감사인 규모 유형별 감사품질에 대한 실증연구

초록

A large number of studies on audit quality have been done. While these kinds of foreign studies have consistently reported that Big5 auditors provide higher quality audit compared with that provided by Non-Big5 auditors, domestic studies do not. These inconsistent results of domestic studies are possibly due to the relevance of grouping auditors as Big5 vs. Non-Big5 auditors. Thus, this study assesses audit quality of auditors grouped by their affiliation with internationally renowned foreign auditors and their audit market share. Specifically, auditors are grouped as Big5 auditors, domestic Local Big auditors, and other Small auditors. Then, these auditor groups are assessed by performance of adjusted discretionary accruals of Kothari et al.(2005) along with accruals commonly used in previous studies. For the sample of 4,344 firm/years listed on Korean Stock Exchange from years 1997 through 2005 audit quality is assessed by auditor groups of Big5, Local Big, and other Small auditors. Regression results show that compared with the Non-Big5 auditors Big5 auditors provide higher audit quality. Further analyses reveal that audit quality provided by Big5 vs. Local Big auditors is not differentiated, but differentiated from that provided by Small auditors. These findings suggest that domestic Local Big auditors provide audit quality almost equivalent to that provided by Big5 auditors. These results suggest that future studies of audit quality should be careful in grouping auditors. Also, these findings are useful for firms appointing new auditors.

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