감사위원회 형성과 감사효과성

Most previous studies on the audit committee have addressed how audit committeecharacteristics affect audit committee effectiveness. However, it has been overlooked that auditcommittee formation may be a crucial determinant of audit committee effectiveness. Therefore, thepurpose of this study is to investigate whether the types of audit committee formation are significantlyrelated to audit effectiveness by examining the relationship between audit committee formation andeither earnings management or audit report lags.The results of this study are as follows. First, there is a significant positive relationshipbetween the mandatory audit committee and earnings management. This result implies that managers'earnings management is more prevalent in firms with mandatory audit committees than those withvoluntary audit committees. Second, there is a significant positive relationship between the voluntaryaudit committee and audit report lags, but there is no significant relationship between the mandatoryaudit committee and audit report lags. These results suggest that the voluntary audit committee hasa more positive impact on audit effectiveness than the mandatory audit committee. Third, the positiverelationship between the voluntary audit committee and audit report lags is weakened in firms withhigh audit fees and audit hours, but it is strengthened in firms with high managerial ownership. Theseresults show that the voluntary audit committee has a positive interaction with audit fees and audithours, which leads to audit efficiency, but it leads to audit report delay due to the negative interactionwith the management stake. These results imply that the voluntary audit committee can be moreeffective than the mandatory audit committee.This study contributes to prior research by suggesting that audit effectiveness depends onthe type of audit committee formation. Particularly, it implies that firms that do not have an auditcommittee should be offered incentives to form audit committee voluntarily.