A Study on the Demand of Audit Service by Small and Medium Enterprises in the US and Korea
Asian Tax Journal Vol. 1 No. 2 (2000), pp. 355-377
Abstract
This paper reports the results of a comparative study of the perceived need for audit services by smaller companies in the United States and Korea. It was anticipated that this comparison would be interesting because small companies in Korea are required by law to have their financial statements audited by CPAs whereas only the large companies in the United States must have their financial statements audited. Survey reponses from 170 Korean companies and 80 American companies indicated viewpoints on the costs and benefits of having audits. These companies reported on their perceived use of audit reports, fraud detection and deterrence, tax audits, the relevance of auditing to social problems, whether audits of all companies are desirable or should be required by law, the trustworthiness of auditors, the auditability of data, and obtaining credit.
Keywords
- Demand of Audit
- Small and Medium Enterprises
- merit of Audit
- cost of Audit
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