Communication During the Pandemic: Use of Videoconferencing in Audit Committee-Auditor Communication

Abstract

Using Korean listed firms’ mandatory disclosure of the communication method for meetings between the audit committee and auditors from 2019 to 2020, we find that videoconferencing leads to lower audit quality. We find that neither the independence nor the expertise of the audit committee affects the relationship between videoconferencing and audit quality. However, holding more frequent formal audit committee meetings mitigates the negative impact of videoconferencing on audit quality. Overall, our paper sheds light on the types of communication between the audit committee and auditors and contributes to the literature on information processing by audit committee.

Keywords: COVID-19, Audit Committee, Communication, Videoconferencing

JEL Classification: M40, M42