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Korean Academic Society of Business Administration
[ Article ]
korean management review - Vol. 52, No. 6, pp.1409-1438
ISSN: 1226-1874 (Print)
Print publication date 31 Dec 2023
Received 25 Sep 2023 Revised 02 Nov 2023 Accepted 16 Nov 2023
DOI: https://doi.org/10.17287/kmr.2023.52.6.1409

감사보고서의 강조사항과 감사보수 및 감사시간과의 관련성

Hyun Ah Kim ; Namchul Jung
(First Author) Korea University of Technology & Education kukolo@koreatech.ac.kr
(Corresponding Author) School of Business Administration, Hongik University jnc1208@hongik.ac.kr
The Association between the Emphasis of Matter in Audit Report and Audit Fees and Audit Hours


Copyright 2023 THE KOREAN ACADEMIC SOCIETY OF BUSINESS ADMINISTRATION
This is an open access article distributed under the terms of the Creative Commons Attribution License 4.0, which permits unrestricted, distribution, and reproduction in any medium, provided the original work is properly cited.

Abstract

This study analyzes the relationship between the emphasis of matter (EOM) and audit fees and audit hours. Through this, the study investigates whether the information usefulness of EOM and its type in the audit report exists. The analysis results for 13,491 listed firm-years without going concern uncertainty EOM from 2011 to 2019 are as follows. First, the inclusion of EOM in the audit report showed a significant positive relationship with audit fees and audit hours, showing that the auditor recognize the incident of EOM as an audit risk factor and respond to it. Among the types of EOM, changes in the business environment, related party transactions, and orders-based industries showed an positive relationship with both audit fees and audit hours. In addition, EOM related to the litigation showed a significant positive relationship mainly with audit fees, and in the case of accounting changes and error corrections, mainly with audit hours. This means that the auditors perform the audit by recognizing EOM other than going concern uncertainty as important information. This study presented results that support the supervisory authority's policy by suggesting the usefulness of information by EOM and its type.

Keywords:

Emphasis of Matter, Audit Report, Audit Fees, Audit Hours, Audit Quality, Going Concern

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∙ The author Hyun Ah Kim is an associate professor of accounting at Korea University of Technology & Education (KOREATECH), School of Industrial Management. She graduated from Korea University and worked for Samil Accounting Corporation and Korea Securities and Finance Corporation. She received her Ph.D in accounting of Business Administration at Korea University and her research interests are corporate governance and auditing.

∙ The author Namchul Jung is currently an assistant professor in the School of Business Administration, Hongik University. He received his Ph. D. from Korea University Business School, and worked at Deloitte Anjin and BC Card Co., Ltd. His major research areas include audit quality, disclosure, and other fields of auditing and financial accounting.