불성실공시가 감사시간과 감사보수에 미치는 영향

초록

The purpose of this study is to find out if auditors consider the designation as an Unfaithful Disclosure Corporation(hereinafter UDC) of the company being audited in determining the audit hours and audit fees. Specifically, this study will analyze whether auditors put in additional audit hours for companies designated as UDC and as a result charge additional audit fees. To be designated as an UDC means that the company executive have provided false information or concealed important information to the participants of the capital market with impure intention. Therefore, from the standpoint of auditors, a company designated as an UDC means there is high possibility the company executive prepared financial statements with ulterior motive. In other words, designation as an UDC for auditors can be an influential factor in audit risk. The analysis results shows difference in relation between designation as an UDC and audit hours according to the exchange market the company is listed in. Specifically, audit hours are shown to increase for UDC designated companies listed in the KOSPI stock market, while on the contrary, audit hours actually decrease for UDC designated companies listed in the KOSDAQ stock market. The same results are found in the analysis when the number of designation times as UDC is set as the independent variable. On the other hand, audit fees show a positive relevance to the designation as UDC. In addition, positive relevance with audit fees is found in the analysis when the independent variable was set as the number of designation times as UDC or cumulative penalty points. That is, this can be summarized as the auditor of companies listed in the KOSPI stock market recognizes the designation as UDC as an audit risk and charge additional fee by putting in extra audit hours, but auditors of companies listed in the KOSDAQ market charge additional fee for the audit risk resulting from designation as UDC while not putting in any additional audit hours. While previous studies focused on analyzing the responses in the capital market concerning UDC, this study is differentiated as it analyzes the influential factors of audit risk that results from UDC. In addition, this study makes a new contribution as it provides empirical evidence that corporate opportunity cost due to designation as UDC not only cause costs in the perspective of the capital market such as the cost of debt capital, the usefulness of information, etc., but also additional costs followed by increase in audit risk. In particular, the result of this study that auditors are not putting in appropriate audit hours for companies designated as UDC in the KOSDAQ market is expected to provide implications for auditors, client firms and supervisory institutions.

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