All appeals are dismissed.

The grounds of appeal are examined (to the extent of supplement in case of supplemental statements in the grounds of appeal not timely filed).

1. As to the violation of the Act on External Audit of Stock Companies due to accounting division (hereinafter “ External Audit Act”) and the Financial Investment Services and Capital Markets Act (hereinafter “Capital Market Act”).

A. Defendant A’s ground of appeal No. 1) The facts acknowledged by the lower court and the judgment based on the facts are as follows.

A) (i) Q Co., Ltd (hereinafter “ Q”) classified Q into “a fixed level construction work” and “a fixed mountain construction work” in accordance with the method of settling revenues from the contracts for maritime project construction in the course of internal administrative affairs.

In this regard, even if the construction cost is increased after the nature of the contract, it is difficult to expect the project owner to approve the additional request for construction cost in the form of recognition and recognition of the contractor (Change Orge, additional settlement of construction cost).

In the past, in the case of a final and conclusive construction work, unlike the settlement work, it is not easy to obtain approval from the project owner when the project owner requests the person ordering the recognition of the body related to the increased construction cost, etc., or it is not easy to secure it in fact from the project owner.

In this regard, the accounting firm with outside auditors has shown a passive position to recognize it as contract profit before there is an agreement on approval of physical recognition with the ordering person when it is related to urgent construction work.

B. In light of the international accounting standards applicable to Q’s financial accounting at the time, the contract may be divided into two parts of “fixed amount contract” and “cost compensation contract” depending on whether the contract amount is determined or not, and the accounting of each type of contract, such as the recognition of contractual proceeds.