국제회계기준 하에서 종속기업 중요성과 타감사인 책임구분이 연결이익조정에 미치는 영향

The Effect of Subsidiaries Importance and Division of Responsibility with Another Auditor on Earnings Management Under IFRS

This study analyzes the effect of subsidiaries importance and division of responsibility with another auditor on earnings management under IFRS. Specifically, this paper analyzes the impact on discretionary accruals of 2011 consolidated financial statements when the subsidiary importance and division of responsibility with another auditor are considered at the same time. This result shows that earnings management occurs greater when the subsidiary takes a large proportion in the consolidated financial statements and the auditor responsibility is distinguished between parent company and subsidiary. Furthermore, the robustness of this result is confirmed even when discretionary accruals and subsidiaries importance are measured in a variety of ways. Therefore, the reliability of consolidated financial statements can be damaged if subsidiaries are important in consolidated financial statements and parent company's auditor divides responsibility with another auditor of subsidiaries. This study contributes to provide policy implications for auditor conformity issue between parent company and subsidiaries under IFRS and new international audit standard.