감사기구지배구조, 감사품질 및 내부회계전문인력이 충당부채의 인식에 미치는 영향

Abstract

This paper empirically analyzes the effect of audit governance, internal specialists of accounting practice/disclosure and audit quality on recognition for estimated liabilities. According to prior research, audit governance, internal specialists of accounting practice/disclosure and audit quality may generally exert more effort on enhancing the transparency of accounting information and conservative accounting process. If they can perform more conservative and transparency accounting procedures in recognition of estimated liabilities, the recognition of estimated liabilities can be affected by audit governance, internal specialists of accounting practice/disclosure and audit quality. The sample selection procedure is summarized as follows; Our initial sample consists of 2,939 observations (firm-year) available on TS 2000 belonging to manufacturing industry with December fiscal years listed on the Korea Stock Exchange from 2004 to 2008. From these total observations, we exclude the missing financial data. We also delete the outlier of dependent and independent variable to mitigate the effects of extreme observations. Finally, the sample consists of non-banking firms (2,486 firm-years) with december fiscal year. Among total sample, 847 firm-year observations are those who report the recognition of estimated liabilities and the remaining 1,639 firm-year observations are those who report no estimated liabilities. And 451 firm-year observations are those who have the Certified Public Accountant (CPA) as the internal specialists of accounting practice and the remaining 2,035 firm-year observations are those who have no CPA. Also, 1,667 firm-year observations are those who are audited by larger auditors such as Big4 auditors that are assumed to provide high-quality audit services and the remaining 819 firm-year observations are those who are not audited by larger auditors such as Big4 auditors. Empirical findings are summarized as follows: First, consistent with the prediction, there is significant positive association between the recognition of estimated liabilities and the possession of internal specialists of accounting practice and disclosure. But there is no significant positive association between the amount of estimated liabilities and the possession of internal specialists of accounting practice and disclosure. This shows that firms report the recognition of estimated liabilities when they have the internal specialists of accounting practice and disclosure such as Certified Public Accountant that are assumed to provide the conservative accounting process. Second, there is significant positive association between the recognition of estimated liabilities and audit governance, audit quality. Also high audit governance and high quality audits are positively related to the amount of estimated liabilities. This result indicates that firms report the estimated liabilities when they are high audit governance and audited by larger auditors such as Big4 auditors that are assumed to provide high-quality audit services. These results show that audit governance, internal specialists of accounting practice/disclosure and audit quality can have an important effect on the recognition for estimated liabilities. So policy makers and firms need to pay more attention to clarify transparent criterion in recognition of estimated liabilities. Also standard-setters need to enhance overall the audit governance, internal specialists of accounting practice/disclosure and audit quality to improve the usefulness of accounting information.