Abstract

The purpose of this study is to empirically analyze the effectiveness of the internal accounting management system audit, which has been conducted since 2019. As a result of analyzing the effects on the adjustment of preliminary earnings for 6,840 companies from 2016 to 2021, the introduction of changes in the internal accounting management system did not significantly affect the adjustment of preliminary earnings. However, the mount of adjustment of preliminary earnings was found to decrease due to the influence of asset size and period after The External Audit Act. This study has the following limitations. First, the adjustment of preliminary earnings, the dependent variable of this study, is the difference between the defined earnings after an external audit and the preliminary earnings in the financial statements before the audit. There is a limitation in that the introduction of the internal accounting management system audit may suppress the discretion of managers and reduce the amount of correction, but the corrected amount can change even with the improvement of the auditor’s audit quality. Second, since this study analyzes the effectiveness of the internal accounting management system at the beginning of the introduction, the effective results of the system may not have been derived. This study has implications in that it provides the basis for discussion on the introduction of the internal accounting management system audit as well as the validity of system revision.

Keywords

• Internal Accounting Management System
• Earnings
• Adjustment of Preliminary Earnings
• Internal Accounting Management System Audit
• ICFR

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