감사보수와 회계이익의 질

Association between Audit Fees and Earnings Quality: The Case of KOSPI-Listed Firms

This study investigates the effect of audit fees on the earnings quality of listed in the Korean Stock Exchange (KOSPI) covering the period from 2007-2012 with 4,643 firm-year sample. Particularly, this paper focuses on lower audit fees because it results in lower audit quality. OLS test was done as to whether the lower audit fee is associated with low earnings quality. Results show that the lower audit fee increases the absolute value of discretionary accruals. But, the higher audit fee does not affect the absolute value of discretionary accruals. These findings suggest that lower audit fees reduce earnings quality and such results turned up to be robust after checking the results for robustness. This paper also tests the association between audit fees and earnings quality after controlling for the effects of non-audit fees then it is same result as that of without non-audit fees..