South Korea’s Board of Audit and Inspection(BAI) has uncovered accounting fraud worth over one trillion won at Daewoo Shipbuilding and Marine Engineering.

The BAI on Wednesday released its inspection results on Korea Development Bank(KDB)’s monitoring of the shipbuilder from October 19th to December ninth last year.

The state audit agency said that since February 2013, Daewoo did not use a financial analysis system that can detect window dressing in advance.

The firm was found to have carried out accounting fraud worth one-and-a-half trillion won for two years since 2013 in about 40 offshore plant projects by inflating operating profits.

The shipbuilder, which is currently going through restructuring, has also been found to have paid out hundreds of billions of won in incentives.

A BAI official said that the amount of accounting fraud could further rise if the prosecution and the Financial Supervisory Service expand inspections into Daewoo’s other business areas.