내부통제 중요 취약점이 감사시간, 감사보수 및 이익조정에 미치는 영향: 내부회계관리제도 도입후 4년을 중심으로

This study examines the effects that the scale of auditors and the material weakness of internal accounting management might have on the earnings management directly or indirectly. We analysed the internal accounting management reports and the descriptive statistics of audit hours and audit fees in audit reports of 4 years from 2005 year to 2008 year. The sample includes 3,807 companies of KOSPI and KOSDAQ which had announced publicly the materials of this study for 3 years from 2006 year to 2003 year, the fourth year after the introduction of the regulations on the internal accounting management and the period which the introduction of the regulations takes effects. In the setting, discretionary accruals as a proxy for earnings management, audit hours and audit fees are endogenously determined. This study employs a structural equation model to take into account the endogenous variables under study. This analysis reveals through the path analysis that large auditors teams suppress the income management motivation through audit hour and audit fees and also the material weakness of internal accounting management have influence on the income management motivation through audit hour and audit fees. And this study also proposed some political suggestions that both the managements and the external auditors should be aware the importance of the effects that the internal control could have on the value of company and on the reliabilities of financial statements and should be aware that not only the accountants but whole company wide, effective internal control systems should be built and implemented affirmatively and aggressively.