회계법인 품질관리부서가 감사에 미치는 영향

[Purpose]This research investigates the effect of an auditor’s internal quality review on the overall audit process. Specifically, I investigate whether the auditor’s internal quality review hour is associated with the non－quality audit hour. In addition, I study the association between auditor internal quality review hours and the financial reporting’s informativeness. [Methodology]I use the firm－year observation of 7,558 spanning from 2014 to 2020 to examine the association between the auditor’s internal quality review on the non－internal quality review hour. Furthermore, I also use Ohlson (1995) model to test the association between the auditor’s internal quality review hour and the informativeness of financial information. [Findings]I show that the auditor’s internal quality review positively affects the non－quality audit hour. Hence, the auditor’s internal quality work is likely to affect the practitioner auditor’s work. In addition, the increase in auditor internal quality review hours affects the informativeness of the financial reporting. [Implications]After the regulation change in Korea, the auditor’s internal quality review becomes more important. On the other hand, there is scant evidence of the role of the auditor’s internal quality review. Hence, I will fill the void by providing the role of the auditor’s internal quality team in the audit firm.