Legal Q&A
Q
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I am requesting a consultation regarding accounting fraud. I am a shareholder of a certain company, and I suffered significant financial loss because window-dressing accounting occurred at the company. It is not a trivial amount, so I feel frustrated and wronged, and in connection with this I intend to gather the relevant shareholders and proceed with litigation. I am curious about how to uncover the accounting fraud, and I would like to have an accounting fraud consultation on whether a civil claim for damages and the like is possible.
Accounting fraud
Answer
Published:
Author : Kuk Il KIM
Accounting fraud To you, who suffered loss because of it, if you prove the allegation through a civil accounting lawsuit as a claim for damages, you may receive a certain amount of compensation. Under the External Audit Act and the Financial Investment Services and Capital Markets Act, if an accounting auditor fails to record material matters in the audit report, or records them falsely and thereby causes loss to a third party, the auditor is liable to compensate for the loss.
The liability for damages in a civil accounting-supervision lawsuit is regarded as liability for non-performance arising from a mandate relationship, and the extinctive prescription period for the claim for damages is considered to be three years from the date the audit report was submitted, so you should secure as much evidence of the harm as possible and obtain specific legal advice regarding filing suit before the extinctive prescription expires.
The accounting-supervision group within our firm recovers deleted and hidden financial data using the latest equipment, and it assists clients in various areas, including conducting digital forensics investigations to gather evidence and verifying whether accounting data has been manipulated, thereby reviewing the prevention of accounting fraud and examining violations of the External Audit Act.
In addition, as you mentioned, proceeding with a class action offers many advantages, such as cost savings and ease of proof.
In this way, with the assistance of a civil attorney, we carry out litigation response strategies related to clients' cases, so if you need help, please proceed with a legal consultation.

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Kuk Il KIM
T. 070-5117-2950
Experience as Chief Prosecutor at the Seoul High Prosecutors' Office · Attorney Specializing in Criminal Law/Drugs/Intellectual Property

Byung Joon KOH
T. 070-5221-2805
Extensive experience handling large-scale corporate and white-collar crime cases · Attorney specializing in corporate/construction/labor/digital forensics law
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