In relation to an accounting audit, I would like to bring a lawsuit for damages against the external auditor who conducted a deficient audit.

In fact, a case similar to your deficient accounting audit matter has occurred, and there is relevant precedent. In its 199.4.24. judgment in case 97Da32215, the Supreme Court held, 'In general, the amount of damages that a stock investor who traded stocks on the basis of an auditor's deficient audit can seek from the auditor who conducted the deficient audit, on the basis of tort liability under the Civil Act, is properly regarded as an amount equivalent to the stock price lost due to the deficient audit.'

In addition, as to whether an auditor's liability for damages is recognized even where, through negligence, the auditor fails to state or falsely states an important matter, the court has held that, with respect to the fact that the auditor expressed an unqualified opinion on the audited company without detecting the accounting fraud, the auditor neglected its duty as an auditor.

In addition, in order to prove liability for damages, the audit report's
false statements and the fact that the stock was purchased in reliance on that report were found to have a causal relationship between them.

Under the Act on External Audit, where an auditor, by failing to state or by falsely stating an important matter in the audit report, causes damage to a third party who trusted and relied on it, that auditor is regarded as being liable to compensate the third party for the damage.

At our firm, through the collaboration of civil litigation attorneys, attorneys who are also certified public accountants, and accountants, we find evidence to prove the harm suffered from a deficient audit during an accounting audit and represent clients in lawsuits for damages arising from a deficient accounting audit, thereby assisting them.

If you need help, you are welcome to request a consultation from the Accounting Supervision Group at any time.