 17238, Jun. 18, 2001]
ADDENDA
Article 1 (Enforcement Date)
This Decree shall enter into force on the date of its promulgation.
Article 2 (Examples of Application as to Computation of Duration
of
Training)
At the time this Decree enters into force where a person who has passed
the certified public accountants second examination administered
in accord-
ance with the amended provisions of the Enforcement Decree of the Certified
Public Accountant Act, Presidential Decree
No. 12427, used to work or
is working for an establishment designated by the Minister of Finance
and Economy pursuant to Article
12 (1), the period of his em ployment
shall be included in the duration of training. In this circumstances, he
must undergo training
for not less than hours determined by the Institute
of Certified Public Accountants pursuant to the amended provisions of
Article
12 (5) at an accounting training institute under Article 46 (2)
of the Act.
Article 3 (Examples of Application as to Accumulation of Compensation
Reserve)
The amended provisions of Article 20 (1) above shall apply to the turnover
of a business year which commences first after this Act
takes effect.
Article 4 (Transitional Measures Relating to Recognition of Qualifica-
tion for Certified Public Accountants with
Regard to Those who Passed
ENFORCEMENT DECREE OF THE CERTIFIED PUBLIC ACCOUNTANT ACT
27
Certified Public Accountants Second Examination Administered Prior to
1988)
(1) A person who passed the certified public accountants second ex-
amination administered prior to the entry into force of the
amended
provisions of the Enforcement Decree of the Certified Public Accountant
Act, Presidential Decree No. 12427 shall be recognized
as qualified to
act as certified public accountants, limited to each of the following sub-
paragraphs:
1. Where he passed tests on tax law and finance management from
among subjects of the second examination which are set out in Table
2: Provided, That if he is qualified to act as a certified tax consul-
tant or falls within the category under Article 5-2 (2)
of the Certi-
fied Tax Accountant Act, he shall be exempt from test on tax law; or
2. Where he accomplished training as to tax law and finance manage-
ment from among subjects of the second examination set out in
Table
2 for not less than 100 hours in each subject at the accounting train-
ing institute pursuant to Article 46 (2) of the Act,
and scored not
less than 60 marks in each paper on tax law and finance management
administered by the accounting training institute:
Provided, That if
he is qualified to act as certified tax consultant or falls within the
category under Article 5-2 (2) of the
Certified Tax Accountant Act,
he is exempt from test and examination on tax law.
(2) Tests, pursuant to paragraph (1) 1, shall
be administered at the
same time as the certified public accountants second examination, and
the text of Article 3 (2) and the
amended provisions of Articles 7 through
9 shall apply to procedures on attempting the examination and the de-
termination of passing
candidates.
Article 5 (Transitional Measures as to Computation of Duration of
Training)
The period of training during which a person who passed the certified
public accountants second examination administered prior to
the entry
into force of the amended provisions of the Enforcement Decree of the
Certified Public Accountants Act, Presidential
Decree No. 12967 has ob-
tained training after he got registered on trainee certified public accoun-
tants register shall be included
in the duration of training, prescribed
in the amended provisions of Article 12 (2).
Article 6 (Transitional Measures as to Security Measures for Compen-
sation)
ENFORCEMENT DECREE OF THE CERTIFIED PUBLIC ACCOUNTANT ACT
28
At the time this Decree enters into force a certified public accountant
who filed reports as to the commencement of practicing shall
take mea-
sures to secure compensation pursuant to the amended provisions of Ar-
ticle 13 on July 15, 1997, despite the amended
provisions of Article 13
(1), and file reports as to this with the Institute of Certified Public Ac-
countants.
Article 7 (Transitional Measures as to Accounting Firm)
An accounting firm at the time of implementation of this Decree shall
submit
documents specified in each subparagraph of the amended pro-
visions of Article 15 (1) and a copy of register containing each content
of subparagraph of the amended provisions of Article 16 (2) with the
Minister of Finance and Economy on December 31, 1997.
Article
8 (Transitional Measures as to Maintenance of Capital)
In the case in which the amended provisions of Article 19 apply with re-
gard to an accounting firm established by Article 5 (3) of the Addenda
of the Act, the amount which is to be determined on December
31, 1999
in accordance with the Presidential Decree shall be 500 million won.
Article 9 (Transitional Measures as to Limited Contributions
into Other
Corporations)
At the time this Decree enters into force, an accounting firm who has
exceeded limits of contribution pursuant to the amended provisions
of
Article 21 shall satisfy the limits on December 31, 1998.
Article 10 (Transitional Measures as to Certified Public Accountants
Disciplinary Committee)
At the time this Decree enters into force, members of the Certified Pub-
lic Accountants Disciplinary Committee pursuant to the
former provi-
sions shall be deemed to be members of the Certified Public Accountants
Disciplinary Committee pursuant to this Decree.
In these circumstances,
the terms of office shall commence from the date on which the terms of
office starts in accordance with
the former provisions.
Article 11 (Transitional Measures as to Extent of Functions of Overseas
Certified Public Accountants)
As respects the extent of functions and title of an overseas certified pub-
lic accountant who got approved by the Minister of Finance
and Econ-
omy as qualified to act as certified public accountant at the time of the
implementation of the amended provisions of
the Enforcement Decree of
the Certified Public Accountant Act, Presidential Decree No. 14231, the
provisions of Articles 14 and
15 of the amended provisions of the Enforce-
ENFORCEMENT DECREE OF THE CERTIFIED PUBLIC ACCOUNTANT ACT
29
ment Decree of the Certified Public Accountant Act, Presidential Decree
No. 12967 shall apply.
Article 12 (Relationship with Other Acts and Subordinate Statutes)
At the time this Decree enters into force, references in other
legislation
to the former Enforcement Decree of the Certified Public Accountant
Act or its provisions, where there are pertinent
provisions to them,
shall be construed to include this Decree or relevant provisions thereof
with the effect of replacing the former
provisions.
ADDENDUM
ADDENDUM
ADDENDA
This Decree shall enter into force on July 1, 2006.
Articles 2 through 4 Omitted.
ADDENDA
(2) (Transitional Measures Regarding TOEFL IBT) Where any person has
acquired marks necessary to be a successful applicant at a
TOEFL
Internet-based test referred to in the attached Table 3 and has submitted
his test record in accordance with the public announcement
of the plan for
holding the 2007 certified public accountants examination before the enforce-
ment of this Decree, he shall be
deemed to have passed the test of English
subject referred to in Article 2 (1) and the attached Table 1.
ADDENDA
This Decree shall enter into force on March 28, 2007. (Proviso Omitted.)
Articles 2 through 8 Omitted.
ADDENDA
This Decree shall enter into force on date of its promulgation. (Proviso
Omitted.)
Article 2 Omitted.
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