A Study on the Effect of Periodic Auditor Designation on Audit Quality
Tae-Hyoung Mun, Jang-Soon Lee · 2023
[Purpose] This study’s purpose is to verify how the periodic auditor designation system of the newly implemented periodic auditor designation affects audit quality. [Methodology] Hypotheses were established by reviewing previous studies, and 493 samples from 2019 were selected for KOSPI－listed companies in Korea. The quality of accruals (McNichols, 2002) was used as the dependent variable, and the effect of whether or not the firm was designated as a periodic auditor and whether the auditor was part of the Big 4 was empirically analyzed. [Findings] As a result of the analysis and correlation analysis, a statistically significant difference was confirmed in the quality of accrual of the dependent variable and the independent variable auditor designation (PA) was found to be insignificant. We could not confirm the difference in audit quality according to the Big 4 auditors. However, a significant difference was only confirmed in ROA and loss in the control variables. [Implications] This study has significance in that it is a study of the effect of audit quality and the selection of periodic auditor designation companies introduced in 2019 using empirical data. However, since the periodic auditor designation system, which is the main subject of this study, was first implemented in 2019, not much related data has been accumulated, so there are limitations in the analysis of related studies.