• 품질경영학회지
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• 제50권4호
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• pp.735-749
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• 2022

Purpose: The purpose of this study is to investigate whether the Management Discussion and Analysis (MD&A) has an impact on auditors' audit efforts. MD&A is a means of disclosure that provides information about a company from the management's perspective in financial reporting. The MD&A is a standardized format of nonfinancial information that can be useful for the stake-holders. The auditors have incentives to utilize the nonfinancial information contained in the MD&A for their decision-making. We posit that the MD&A disclosure quality is associated with the level of audit efforts. Methods: We hand-collect the disclosure data from the Financial Supervisory Service of Korea (the Korean SEC). Results: By employing two measures of audit efforts, we document evidence that the quality of MD&A is associated with both audit hours and audit fees. Conclusion: It implies that the auditors perform intensive audit work for companies with high-quality disclosure of MD&A. The study contributes to the literature by providing the first approach to examine the association between the MD&A disclosure and audit efforts.

• The Journal of Asian Finance, Economics and Business
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• 제8권7호
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• pp.525-532
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• 2021

This study examines the association between a firm's business strategy and audit report lags. This study employs 5,072 firm-year observations from 2015 to 2019. Our sample comprises all of the firms listed on the Korea Composite Stock Price Index (KOSPI) market and Korea Securities Dealers Automated Quotation (KOSDAQ). We perform OLS regression analysis to test our hypothesis. The OLS regression analysis was conducted through the SAS and STATA programs. We find that business strategy is positively associated with audit report lags. Especially, we find that defender firms are negatively associated with audit report lags. The findings of this study suggest that prospector-like firms would increase their performance uncertainty as well as audit risk. Therefore, prospector-like firms interfere with the efficient audit procedures of auditors. On the other hand, our findings indicate that defender-like firms would decrease their performance uncertainty as well as an audit risk because they focus on simple product lines and cost-efficiency. For this reason, auditors will be able to carry out the audit procedures much more easily. Our results present that a prospector-like business strategy degrades audit effectiveness as it exacerbates a company's financial risk, willingness to accept uncertainty, and the complexity of organizational structure.

• 한국융합학회논문지
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• 제13권4호
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• pp.321-329
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• 2022

본 연구는 경영전략 상 신제품 또는 R&D비용 관련 고유위험을 가진 선도형 기업이 회계감사시간에 어떤 영향을 미치는지 분석하며, 더 나아가 직급별 감사시간에 어떤 영향을 미치는지 분석한다. 표본은 유가증권 및 코스닥 상장기업을 대상으로 2018년부터 2019년 표본을 이용하여 실증분석하였다. 분석결과, 첫째, 선도형 기업의 고유위험을 감사인이 인지하고 감사품질을 높이기 위해 노력하고 있는 것으로 나타났다. 둘째, 감사팀 내 직급과 역할에 따라 상응하는 위험정도가 다르기 때문에 위험정도가 높은 핵심직급에서 더 높은 노력을 하는 것으로 나타났다. 본 연구의 결과는 기업의 경영전략 유형이 재무보고품질이나 조세회피 등과 같은 기업 내부적 요인이 아닌 외부 관계자인 감사인의 감사노력과 자원투입에 어떠한 영향을 미치는지 검증하는데 연구의 의의가 있다. 또한 감사품질 제고를 위한 정책과 제도를 마련하는 데 있어, 기업의 경영전략이 중요한 고려 요소가 될 수 있다는 중요한 함의를 갖는다.

• 산경연구논집
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• 제6권1호
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• pp.37-40
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• 2015

Purpose - Investors, creditors, governments, and others make decisions using reasonable information provided by others. In many cases, the users of this information have goals and objectives conflicting with those of the information's producers, indicating the need for external auditors. Research design, data, and methodology - Competition in auditing has noticeably intensified globally, especially in developed countries. This means that auditors are striving to increase the efficiency of their methods. In recent years, risk-based auditing has become prominent among these efforts. In risk-assessment auditing, the auditor may directly affect the effectiveness and efficiency of the audit. Results - As a central framework, the risk assessment process improves audit quality and effectiveness such that the audit will lead to necessary changes. Previous studies have shown that risk assessment affects the nature, timing, and content of audit procedures. Conclusions - In the planning stage of an audit, audit risk assessment may identify any inappropriate or inefficient distribution of resources or determine whether the results of an audit will be ineffective or incorrect. Thus, assessing audit risk is a critical task.

• Journal of East Asia Management
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• 제4권1호
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• pp.23-51
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• 2023

We investigate whether the association between management overconfident tone and the level of audit effort measured by audit fees and hours differs depending on the level of earnings management. Prior studies suggest that firms led by overconfident managers are likely to initiate risky investments, report low quality financial statements, and have material weaknesses in internal control system. These characteristics, combined together, result in higher audit risk. At the same time, auditors assess audit risk based on the quality of financial reporting, measured by level of earnings management. As a result, the assess audit risk is likely to reflect the combined effect of management overconfidence and the level of earnings management. In this paper, we investigate whether auditors differentiate the effects of real earnings management (REM) and accrual-based earnings management (AEM) when they assess the audit risk related management overconfident. Using the CEO's letter published in 2018, we measure the CEO's tone representing the degree of overconfidence (i.e., activity). Based on this measure, we find that the positive association between managerial overconfident tone and audit effort is more pronounced as the level of REM is higher. However, we find that the baseline association does not vary depending on the level of AEM. These results suggest that auditors consider the managerial overconfident severer when such characteristic accompany the higher level of REM, which can be outcome of aggressive business decisions possibly leading to the higher audit risks. We further find that these results are stronger for Big 4 auditors and continuing auditors. This paper contributes to the literature and practice as follows. First, we provide contextual evidence on how auditors reflect managerial characteristics in the audit process by documenting that auditors actively increase their audit efforts only when overconfident managerial characteristics are highly likely to lead to audit risk. This result suggests that auditors conduct external auditing considering both the efficiency and effectiveness of the audit process. Second, we suggest that auditors use information obtained from a wide range of sources to identify audit risks. Our results provide evidence of how the auditing standards, which do not provide detailed guidelines for audit risk assessment, are being applied in practice. Finally, our results also enhance the understanding of how audit fees are determined. Combined with the studies related to audit pricing, we provide the important reference for discussion between the auditor and the auditee about the audit fee that has created acute tension after the enforcement of the new External Audit Act.

• The Journal of Asian Finance, Economics and Business
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• 제8권5호
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• pp.627-637
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• 2021

This research extends the literature on the effect of board characteristics and ownership structure on audit fees; these factors affect the firm's agency costs and how the auditor assesses various risks, hence the audit efforts and fees. The paper introduces political connections as a determinant of audit fees for the first time in Jordan, where the political connection is prevalent and affects decision making on the Jordanian boards. The sample consists of 109 manufacturing and service firms listed on the Amman Stock Exchange (ASE) over the years 2012-2019. Data is obtained from the ASE and the company's annual reports. Board characteristics are measured by board size, independence, leadership duality, meetings frequency, political connections, and audit committee. Ownership structure was measured by concentration, foreign ownership, and Institutional ownership. The study hypotheses were tested by using Generalized Least Squares regression. The Findings showed that larger boards, politically connected firms, and firms with leadership duality are more likely to pay higher fees. Besides, Firms with greater foreign ownership pay less fees, whereas the rest of the variables are insignificant. Results suggest that political connections play a major role in determining audit fees; this provides a recommendation to policymakers in Jordan to reconsider regulations regarding political connections.

• 경영과학
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• 제12권2호
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• pp.129-146
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• 1995

As society's relience on computerized information systems to support a wide range of activities proliferates, the long recognized importance for adequate data quality becomes imperative. Furthermore, current trends in information systems such as dispersal of the data resource together with its management have increased the difficulty of maintaining suitable levels of data integrity. Especially, the importance of adequate accounting (transaction) data quality has been long recognized and many procedures (extensive and often elaborate checks and controls) to prevent errors in accounting systems have been introduced and developed. Nevertheless, over time, even in the best maintained systems, deficiencies in stored data will develop. In order to maintain the accuracy and reliability of accounting data at certain level, periodic internal checks and error corrections (internal audits) are required as a part of internal control system. In this paper we develop a general data quality degradation (error accumulation ) and cost model for an account in which we have both error occurrences and error amounts and provide a closed form of optimal audit timing in terms of the number of transactions that should occur before an internal audit should be initiated. This paper also considers the cost- effectiveness of various audit types and different error prevention efforts and suggests how to select the most economical audit type and error prevention method.

• 한국항행학회논문지
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• 제16권6호
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• pp.1080-1091
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• 2012

정보시스템에 대한 감리대상이 과거 업무단위 시스템을 중심으로 수행하던 2단계 감리에서 통합 정보시스템에 대한 감리가 개발 전과정을 3단계로 더 심화된 감리를 단계별로 수행하고 있어, 감리품질에 대한 제3자 확인 등 정보시스템 감리에 대한 사회적 책임의 요구가 높아지고 있다. 따라서 감리품질을 향상시키기 위해 감리품질에 영향을 주는 요인에 대한 연구와 감리품질 향상에 대한 노력이 필요하다. 본 연구는 기존 연구에서 개발된 리더십 이론을 총괄감리원의 역량 규명 및 감리원의 임파워먼트 분석에 활용하여 총괄감리원 역량과 감리인 임파워먼트 등이 감리서비스 품질 간의 인과관계를 분석할 수 있는 모형을 개발하고 현장에서 감리를 수행하는 감리원들을 대상으로 설문을 실시하고, 그 내용을 LISREL을 이용하여 구조방정식인 방법으로 실증적으로 검증하였다.

• 대한의생명과학회지
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• 제22권3호
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• pp.65-74
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• 2016

The critical aspects of biosafety and bio-containment have been increasingly important in recent years. Biological agents involved in biological research projects at the Nanyang Technological University (NTU) Singapore are usually those with low risks. Biosafety level 2 or BSL 2 laboratories are widely used. However, biosafety measures which refer to the implementation of laboratory practices and procedures, specific construction features of laboratory facilities and safety equipment must be in place to reduce the exposure of laboratory personnel, the public or the environment to potentially infectious agents or other biological hazards. It is also required to pay more attention to laboratory-acquired infections (LAIs) which may occur in research laboratories, clinical laboratories or animal facilities. BSL 2 audit and certification program is implemented as an internal exercise covering laboratories in the university where biological agents are handled or biological research works are carried out. We have put some efforts to raise biosafety standards university-wide in both laboratory infrastructure and laboratory practices to a higher level. Common audit findings are briefly discussed in this presentation.

• 한국인터넷방송통신학회논문지
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• 제19권2호
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• pp.211-219
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• 2019

정보시스템 감리 수행 시 반드시 필요한 절차, 기법, 방법론 등은 지속적으로 연구가 진행되고 있으며 이를 활용하는 감리인들은 감리 수행 시 감리보고서 표준화 및 품질 제고에 많은 도움을 받고 있다. 또한 정보시스템감리 수행의 최종 결과인 감리보고서는 "정보시스템의 효율적 도입 및 운영 등에 관한 법률(현행, 전자정부법)" 이 제정되면서 법적인 근거와 위상을 갖게 되었다. 따라서, 본 논문은 정보시스템 감리보고서의 품질 향상에 기여하고자 감리인이 전달하고자 하는 보고서 내용의 문장 구성 형태에 어떠한 오류가 있는지를 분석하여 대안을 제시하고 검증을 수행하였다. 본 논문에서 이러한 목적을 달성하기 위해 우선적으로 감리보고서의 작성목적, 기능, 구성 체계, 활용성의 기반이 되는 법적 근거 및 위상을 고찰 후 다수의 현장 감리보고서를 대상으로 보고서에 나타난 문제점을 분석하고, 오류 현황 및 사례를 들어 분류 정리하였다. 오류 현황의 원인 분석 및 개선 방안과 점검 리스트 모형을 만들어 활용할 수 있게 정리하였다. 본 논문의 논거 실효성 검증을 위해 오류 개선방안을 현장 감리보고서에 실제로 적용하였다. 또한, 문법적인 오류를 검증할 수 있는 인공지능(AI) 기반의 자동화 도구에 대한 향후 연구과제도 추가로 제시했다. 향후, 본 논문이 감리 현장에서 유용하게 활용되어 감리발전에 기여할 것을 기대한다.