벤포드법칙을 이용한 주기적 지정감사제의 효과분석

This study examines the effect of a periodic auditor designation on accounting quality by using Benford’s Law. We analyze financial statements from Korean listed firms from 2017 to 2021, assessing audit quality through the frequency and chi-square statistics of Benford’s Law deviations. Our findings indicate that firms with periodic auditor designation in 2020 experience a significant reduction in Benford’s Law deviations in the year before the auditor change (2019). This result suggests that periodic auditor designation enhances the independence of the departing auditor and leads to preemptive improvement in accounting quality through peer review effects (Lennox et al. 2014). However, such improvement does not persist, during the initial audit with the designated auditor, deviation levels revert to those observed two years earlier (2018). We find similar patterns for firms with periodic designation in 2021. In addition, we find that periodic auditor designation leads to a shift from Big 4 to Non-Big 4 auditors. Although auditor size does not affect the preemptive improvement in accounting quality, Big 4 auditors exhibit a smaller increase in deviation during the initial audit, suggesting the potential for quality improvement during periodic designation. Overall, these findings suggest that periodic auditor designation reinforces auditor independence and improves audit quality through peer review effects while also raising concerns about the persistence of these improvements. The study offers important implications for academics, regulators, and audit practitioners.