파생상품이 감사보수에 미치는 영향

This paper examines the effect of derivatives on audit fee model for Korean firms. Researchers have began to acknowledge the complexity of derivatives because of both 2008 financial crisis and KIKO (Knock in Knock out) case. Companies use derivatives to reduce the cash flow volatility and systematic risk. Little research has been done to investigate the association between derivatives and audit fee even if derivatives themselves have been broadly researched in finance and accounting field. Also derivatives accounting is complex because of its variability and complexity. So this is an open empirical question about whether auditors call for audit price premium when they conduct derivatives auditing. This paper investigated Korean firms observing 767 firms per year from 2002 to 2008. The result of this empirical study is that derivatives are significantly positively (＋) associated with audit fee. In sum, derivatives are positively associated with audit fee. So, in Korean setting, we can interpret that using derivatives can increase the audit fee due to audit complexity. This paper’s contribution is as follows. First, this is the first study to research derivatives on audit fee in Korean setting. Second, through this study, we know that auditors perceive well about derivatives and call for audit fee pricing premium.