감사인 교체와 규모가 감사품질에 미치는 영향

This paper investigates whether auditor changes and size have an effect on audit quality. More specifically, auditor change firms are divided into three major categories which are horizontal change(Big→Big or Non-Big→Non-Big), upward change(Non-Big→Big), downward change(Big→Non-Big). Audit quality is measured using modified jones model(Dechow et al. 1995) and cash flows model(Jeter and Shivakumar 1999). To test the analyses, The sample consists of 6,577 firm-year observations listed in Korea Stock Exchange(KSE) over the period of 1995-2006. The sample firms are December fiscal year and non-banking firms. Major findings of the study are as follows. In mean difference tests, auditor change firms are higher discretionary accruals than control firms at a statistically significant level(p<0.1). Downward change firms are higher discretionary accruals than upward firms at a statistically significant level(p<0.05) in modified jones model. The regression results show that auditor change has positively significant effects on discretionary accruals. As the regression analysis of auditor change direction, the study find that discretionary accruals have positively significant effects on downward change and a negative direction on upward change. These results provide indirect evidences that downward change increases discretionary accruals and upward change dose not increase.