감사시장 집중도가 감사계약에 미치는 영향에 대한 문헌 검토 및 미래 연구에 대한 제언

Korean regulators have initiated several policies in recent years that induce auditor mergers and enlarge auditors. Such policies are adopted to i mprove audit quality, but related parties have expressed concerns about the potential increase in audit market concentration caused by the policies. To provide implications to the recent changes in the audit market, this study reviews theoretical and empirical studies on the effect of audit market concentration on audit characteristics . Econo mic theories predict both positive and negative effects o f concentration on audit quality and fees. Empirical research has documented mixed evidence on the effect of audit market concentration on audit quality and fees, while a recent study suggests that the strength of a country’s legal regime is an important determinant o f the concentration-fee association. To address a criticis m that concentration is an i mper fect pro xy for co mpetition , recent studies have atte mpted to measure audit market co mpetition using various alternative proxies other than concentration . This study co mprehensively reviews the current literature on audit market concentration and provides guidance for future research on the audit market and audit contracts. Furthermore, this study provides a foundation for understanding the consequences o f various audit regulations on the audit market.