• Management & Information Systems Review
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• v.34 no.2
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• pp.207-227
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• 2015

This study addresses and examines differences in firm value after tax audits by the Korean Internal Revenue Service. Tax audits can potentially depreciate a firm's value due to the mass cash outflow that often results from the additional tax charges involved. However, tax audits that reveal negative aspects of a business, such as excessive entertainment expenses, fraudulent accounting, or inappropriate business practices, may have positive effects on a firm's value, as the monitoring involved can improve accounting transparency and reduce agency costs. This study shows that there is typically an increase in a firm's value in the year after a tax audit has been conducted, in comparison with the previous year. This result suggests that firm value can increase after a tax audit is conducted, despite the possible value depreciation resulting from a mass cash outflow.

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

• Management & Information Systems Review
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• v.33 no.5
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• pp.71-84
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• 2014

We examine evidence on the relationship between firms that targeted by the Financial Supervisory Service for allegedly manipulating annual earnings and accounting quality measured by the discretionary accruals, an issue with important public policy implications. The main purpose of this paper is to empirically investigate the extent to which Korean WDS(Window Dressing Settlement) firms identified by the financial supervisory service in their audit review exhibit higher level of accounting quality in order to avoid any potential negative effects and to regain public confidence after audit review. In this study, we analyzed 51 WDS firms and 102 control firms which traded in the Korean Stock Exchange market during the period from 2000 to the 2010. The number of observations subject to various tests are 251 and 502 firm-years for WDS and control samples respectively across the 5 year sample period. The results of the study show that the accounting quality after auditor review be significantly improved. This result suggests that the FSS's audit review system would control the accounting quality and then improve the transparency of the accounting information. Thus it may be suggested that the current audit review system is efficient ways to lead listed firms to provide transparent financial statements.

• Proceedings of the KSR Conference
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• 2011.10a
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• pp.2557-2562
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• 2011

The purpose of Overall Railroad Safety Audit(ORSA) is to prevent railroad accidents, and, every two years, to inspect and evaluate whether or not railroad operators faithfully adhere to railroad safety guidelines in accordance with the Railroad Safety Law. However despite of the many contributions of ORSA, due to lots of railroad accidents such as train failures and derailment caused track irregularity this year, it has been recently considered that ORSA will be renewed into Safety Certificates System as a complement. In order to guarantee railroad safety, new Safety Certificates must included appropriate safety standards considering current our country's railroad conditions. Therefore, in this study we're going to compare safety components of foreign audit system with those of Airlines field, based on ORSA's contents for years, to review Safety Management System and Safety Culture, as a result, we'd like to suggest to updated Railway Safety Standards.

• Bulletin of the Korean Mathematical Society
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• v.50 no.2
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• pp.611-626
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• 2013

In the paper we study the finite-time ruin probability in a general risk model with constant interest force, in which the claim sizes are pairwise quasi-asymptotically independent and arrive according to an arbitrary counting process, and the premium process is a general stochastic process. For the case that the claim-size distribution belongs to the consistent variation class, we obtain an asymptotic formula for the finite-time ruin probability, which holds uniformly for all time horizons varying in a relevant infinite interval. The obtained result also includes an asymptotic formula for the infinite-time ruin probability.

• Asian Journal of Business Environment
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• v.6 no.1
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• pp.5-12
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• 2016

Purpose - The purpose of this study is to investigate the effect of corporate governance practices such as (board size, board composition, CEO duality and audit committee) on the performance of selected Pakistani firms. Research design, data, and methodology - This study examines corporate governance structure by using the data of 80 non-financial firms listed on Karachi Stock Exchange Pakistan during 2010-2014. Hypotheses of the study were tested by using both descriptive and inferential statistics. Result - The findings indicate that board size and audit committee is positively related to the firm performance (ROA & ROE). In contrast, board composition and CEO duality are negatively related to the firm performance (ROA & ROE). As far as controlling variables is concerned, leverage is negative, whereas firm size is positively related to all measures of performance. Conclusions - Empirical findings concluded that corporate governance practices affect the firm performance. Therefore, it is suggested that managers should understand the governance mechanisms to work more efficiently in the firm.

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

• Journal of the Korean Society of Marine Environment & Safety
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• v.21 no.3
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• pp.266-273
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• 2015

Keeping in mind that there are only limited social, economic and administrative resources for reducing marine casualties, the result of statistical survey showed the loopholes of safe maritime transport system, and rendered that most casualties occurred in coastal waters by human errors. When the IMO Marine Casualty Investigation Code was utilized to reveal any structural vulnerability of the international measures, IMO was required to expand its roles to enhance the interface between Liveware and Environment of SHEL model. So, several risk assessment models were studied and found that Maritime Safety Audit System of the Republic of Korea could be a good example of enhancing safe interface between navigators (Liveware) and the navigational circumstances (Environment). It could be dealt with at IMO level as a tool for applying at human error enforcing waters. International cooperative research for upgrading risk assessment modes should also be future terms of reference.

• 한국IT서비스학회:학술대회논문집
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• 2005.11a
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• pp.311-318
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• 2005

최근 정보 시스템의 기능이 복잡화, 거대화하고 있는 추세에 따라 감리인이 수작업으로 시험시나리오를 작성하고, 검증시험을 실시하는 것은 매우 비효율적이라고 할 수 있으며, 결과로 얻어진 증적 자료는 신뢰성 및 객관성 면에서 한계를 가지게 된다. 정보시스템 감리의 시험단계에 대하여 적정한 시험도구를 도입 ${\cdot}$ 적용함으로써 감리 시행의 효율성을 제고하고 정량적인 판단 근거를 제시하여, 감리 의견의 신뢰성 및 일관성을 확보하는데 도움이 될 수 있다. 본 연구에서는 감리서비스요인이 감리품질과 감리성과간의 관계에 미치는 영향과 이들과 자동화 도구 적용의 적합관계를 규명하고, 나아가서 감리품질과 감리성과간의 관계를 규명하고자 하였다. 연구결과, 자동화 도구가 감리품질에 유의한 영향요인이며, 또한 감리품질은 감리성과에, 그리고 자동화 도구의 적용이 감리성과에 유의한 영향을 미치는 것으로 밝혀졌다.

• International conference on construction engineering and project management
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• 2005.10a
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• pp.1129-1137
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• 2005

ISO 9001 is being used by architectural design and engineering firms in order to strengthen the capability of business activities through the implementation of advanced ISO 9000. However, there have been significant problems in stable settlement of ISO 9000 in design and engineering company, which seem to be caused by lack of proper and comprehension. For the purpose this research was conducted by a cluster analysis of 646 audit reports out of representative 15 companies that have been audited from 1997 to 2003. The analysis showed that the most problems were generated in the areas of "Design and Development", "Production and Service Provision", and "General requirements" of ISO 9000. This research also shows that the corrective actions for disposition of nonconformities should be implemented to achive ISO 9000 standards.