기존 감사인의 감사실패로 인한 신규 감사인 선택과 감사인 교체 이후 감사품질

This study examines the selection of new auditors of former Anjin clients after Anjin, a member firm of Deloitte in Korea, was banned from signing new contracts with listed companies for a year as punishment for audit failure of Daewoo Shipbuilding & Marine Engineering Co. (DSME).　As a result of this sanction on Anjin, firm whose three-year audit contracts with Anjin end in 2016 should appoint new auditors for 2017. I find that former Anjin clients that are forced to select new auditors in 2017 are more likely to select Big 4 auditors, compared to firms that voluntary switch auditors between 2016 and 2017. This result suggests that former Anjin clients try to restore the damaged credibility of their financial statements by appointing high-quality auditors. When the auditor selection model is estimated for former Anjin clients, I find that firms with higher levels of discretionary accruals are more likely to select non-Big 4 auditors, suggesting that some former Anjin clients with earnings management incentives appoint non-Big 4 auditors, anticipating that non-Big 4 auditors allow them to manage earnings. I also find that audit quality of former Anjin clients is not significantly different from audit quality of voluntary switchers or audit quality of non-switchers.