주가급락위험이 감사시간과 감사보수에 미치는 영향

[Purpose] This study examines whether stock price crash risk increases auditors’ audit hours and audit fees. It is because the stock price crash occurs when firms’ bad news that managers concealed for a substantial period reveal and is considered a high potential information risk. [Methodology] This study analyzes audit hours and audit fees of 7,730 firm－year observations listed on the Korean Stock Exchange (KSE) from 2002 to 2017 and calculates stock price crash risk following Hutton et al.(2009). [Findings] First, audit hours and audit fees are positively associated with stock price crash risk. It means that auditors reflect the stock price crash risk when assessing their audit risk. Second, the above results hold when using abnormal values instead of audit hours and audit fees. Third, the stock price crash risk in the past periods also has a significant effect on the audit hours and audit fees in the current period. This result indicates that auditors also include the stock price crash risk of the past period when appraising audit risk in the current period. [Implications] This study shows that the stock price crash risk of auditee firms affects auditors’ decision－making. It is known that auditors reflect the characteristics of the auditee firms on their audit risk. On the other hand, we find that auditors evaluate the indirect risk of auditee firms such as stock price crashes which is not identified by the auditors and just observed in the stock market as well.