Academy of Accounting and Financial Studies Journal (Print ISSN: 1096-3685; Online ISSN: 1528-2635)


The relationship between voluntary disclosure of carbon emission information and audit hours

Author(s): Suyon Kim

The purpose of this study is to examine the relationship between the voluntary disclosures of carbon emissions influences audit hours. Using, 1,671 Korean firms from 2018 to 2021, this study uses regression analysis to determine whether the voluntary disclosure of carbon emissions is related to total audit hours. This study further tests the impact of voluntary disclosure of carbon emissions on audit hours of engagement partners, CPA, and staff. The findings of this study imply that even though managers’ voluntarily disseminating information alleviates information asymmetry, auditors perceive it as an increase in inherent risk, which is a driver for higher audit hours. Also, this study deepens the understanding of the effect of voluntary disclosure of carbon emissions on audit hours by rank. The result suggests that if the auditor recognizes that the company's voluntary disclosure activities cause an audit risk, they will not only put partners and CPAs, who are expected to have sufficient expertise and experience, into the audit work, but also increase the audit hours of staff.

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