An Empirical Study of the Impact of Auditors' Industry Expertise and Abnormal Audit Fees on Audit Quality

• Main Authors: CHEN, WAN-CHIH, 陳婉芝
• Other Authors: SHIH, TAI-CHENG
• Format: Others
• Language: zh-TW
• Published: 2019
• Online Access: http://ndltd.ncl.edu.tw/handle/6ts83m

碩士 === 輔仁大學 === 會計學系碩士班 === 106 === This purpose of study is to investigate whether the auditors’ will pay the abnormal audit fees lower or higher than expected, which will result in loss its independence and allow management authority to have large earnings management affecting audit quality. On the other hand, whether CPA firms have industry expertise allowing corporate engage in less earnings management. Considering that impact of the abnormal fees and the CPA firms’ industry expertise both interaction, whether it will be decreased in corporate earnings management and improve audit quality. 　　This study uses discretionary accruals as the proxy variable for audit quality. The abnormal audit fees, abnormal total fees and fee ratio to clarify the impact of abnormal audit fees on management earnings. This study also consider whether CPA firms’ industry expertise can restrain corporate earnings management. Empirical results show that the auditors’ service fees is measured by the fee ratio, it has positive relationship with earnings management. The higher the proportion of nonaudit fees to the total fees, the more earnings management is allowed, indicating that CPA firms’ economic bonding. It is also significant indicateing that the auditors’ fees are related to the discretionary accruals. The fee ratio has negative corrected with CPA firms’ industry expertise.When auditors have industry expertise allow the authority to engage in less earnings management. The interaction between auditor industry expertise and auditors’ service fees, when the auditors’ service fees is measured by the fee ratio, the negative relationship between both, which proves that the earnings management has decreased due to auditor s’ industry expertise.