감사보수와 감사시간이 감사위원회 보상에미치는 영향

[Purpose]The purpose of this study is to investigate whether the demand for monitoring of the financial reporting process and auditor effort complement the monitoring function of audit committees and thus lead to greater audit committee compensation by examining the relationship between either audit fees or audit hours and audit committee compensation. [Methodology]This study uses audit fees as the demand level of monitoring for financial reporting and audit hours are used to capture auditor efforts. The effects of audit fees and audit hours on the compensation of the audit committee are regressed. [Findings]The results show that audit fees as well as audit hours are positively associated with audit committee compensation. These relationships do not depend on the provision of non－audit services by the incumbent auditor to their clients but vary depending on the magnitude of the client’s economic importance to the auditor. These results suggest that high audit fees and audit hours do not always complement the monitoring function of audit committees. On the other side, the demand for monitoring of the financial reporting process and auditor effort can serve as enrichments of audit committee roles when auditor independence is not impaired and thereby may increase their compensation. [Implications]The results of this study show the direction of policy making to maximize the monitoring effectiveness of the audit committee for managers by presenting the determinants of the audit committee compensation.