2014년 감사인지정제도 확대 정책이 재무적 부실기업 조건의 회피에 미치는 영향

This study verifies the validity of the expansion of auditor designation system, to improve the Independence of audit and audit quality in 2014. I analyze whether Insolvent company adjusts earning. Separating insolvent company, based on the 2013 financial statements in order to verify this, this study analyzes by a modified adjusted profit model for the discretionary accruals as the dependent variable Using a sample of 1,317 companies/year. The results are as follows. First, Insolvent company is the earning management of more positive than normal Firm. Here, insolvent company is ‘Company that exceed the 1.5 times of the industry average debt ratio’, ‘Company that debt ratio is above 200%’ and ‘Company that interest coverage ratio is less than 1’. Second, ‘Company that exceed the 1.5 times of the industry average debt ratio’ or ‘Company that interest coverage ratio is less than 1’ adjusts more earning than ‘Company that debt ratio is above 200%’. Since the 1.5 times of the industry average debt ratio’ is below 200%, ‘Company that exceed the 1.5 times of the industry average debt ratio’ can be avoided the forced auditor designation easier than ‘Company that debt ratio is above 200%’. Third, this study analyzes that the number of Insolvent company conditions affect the change of earning. As a result, ‘Three conditions of insolvent company’ adjusts more earning than ‘Two or less conditions of insolvent company’. The significance of this study is to show increasement the earning management of insolvent company due to the expansion of auditor designation system, and difference of earning management because of the differences in content and number of insolvent company condition.