(1) Auditors shall submit to directors an audit report within four weeks of receipt of the documents listed in Article 447-3.
(2) An audit report under paragraph (1) shall include the following:
1. Outline of auditing methods;
2. If matters to be entered in books of account are not recorded or are recorded wrongly or entries in balance sheets or income statements do not coincide with those in the books of account, a statement to such effect;
3. If balance sheets and income statements adequately reflect the status of the company's financial conditions and managerial performance according to statutes and the articles of incorporation, a statement to such effect;
4. If balance sheets and income statements fail to adequately reflect the status of the company's financial conditions and managerial performance, in contravention of a statute, or the articles of incorporation, a statement to such effect and the grounds therefor;
5. Whether it is proper to change the accounting method relating to the preparation of balance sheets and income statements and, if so, the grounds therefor;
6. Whether a business report adequately reflects the status of the company in accordance with statutes and the articles of incorporation;
7. Whether appropriation of retained earnings or disposition of deficits has been made in conformity with statutes or with the articles of incorporation;
8. If appropriation of retained earnings or disposition of deficits is obviously improper in the light of the company's financial conditions and other circumstances, a statement to such effect;
9. If supplementary statements mentioned in Article 447 do not include entries to be stated therein or include incorrect records, or include entries that do not conform with books of account, balance sheets, income statements, or business reports, a statement to such effect;
10. If a dishonest act or an act which is in material contravention of a statute, or the articles of incorporation is found with regard to the performance of duties of a director, a statement to such effect.
(3) In cases where an auditor is unable to conduct an investigation necessary for an audit, the audit report shall include a statement to that effect and the grounds therefor.[This Article Wholly Amended by Act No. 10600, Apr. 14, 2011]