Abstract

The purpose of this study is to analyze the degree of tax avoidance of auditor forced replacement companies. The conclusions of the previous studies analyzing the forced replacement system of auditors do not all have the same conclusions. Therefore, it is reasonable that more research is needed for the forced replacement system and follow-up studies should be conducted. This study starts with the following questions and doubts. If the auditor is forcibly replaced in accordance with the law, will the auditor assist the tax avoidant in the affected company? Or would the tax evasion behavior be reduced because a certain degree of independence was secured by the auditor mandatory replacement system? In addition, if the auditor is forcibly replaced, will tax avoidance be increased if tax auditing services are provided simultaneously? Or will the degree of avoidance of the taxpayers be lowered? According to the results of the analysis, it was found that when the auditor forcibly replaced the system, the auditor measured the degree of tax avoidance of the compulsorily replaced company. As a result, I could. On the other hand, if the auditor is forcibly replaced, the auditor who has been forcibly replaced provides the tax avoidance non - audit service simultaneously. These results are similar to those presented by McGuire et al. (2012). McGuire et al. (2012) report that the degree of tax evasion increases when tax auditors provide tax audit services. The results of this study are as follows. First, we examine the relationship between auditor forcible substitution and tax avoidance. As shown in Bae, Seong-Ho and others (2016) Of the taxpayer 's tax evasion. This study is also relevant to the implementation of the periodical auditor designation system for the listed corporations of the sovereign rights as amended on November 1, 2018.

Keywords

• Auditing
• Tax Avoidance
• Mandatory Auditor Rotation
• Auditor Provided Tax Services
• Book-Tax Difference(BTD)

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