부산대학교 도서관

This study analyzed the effects of auditor's characteristics on the relationship between real earnings management and audit time for KOSDAQ market. To empirically analyze hypotheses of this study, 6,524 firm-year observations were collected from Korean firms listed on the Korea Securities Dealers Automated Quotations(KOSDAQ) over the period from 2007 to 2015. The results of the analysis are as follows. First, industry specialist auditors put more audit hours than non-industry specialist auditors when the level of real earnings management of audited firms is larger. Second, Big4 auditors spent more audit hours than non-big4 auditors when the level of real earnings management of audited firms is larger. This result can be interpreted as increasing auditing hour in order to better understand the real earnings management of audited firms and thus increase the audit risk in case of industry specialist auditors or Big4 auditors with high audit quality. This study is meaningful in that it provided empirical evidence that the auditor 's response to the real earnings management is discriminatory according to the characteristics of the auditor.