경제환경적 불확실성 하에서의 감사품질

Abstract

[Purpose] This paper examines the impact of macro-uncertainty on audit quality. Furthermore, it explores whether the relationship between uncertainty and audit quality varies based on the audit effort exerted by senior CPAs within audit firms.
 [Methodology] This paper uses Korean listed firms from the years 2014 to 2019 and utilizes 9,772 number of observations. To quantify uncertainty, this study employs VKOSPI, an option-based measure of uncertainty provided by KRX. For assessing audit quality, the absolute magnitude of discretionary accruals is utilized.
 [Findings] Using regression analyses, this paper finds a negative relation between VKOSPI and discretionary accruals, meaning that audit quality improves under uncertainty. Further analyses indicate that this negative relationship between VKOSPI and discretionary accruals is observed specifically within the subsample of firms audited by auditors with above median input from senior managers.
 [Implications] By using recent sample after year 2014, this paper shows evidence that audit fee discount under uncertainty does not lead to deterioration of audit quality. Korea has put consistent effort to increase the responsibility of auditors. As one example, Korean companies are obliged to disclose number of staff put to audt process, audit hours, audit plan, and actual audit implementations. The results of our paper indicates that a series of efforts to strengthen auditors’ responsibilities are somewhat effective.