Our audit approach demands that we know as much as we can about your business, the environment in which you operate, and the systems and controls you use. By thoroughly understanding your business, we can concentrate on the areas of greatest risk and avoid performing unnecessary procedures on relatively insignificant areas.

Risk-based Audit Approach

All our audits are led by experienced partners who are heavily involved in the engagement personally and staffed by professionals with the appropriate skill level and industry knowledge matched to your business. Our audit methodology follows a “top-down, risk-based” approach. We will assess the entity level risks and controls to evaluate the overall general risks and controls including IT general controls and to identify specific financial reporting risks. We concentrate on areas of greatest risk and avoid performing audit procedures on insignificant areas to be cost-effective and to create added value. High-risk areas are those subject to significant judgment, which have a higher probability of audit adjustments. We perform preliminary procedures on identified areas to highlight potential problems and resolve them prior to year-end. We meet with the client on a timely basis to discuss business operations, plan the audit and continuously improve the process.

To accomplish this, we will:

• Identify significant risks
• Evaluate the strengths and weaknesses of your procedures and controls to determine how well they protect against risks
• Test the key procedures and controls to ensure they are in fact operating effectively
• Communicate effectively and timely with management on the results of our work
• Deliver constructive suggestions to minimize risk and help improve your performance
• Minimize disruption to your staff while effectively leveraging existing information and processes
• Coordinate the tax schedule with the audit schedule in order to avoid duplication of effort

Timely Issuance of Reports

We are committed to meeting the time requirements for the issuance of the reports. In order to do this, we identify all potential accounting and audit issues early on, and conduct related research for solutions and discuss our solutions with clients in a timely manner. Early identification of potential issues is the key factor to eliminate any possibility for untimely issuance of the audit reports.

International Financial Reporting Standards (IFRS)

PK has been providing our clients with assistance and reviews of financial reporting packages to their parent companies in Korea on an IFRS basis since 2009 and has audited financial statements under IFRS for a few selected clients.

Management Letter

We will issue a letter to management, containing practical suggestions for potential operating efficiencies, ideas on cost reductions, revenue enhancements and improvement of internal control, accounting, operating and systems procedures. Prior to issuing the letter, we will discuss our recommendations with management to ensure that our understanding of the relevant facts is correct and to obtain the benefit of management’s judgment.

SEC Registration and Filings

PK is a PCAOB registered public accounting firm and may assist you in SEC registration and filing procedures. The PCAOB is a non-profit corporation established by Congress to oversee the audits of public companies in order to protect the interests of investors and further the public interest in the preparation of informative, accurate and independent audit reports.