최고 경영자 교체가 감사보수 및 감사시간에 미치는 영향

This study investigates whether CEO turnover affects audit fees and audit times. Previous research suggests that CEO turnover has effects on important corporate policy, operating and investment activities, earnings management around the time of their replacement, and uncertainty of future corporate performance. After all, CEO turnover can be inferred as the events affecting the risk of financial reporting. Therefore, this study verifies whether CEO turnover increases financial reporting risk through audit fees and audit times. Our sample includes listed firms in KOSPI between 2008 and 2019. Our results are as follows: First, we find that a positive association between CEO turnover and audit fees(audit times). It can be inferred that the CEO change causes auditors to incur additional resources and audit time due to the increased audit risk. Second, we find that the audit fees and audit times increase as the case that incoming(successor) CEO is invited from outside the company, replaced by professional manager, or when departing(predecessor) CEO is forcibly replaced. These results imply that there is a difference in the increase in both audit fees and audit times depending on the type of CEO turnover. Our study makes several contributions as follows: First, we suggest that external users, such as investor, creditors, etc., should pay more attention to the use of financial statement of firm that have replaced CEO. Second, our results suggest that the replacement of stable and planned CEO turnover may lower the risk of financial reporting.