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Environmental Responsibility, Social Responsibility, and Governance from the Perspective of Auditors
This study examined the relationship between ESGs and the audit hours of 3010 Korean stock-listed firms from 2014 to 2019. The Korean Corporate Governance Service assigns ratings to each firm based on ESG performance. We discover that auditors exert more effort auditing companies that prioritize ESG...
Autores principales: | , , |
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Formato: | Online Artículo Texto |
Lenguaje: | English |
Publicado: |
MDPI
2022
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Materias: | |
Acceso en línea: | https://www.ncbi.nlm.nih.gov/pmc/articles/PMC9564669/ https://www.ncbi.nlm.nih.gov/pubmed/36231484 http://dx.doi.org/10.3390/ijerph191912181 |
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author | Lee, Jaehong Kim, Suyon Kim, Eunsoo |
author_facet | Lee, Jaehong Kim, Suyon Kim, Eunsoo |
author_sort | Lee, Jaehong |
collection | PubMed |
description | This study examined the relationship between ESGs and the audit hours of 3010 Korean stock-listed firms from 2014 to 2019. The Korean Corporate Governance Service assigns ratings to each firm based on ESG performance. We discover that auditors exert more effort auditing companies that prioritize ESGs. Additionally, we evaluated whether the CEO’s competency level influences the relationship between ESGs and the total amount of time spent auditing the company. We observed that auditors spend less time auditing companies with highly competent CEOs. We disaggregated the total number of audit hours by rank and verified each audit hour completed by partners, CPAs, as well as staff. Based on our research, we conclude that a firm’s ESG increases audit complexity, and increases the amount of effort exerted in the auditing process. |
format | Online Article Text |
id | pubmed-9564669 |
institution | National Center for Biotechnology Information |
language | English |
publishDate | 2022 |
publisher | MDPI |
record_format | MEDLINE/PubMed |
spelling | pubmed-95646692022-10-15 Environmental Responsibility, Social Responsibility, and Governance from the Perspective of Auditors Lee, Jaehong Kim, Suyon Kim, Eunsoo Int J Environ Res Public Health Article This study examined the relationship between ESGs and the audit hours of 3010 Korean stock-listed firms from 2014 to 2019. The Korean Corporate Governance Service assigns ratings to each firm based on ESG performance. We discover that auditors exert more effort auditing companies that prioritize ESGs. Additionally, we evaluated whether the CEO’s competency level influences the relationship between ESGs and the total amount of time spent auditing the company. We observed that auditors spend less time auditing companies with highly competent CEOs. We disaggregated the total number of audit hours by rank and verified each audit hour completed by partners, CPAs, as well as staff. Based on our research, we conclude that a firm’s ESG increases audit complexity, and increases the amount of effort exerted in the auditing process. MDPI 2022-09-26 /pmc/articles/PMC9564669/ /pubmed/36231484 http://dx.doi.org/10.3390/ijerph191912181 Text en © 2022 by the authors. https://creativecommons.org/licenses/by/4.0/Licensee MDPI, Basel, Switzerland. This article is an open access article distributed under the terms and conditions of the Creative Commons Attribution (CC BY) license (https://creativecommons.org/licenses/by/4.0/). |
spellingShingle | Article Lee, Jaehong Kim, Suyon Kim, Eunsoo Environmental Responsibility, Social Responsibility, and Governance from the Perspective of Auditors |
title | Environmental Responsibility, Social Responsibility, and Governance from the Perspective of Auditors |
title_full | Environmental Responsibility, Social Responsibility, and Governance from the Perspective of Auditors |
title_fullStr | Environmental Responsibility, Social Responsibility, and Governance from the Perspective of Auditors |
title_full_unstemmed | Environmental Responsibility, Social Responsibility, and Governance from the Perspective of Auditors |
title_short | Environmental Responsibility, Social Responsibility, and Governance from the Perspective of Auditors |
title_sort | environmental responsibility, social responsibility, and governance from the perspective of auditors |
topic | Article |
url | https://www.ncbi.nlm.nih.gov/pmc/articles/PMC9564669/ https://www.ncbi.nlm.nih.gov/pubmed/36231484 http://dx.doi.org/10.3390/ijerph191912181 |
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