Abnormal Audit Fees and Accrual and Real Earnings Management: Evidence from UK

The purpose of this study is to examine the relationship between abnormal audit fees and accrual based and real based earnings management using a sample of 1,055 UK firm year observations from 2006 to 2015. Linear regression was used to test the hypothetical relation between abnormal audit fees and accrual and real earnings management. Following prior research several proxies have been used to measure abnormal audit fees, accrual earnings management, and real earnings management.