경기 변동이 감사 보수 및 시간과 감사 품질에 미치는 영향

[Purpose] This study investigates the effect of business cycles on audit fee, audit hour and audit quality. In order to analyze whether audit fee, audit hour, and audit quality vary across business cycles, depending on auditor sizes, we also perform comparative analysis between Big4 auditors and Non－Big4 auditors. [Methodology] This study conducts regression analysis using the data of non－financial Korean firms listed on the KOSPI and KOSDAQ markets between 2011 and 2018. Also, the regression analysis was conducted by separating the samples according to whether firms were audited by the Big4 auditors or the Non－Big4 auditors. [Findings] We find that audit quality is lower during the recession periods compared to the boom periods, on average. However, since Non－Big4 auditors are more severely affected by fee pressure, compared with Big4 auditors, hourly audit fee of Big4 auditor is smaller than that of Non－Big4 auditors. This result implies that Big4 auditors try to maintain their audit efforts, despite of fee pressure during recession periods, relatively more than Non－Big4 auditors do. In addition, we find that lower audit quality during the recession periods appears only for Non－Big4 auditors. Overall, we suggest that lower audit quality during the recession periods is mainly attributed to Non－Big4 auditors. [Policy Implications] This study provides important policy implication for regulatory authorities that more intense oversight is required for Non－Big4 firms during economic depression periods.