비정상 감사보수와 이익조정: 계정분류를 통한 이익조정을 중심으로

This study examines the relationship between abnormal audit fees and earnings management through classification shifting, which is an earnings management tool used to classify core expenses as non-core expenses to overstate core earnings. Since classification shifting does not change net income, it involves lower litigation risk for auditors. As an individual utility-maximizer, an auditor may weigh the costs and benefits of each earnings management tools. Thus, the effect of audit fees on auditors’ incentives may depend on the form of earnings management. We examine the effect of abnormal audit fees on one earnings management tool with lower litigation costs (i.e., earnings management through classification shifting). Using a sample of 19,849 firm-year observations, we find following results. First, we find a significant and positive association between the degree of abnormal audit fees and the magnitude of classification shifting. Second, we find that the level of classification shifting is higher for the firms with positive abnormal audit fees. Third, there is a significantly positive association between the degree of abnormal audit hours and the magnitude of classification shifting. Lastly, we find that the level of classification shifting is higher for the firms with positive abnormal audit hours.