중소기업의 내부회계관리제도 모범규준 선택이 감사노력과 감사품질에 미치는 영향

This study investigates whether the selection of the best practice for internal control over financial reporting (ICFR) for small and medium enterprises (SMEs) is related to auditors’ audit efforts and audit quality. Specifically, it analyzes the relationship between SMEs’ selection of best practice applied to large companies and audit effort (audit hours) and audit quality (discretionary accrual). The study used 5,758 SME-year samples which are listed in KOSPI and KOSDAQ market for 9 years from 2011 to 2019. Main results are summarized as follow. First, SME’s selection of best practice for　ICFR applying large companies showed a significant positive (+) relationship with auditors’ audit hours. These result means that the auditor expands ICFR certification and financial statement audit procedures for SMEs applying the standard for large companies. Second, a significant positive (+) relationship was found between the application of best practice for ICFR applied to large companies and audit quality, suggesting that SMEs’ voluntary and active efforts to design and operate ICFR are related to the improvement of financial statements reliability. This study has a contribution that empirically suggests that the selection of best practice for ICFR by SMEs is related to the increase in audit efforts and audit quality. This presents the benefits of actively applying the ICFR for SMEs and important implications to stakeholders such as companies, auditors, and supervisory authorities.