감사시장경쟁이 감사보수 경직성에 미치는 영향

Auditors may face lawsuits, regulatory sanctions, economic losses and image damage after auditing an firm with high audit risk. It is reported that audit fee stickiness, which puts more audit effort to reduce these economic and non－economic losses, but does not incorporate additional effort into audit fees. In the previous research, it has been reported that the monopoly of the audit market causes economic inefficiency in pricing. This means that competition in the audit market affects price. If the monopoly in the audit market affects higher prices, higher competition will lower the price. In such a situation, it is possible that a possibility that audit fees will become more sticky as audit fees are not reflected in the audit fees. This paper examines the effect of audit market competition on the relationship between audit risk and audit fee stickiness. The hypothesis was tested on 8,035(firm/year) listed on the KOSPI market from 2002 to 2016. The results show that audit market competition has a negative effect on the relationship between audit risk and audit fee stickiness. In addition, the yearly analysis also confirmed that negative effect were observed in most the years. These results support the hypothesis that additional audit effort is not reflected in the price in the audit market where there is high competition. This implies that audit fee stickiness may vary depending on the industry, which has implications for academics involved in the related research, and suggests that supervisory authorities may be able to reduce audit quality.