This study develops a new measure of accounting quality based on audit fees. Existing measures of accounting quality are typically based on realized earnings and earnings components. In this study, we consider the pre-audit risk, and examine the relationship between abnormal audit fees and low quality accounting. We find that our measure of unexplained audit fees correlates positively with poor accounting quality, and it can be used to provide an alternative measure of a firm’s accounting quality. In addition, this paper discusses how to explain the residual of audit fees from the predictive value of abnormal audit fees for restatements. The results suggest that fee residuals should be best interpreted as evidence of additional auditor effort on higher risk engagements rather than of the adverse impact of auditor rents on auditor independence.