초록/요약

[Purpose] Results of foreign researches on the relationship between training for internal auditor and earnings quality are not consistent. There are conflicting arguments as to whether the direction of training should be focused on independence and professionalism of internal auditors. We examined whether the internal auditors’ training is associated with earnings quality. We also examined whether audit committee is formed or not. In addition, we examined the effect of internal auditor’s accounting expertise on the relationship between training and earnings quality. [Methodology] We used the internal auditor’s training data from 2018 annual report. Two proxies of earnings quality are used. They are adjusted discretionary accruals(DA) and real －activity earnings management(REM). In order to analyze whether the relationship between auditor training, the number of training, and earnings quality influences on whether audit committee is formed or not and whether internal auditor is accounting expert or not, interaction variable of interested variables is included in regression model. Additionally, we conducted 2－stage treatment effect regression and propensity score matching(PSM) analyses to control for the endogeneity issue. [Findings] We found that adjusted discretionary accruals decrease depending on training for internal auditor is implemented and the number of training increases when audit committee is formed. We also found that adjusted accruals and real－activity earnings management decrease depending on training for internal auditor is implemented and the number of training increases when the internal auditor is an accounting expert. In additional analysis, we considered corporate governance. The result is that adjusted discretionary accruals decrease when training for internal auditor is implemented and the number of training increases in the sample of which the ratio of outside director is low. We also found that adjusted discretionary accruals decrease when training for internal auditor is implemented in case of which internal auditor is accounting expert in the sample of which the ratio of outside director is high. It is presented that adjusted discretionary accruals decrease when the number of training increases in case of which internal auditor is accounting expert regardless of the outside director ratio. As to real－activity earnings management, the positive relationship between whether training for internal auditor is implemented or not, the number of training and real－activity earnings management is weakened when internal auditor is accounting expert in case of which the ratio of outside director is high. These results suggest that the effect of training is shown differently depending on corporate governance. [Policy Implications] Our results suggest that internal auditor who is independent and accounting expert must be appointed in order to improve earnings quality through training. This study has a contribution which expands previous studies by analyzing the independence and expertise of internal auditor using dualistic internal audit system in Korea. This study also presents that it is necessary to change the contents of training because most of training is about the revision of accounting policy and standard. However, this study has limit in that only the data of 2018 is included in the analysis and there is no analysis on the contents of training.