• Journal of Distribution Science
• /
• v.15 no.8
• /
• pp.47-54
• /
• 2017

Purpose - According to agency theory, managers have incentives to adjust firm revenues to meet earnings expectations or delay bad news disclosure because of performance-based compensation and their reputation in the market. When the bad news accumulates, stock prices fail to reflect all available information. Thus, market prices of stocks are higher than their intrinsic value. After all, bad news crosses the tipping point, it comes out all at once. That results in stock crashes. Auditors can decrease stock crash risk by reducing agency costs through their informational role. Especially, stock price crash risk is expected to be lower for firms adopting high-quality audits. We focus on distribution and service industry to examine the relation between audit quality and stock price crash risk. Industry specialization and auditor size are used as proxies for auditor quality. Research design, data and methodology - Our sample contains distribution and service industry firms listed in KOSPI and KOSDAQ during a period of 2004-2011. We use a logistic regression to test whether auditor quality influences crash risk. Auditor quality was measured by industry specialist auditor and Big4 / non-Big4 dichotomy. Following the approach in prior researches, we use firm-specific weekly returns to measure crash risk. Firms experiencing at least one stock price crash in a specific week during year are classified as the high risk group. Results - The result of analyzing 429 companies in distribution and service industry is summarized as follows: Above all, it is shown that higher audit quality has a significant negative(-) effect on the crash risk. Crash risk is alleviated for firms audited by industry specialist auditors and Big 4 audit firms. Therefore, our results show that hypotheses are supported. Conclusions - This study is very meaningful as the first study which investigated the effects of high audit quality on stock price crash risk. We provide evidence that high-quality auditors reduce stock price crash risk. Our finding implies that the risk of extreme losses can be reduced through screening of high-quality auditors. Therefore investors and regulators may utilize our findings in their investment and rule making decisions.

• Journal of Digital Convergence
• /
• v.10 no.9
• /
• pp.123-136
• /
• 2012

Web applications are widely used by the development of the Internet, but there are no separate audit model for a web-based information systems. Information business has a wide variety of characteristics. So, web-based information system audit model is needed. Therefore, a web-based information system audit model was proposed to enhance the effectiveness of audit and to increase the quality. Audit check lists were applied based on three sets of existing information audit check framework. An audit point of time was defined as analysis, design, and implementation. An audit domain was defined as contents, design, and process. Moreover, audit viewpoint and inspection standards were defined by setting standards of process, product, and performance. Moreover, this paper proposes differences between an existing model of information system development methodology and web-based information system. It also deduced audit checklists according to audit domains for web-based information system audit. The deduced audit checklists were verified for its suitability by conducting surveys, and the modified audit inspection model, in which the deduced audit checklists were applied, was proposed.

• The Journal of Asian Finance, Economics and Business
• /
• v.7 no.11
• /
• pp.169-176
• /
• 2020

Business going concern is an important issue to be addressed since it determines how companies will survive. One indicator of the going concern problem is going concern opinion. The going concern opinion is a result of evaluation of auditors on going concern assumption of financial reporting. This research aims to examine the effect of opinion shopping, prior opinion, audit quality, and financial condition on going concern opinion. Research sample consists of 80 listed manufacturing companies on the Indonesian Stock Exchange surveyed between 2013 and 2017. Analysis data uses logistic regression. Based on the result, prior opinion affects going concern opinion, while opinion shopping, audit quality, and financial condition have no effect on going concern opinion. The significant effect of prior opinion on going concern opinion indicates that auditors consider the evaluation of the previous condition of companies' concern problematic since going concern is hard to be solved in a short-term period. This research provides recommendations for companies to increase their business ability so going concern problem can be avoided. This research also suggests to auditors to consider prior opinion to issue current opinion since previous companies' condition can be used as a general picture to initiate the auditing process.

• The Journal of the Institute of Internet, Broadcasting and Communication
• /
• v.16 no.6
• /
• pp.277-285
• /
• 2016

This paper aimed at contributing to the improvement of objectivity and reliability of operating audit, quantitative audit result, being able to comparing with best practice and past operating status, through providing quantitative operation check sheet. Quantitative operation check sheet is comprised of thirteen basic check sheet area. The auditors evaluate the current operation status level with basis of basic check sheet area. It is hoped that this thesis on a quantitative operation check sheet for the Improvement of the operation Audit will become the basis for the applicaton and effectiveness of an operation audit that not only the improvement of the quality of information system audit but also usability of operation audit.

• The Journal of KAIRB
• /
• v.5 no.1
• /
• pp.14-20
• /
• 2023

Purpose: To obtain fundamental data on selection tools for an internal audit and develop a new guideline. We scored the indicated points from the internal audit, identified the research progress and problems that occurred, and confirmed the validity of the risk factors involved. Methods: Of the 63 internal audits conducted by Keimyung University Dongsan Hospital from 2014 to 2021, we analyzed 55 clinical trials with an inspection checklist. We excluded 8 that failed to transfer data and refused to comply with the internal audit. The statistical summary of the collected data was verified and interpreted by using frequency analysis and a chi-square test. Result: Of total 55 cases included in the internal audit, sponsor-initiated trial (SIT) was 63.6% (vs. investigator-initiated trial [IIT]), clinical trial for investigational drug was 71.0% (vs. nonclinical or clinical trial for investigational device), domestic multicenter trial was 60.0% (vs. single center or multinational multicenter trial), and trial requisition for MFDS approval was 69.1% (vs. exception for MFDS approval). The 10 areas of the clinical trial inspection checklist (reports, protection of subjects, compliance with protocols, records, management of investigational drug and/or device, delegation of duties, qualification of investigators, management of specimen, contract-agreement and approval of protocols, and preservation of recorded documents) were weighted between 2 to 5 points. The average of the total points was 16.09±13.2 and 20 clinical trials were above the average. As a result of comparing the average of the total points weighted by year, the highest score was in 2020. The 4 factors that play significant roles in determining the internal quality were (1) principal subjects that initiated the clinical trials (p=0.049), (2) type (p=0.003), (3) phase of clinical trials (p=0.024), and (4) number of registered subjects reported at the time of continuing deliberation (p=0.019). Of the 10 areas of the clinical trial inspection checklist, 'record' was the most inappropriate and insufficient. We found more indicated points; the quality of performance declined in IIT, nonclinical trials, and other clinical trials that were not in phase I1-IV4, and the study of more than 30 registered subjects at the time of continuing review. Conclusion: If an institution has an internal audit selection tool that reflects the aforementioned risk factors, it will be possible to effectively manage high-risk studies; thereby, contributing to an efficient internal audit and improving the quality of clinical trials.

• Journal of Korean Academy of Nursing Administration
• /
• v.2 no.2
• /
• pp.97-107
• /
• 1996

Nursing standards determine the type and extent of services that are delivered to the patients and define quality care and communicate the institution's expectations of care. Thus, taking the standard of care and incorporating it into a welldefined indicator of excellent patient care becomes one of the first activities in setting up the nursing service's quality assurance process. The purpose of this study was to determine the impact of using a nursing care standards for the quality of nursing care in gastrectomy patients. The subjects were composed of fourty-two under going gastrectomy patients with stomach cancer in general surgery nursing care unit of K University Hospital in Pusan. The data was collected from January 3 to April 13,1996. The subjects were divided into a control group - those admitted from Jan.3 to Feb.12 and an experimental group those admitted from Feb.18 to April 13. The instruments used for this study were a nursing care standards in gastrectomy patients developed by the investigator and an evaluation tool for the quality of nursing care in abdominal surgery patients developed by Byoung-Sook Lee in 1995. The data was analized by means of chi-square test, t-test and Cronbach-alpha test with the SAS System. The result was as follows : The hypothesis, that scores of the quality of nursing care in the experimental group would be higher than that of the control group. was supported(t=-6.12, p=0.00). The detailed results of each standards of evaluation tool were as follows : The mean score of the experimental group was significantly higher than that of the control group in audit standard 1:'Collection of basic data of the patients', (t=-3.76, p=0.00). The mean score of the experimental group was significantly higher than that of the control group in audit standard 2 : 'Defining nursing diagnoses(or nursing problems)', (t= (-), p= (-) ). The mean score of the experimental group was significantly higher than that of the control group in audit standard 3:'Estabilishment of nursing care plan according to nursing diagnoses(or nursing problems)',(t= (-), p= (-) ). The mean score of the experimental group was significantly higher than that of the control group in audit stndard 4:'Implimentation of nursing care plan', (t=-2.38, p=0.01). The mean score of the experimental group was significantly higher than that of the control group in audit standard 8 : 'Increase of the knowledge of health related to surgery',(t=-2.40, p=0.01). No significant differences between the mean scores of the experimental group and that of the control group in audit standard 5 : 'Recover and maintain of the physical function', audit standard 6:'Prevention of the post-operative complication', audit standard 7 : 'Decrease of discomfort caused by operation', and audit standard 9 : 'Patient satisfaction in nursing care' were found. The standards of evaluation tool were devided into two dimension. One was process dimension which contains four standards(audit standard 1 to 4), the other was outcome dimension which contains five standards(audit standard 5 to 9). The mean score of the experimental group was significantly higher than that of the control group in process dimension (t=-12.30, p=0.00), but no significant difference between the mean scores of the experimental group and that of the control group in outcome dimension was found. From these results, it is concluded that using a nursing care standards in gastrectomy patients promotes quality of nursing care and nursing care standards of various fields are necessary for effective nursing care.

• Journal of Industrial Convergence
• /
• v.21 no.4
• /
• pp.65-72
• /
• 2023

This study's purpose is to verify how the periodically designated auditor in the recently implemented periodic auditor designation system affects audit quality. In this study, hypotheses were established by reviewing previous studies, and 980 samples of 2019 and 2020 were selected for KOSPI-listed companies. Dechow & Dichev (2002)'s accrual quality was used as the dependent variable, and the effect of whether or not a company was periodically designated as an auditor and whether or not a Big 4 auditor was selected was empirically analyzed. As a result of the analysis and correlation analysis, a statistically significant difference was confirmed in the quality of the dependent variable accrual and the independent variable designated auditor (PA). However, as a result of the regression analysis model 1, it was found that the designated auditor was not significant, but it was confirmed that there was a significant difference in the control variables. Further analysis confirmed the difference in audit quality according to the Big 4 auditors. This study is significant in that it is a study that uses empirical data to study the effect of audit quality and the selection of regularly designated auditor companies after the introduction in 2019 and 2020. Due to the non-disclosure of government-designated companies, there is a limit that there may be a difference from the selection based on the researcher's published selection criteria.

• Journal of Advanced Navigation Technology
• /
• v.18 no.6
• /
• pp.609-618
• /
• 2014

Information system audit, by checking overall matters about constructing and managing information system, has to contribute to improvement of information system's quality and improving performance of projects. For this, an auditor has to present objective corroborative facts which back up result of audit and ways of improvement, but in reality, general(especially businessmen's) cognition is that audit is biased by way too subjective opinions. Local experience and theoretical research until now propose that tools of automating audit will be an active means of systematically collecting and proposing these objective evidences of audit. This research not only verified that in the field of audit, phenomenon of technology application can be explained and predicted by applying TAM, but it also contributed in extending theoretical base on information technology and audit by distinguishing several characteristics which appear in the process of the model's application and analysis.

• Proceedings of the Korean Society for Quality Management Conference
• /
• 2010.04a
• /
• pp.16-23
• /
• 2010

This research analyzed about inconsistence and cause of the audit result on national defense quality management system in certification company. Direction of research analyzes corelation with distribution by items at national defense quality management system standard by Investigated number and occurrence of examination report slight and critical incongruity on 2008 and 2009. Study finding slight and critical incongruity happened to first examination average 10.2 items, renewal examination average 7.0 items. By incongruity occurrence appeared high in item that there are a lot of examination item shares of standard requirement, it was studied by correlative thing between the examination with standard. Factor of incongruity occurrence was proved to comprehension insufficiency for quality management system, quality procedure insufficiency, didn't fulfil proceedings, business was unripe. In this papers, we contribute to propose direction for improvement of national defense quality management system comprehensive faculty elevation and national defense quality certification in this treatise.

• The Journal of Asian Finance, Economics and Business
• /
• v.8 no.1
• /
• pp.363-373
• /
• 2021

The present study seeks to investigate the degree of awareness that constitutes the audit gap expectations (AEG) to determine which audit responsibilities can be narrowed or even eliminated. The author had surveyed a sample comprising four groups including auditors, auditees, the financial community, and other interest groups. In this survey, 1400 questionnaires were sent to the respondents, and the total number of responses was 454. The collected data was processed using statistical software SPSS, version 22. The Chi-Square test was used to analyze the effect of professional differences on AEG. The results of this study indicate that AEG cannot be eliminated due to the occupational impact of each survey group (about 46%), but it can be narrowed down to 54%, including a reduction of 11% in the knowledge gap (lack of public knowledge), 13% in the reasonable expectations gap (unqualified audit quality), 30% in the deficient standards gap (limited auditing standards). These results could be attained by improving training, communicating, and adding more responsibilities. This is the first study that provides another method of measuring the contribution of the knowledge gap through professional differences and professional gaps that make up each of the AEG's components.