The Effect of Auditor's Materiality Judgment on Audit Quality
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This study analyzed the effect of auditor's materiality judgment on audit quality. In particular, the hypothesis that the auditor's opinion would be more relevant to the audit quality considering materiality compared to the existing discretionary accrual amount and the hypothesis that the audit quality would be higher in large accounting firms than small accounting firms in consideration of materiality were verified through empirical analysis. The sample companies required to verify the hypothesis of this study are those that have been listed on the exchange for the past five years from 2017 to 2021. The materiality amount was measured through the general materiality measurement method, and the research hypothesis was verified using discretionary accruals. As a result of the analysis, the proxy value of audit quality considering materiality was more relevant to the unqualified opinion than in the case of discretionary accrual. confirmed that there is. According to the analysis results of this study, comparing audit quality only with discretionary accruals does not take into account the materiality amount, which is the criterion for judgment in the auditor's decision-making process, so there is a risk of underestimating the audit quality. Therefore, it suggests that audit quality should be determined in consideration of the materiality amount, which is the breaking point of decision-making or the breaking point of usefulness of information.
Abstract
This study analyzed the effect of auditor's materiality judgment on audit quality. In particular, the hypothesis that the auditor's opinion would be more relevant to the audit quality considering materiality compared to the existing discretionary accrual amount and the hypothesis that the audit quality would be higher in large accounting firms than small accounting firms in consideration of materiality were verified through empirical analysis. The sample companies required to verify the hypothesis of this study are those that have been listed on the exchange for the past five years from 2017 to 2021. The materiality amount was measured through the general materiality measurement method, and the research hypothesis was verified using discretionary accruals. As a result of the analysis, the proxy value of audit quality considering materiality was more relevant to the unqualified opinion than in the case of discretionary accrual. confirmed that there is. According to the analysis results of this study, comparing audit quality only with discretionary accruals does not take into account the materiality amount, which is the criterion for judgment in the auditor's decision-making process, so there is a risk of underestimating the audit quality. Therefore, it suggests that audit quality should be determined in consideration of the materiality amount, which is the breaking point of decision-making or the breaking point of usefulness of information.
참고문헌 (17)
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