내부회계관리제도와 감사위험 : 내부회계관리자의 등기이사 여부를 중심으로

This study investigates the relationship between the BOD membership of internal control system manager (hereafter, IC manager) and the audit risk measured by audit fees and audit hours. Internal control quality is affected by IC managers who build, oversight and are responsible for an internal control system. Moreover, IC managers’ power could be the viable factor that influences the effectiveness of an internal control system. Based on the agency theory and the network theory, IC managers who are on the board are expected to have more power and knowledge on an internal control system than those who are not. Thus, we hypothesize that audit fees and audit hours would depend upon whether IC managers are on the board or not, if external auditors regard it as one of the determinants of internal control quality. We found that the firms whose IC managers are on the board report lower audit fees and audit hours. This relationship is stronger when the firms are financially distressed. These results imply that external auditors consider internal control quality is good when more powerful and responsible director is in place, which leads to lower audit fees and audit hours. Additionally, we found this relationship only for Big4 auditors.