잠재적 소송위험이 비감사서비스보수 및 총보수에 미치는 영향

Abstract

This study is an empirical research on the effect of potential lawsuit risk of on non-audit service fees and total fees. According to prior studies, judgments of outside experts such as insurance companies or credit ratings agencies who hold a dominant position in risk assessment are being used as measurements of lawsuit risks. And preceding studies showed that there is positive relation between potential lawsuit risks and audit fees. But when audit firms are difficult to reflect potential lawsuit risks through audit fees, it is possible for audit firms to reflect potential lawsuit risks through non-audit service fees as a detour method. Therefore it is the characteristic contribution of this study to positively verify whether the auditor is reflecting potential lawsuit risks through not only the audit fees but also through the increase in non-audit service fees. According to results of this study, we were able to conclude that like results of preceding studies even after controlling the existing decisive factors of audit fees, potential lawsuit risks have a favorable relationship with audit fees. Results also show that there are positive relationship between non-audit service fees(tatal service fees) and the Director’s and Officer’s Liability & Company Reimbursement Insurance Fees and credit assessment grades which were established as measurements of potential lawsuit risk. these mean that audit firms are considering non-audit service fees as a detour method when they are difficult to fully reflect potential lawsuit risks by using audit fees.