결산검사위원회 회계전문성과 지방자치단체의 대손충당금 비율

To enhance the reliability of financial reporting and accountability in local fiscal management, the Korean government doubled the number of audit committee members for local governments in 2022. However, despite this increase in committee size, research on the participation of accounting professionals in these audit committees remains limited. As the importance of accurate and transparent financial reporting in local governments continues to grow, this study empirically examines the association between the proportion of accounting professionals on audit committees and the adoption of conservative accounting practices, specifically through the allowance for doubtful accounts. Using a dataset of 1,490 observations from 17 metropolitan and 226 municipal governments spanning 2014 to 2022, we analyze the relationship between the proportion of accounting experts on audit committees and the allowance ratios for doubtful accounts related to delinquent tax receivables and non-tax revenue. The findings indicate that a higher proportion of accounting professionals on audit committees correlates with an increase in the allowance ratio for doubtful accounts, suggesting an enhancement in accounting quality within local government financial reporting. These results align with existing literature on the positive impact of accounting expertise in audit functions on organizational accounting quality. Given the critical importance of financial reporting quality in public sector organizations funded by taxpayer revenue, this study provides significant policy implications. Although audit committee sizes have been increased, current regulations do not mandate the inclusion of accounting professionals. Our findings highlight the need to strengthen the role of accounting experts in both corporate and public sector audit functions to improve the quality of financial information.