The estimation of recoverable amount used for impairment loss is an accounting treatment that is highly likely to cause differences of opinion between the firm and its auditors. This study verifies the relevance between the auditor's industry expertise and management's discretionary recognition. The results of the analysis of firms that capitalized development costs from 2011 to 2021 are as follows. First, Industryspecialized auditors showed a significant positive(+) relevance with discretionary impairment loss recognition. Second, as a result of analysis according to the characteristics of the market, the auditor's role was different. Third, it is the result of verifying the auditor's ability to control management according to the market's sanctions on development cost accounting. Only, in the KOSPI market, it was found that the auditor's industry expertise had a significant negative(-) effect on the manager's discretionary recognition after market sanctions. Lastly, it was found that the auditor's industry expertise reduced management's discretionary recognition in the KOSDAQ market where there is a disclosure on development cost impairment loss accounting treatment. The results of this study show that the effect of supervisory sanctions and auditor's ability may differ depending on the characteristics of the market and the level of voluntary disclosure by firms.