Audit Fee Pressure and Audit Risk: Evidence from the Financial Crisis of 2008

• 발행기관: 한국회계정보학회
• 저자명: 선우혜정 안혜진 최아름
• 간행물 정보: 『한국회계정보학회 학술대회발표집』2015년 추계학술대회 발표집, 1~49쪽, 전체 49쪽
• 주제분류: 경제경영 > 회계학
• 파일형태: PDF
• 발행일자: 2015.11.01

영문 초록

Recent literature on audit fee reveals that auditors are under pressure to reduce audit fees during crisis (Goelz 2010; Ettredge et al. 2014). This paper investigates a novel aspect of auditor behavior: how the downward pressure on audit fees during crisis affects the audit fee structure, and how the association between audit fee pressure and audit fee structure is different among client types. The results, using Korean data for the period from 2005 to 2010, reveal the following: First, consistent with prior studies, audit fees dropped significantly during the financial crisis period, supporting the existence of downward pressure on audit fees. Second, among the determinants of audit fees, the coefficients on client size decreased significantly while those on client risk increased during crisis. These findings suggest that auditors respond differently to small clients and risky clients when facing downward pressure on audit fees. Finally, the abovementioned findings are more pronounced when the client is under high pressure to reduce expenses (i.e., when the client has deteriorating performance or the client is under financial constraint), suggesting that these clients are more likely to induce auditors to change the audit fee structure during crisis. Collectively, the above results provide useful insights into how auditors behave when they are under pressure to reduce audit fees.

목차

I. Introduction

II. Institutional Background and Hypotheses Development

III. Research Design

IV. Data and Descriptive Statistics

VI. Conclusion

References

키워드

audit fee audit risk financial crisis fee pressure