Male Auditors Research Articles

The role of women in auditing financial statements the importance of gender diversity in the board of directors to achieve the quality of financial reporting

Objective: The main objective of the study is to identify any effects of gender difference on the auditing profession in order to know the impact of gender (specifically female) on the quality of auditing, by studying the opinions of many professionals in the Iraqi environment, as well as identifying the obstacles that women may face during their performance of the auditing profession and identifying the special specifications that they can be characterized by to practice this profession.
 
 Methodology: The study was based on several hypotheses, the first hypothesis: that women outperform men in the skills that are most important to the auditing profession, the second hypothesis: there is an impact of the auditor's gender on the quality of audit work due to important barriers to entering the audit profession, the third hypothesis: that female auditors in partnership positions should show additional competence accordingly, we should expect these auditors to provide higher quality audit services on average than male auditors.
 
 Results: This study has proven that some social and cultural factors associated with the Saudi environment do not work in accounting and auditing firms. The field results have shown that there is a general weakness in linking curricula to professional requirements.
 Conclusion: There are many specifications required for the auditor, whether male or female, in terms of ethics, experience, professional specialization, scientific and practical qualification, and knowledge in other sciences, but the interaction with these specifications differs from one gender to another according to its nature and the circumstances surrounding it.

Career progression of women auditors in Tanzania: coping with the masculinity in audit firms

PurposeThis paper examines the career progression of women auditors working in auditing firms in Tanzania and the strategies employed by women auditors to cope with the masculine nature of audit firms.Design/methodology/approachData were collected through semi-structured, in-depth interviews with current and former female and male auditors in two auditing firms. A thematic approach to the analysis is adopted.FindingsThe study reveals that career progression of women auditors studied is constrained by gender-related barriers such as motherhood, pregnancy, maternity leave and limited coaching and networking, as well as household and caring responsibilities. These barriers are facilitated by the patriarchal system, which regards women as wives and mothers rather than professional workers. As a result, women auditors balanced work and family responsibilities by employing various coping strategies including establishing informal network organization, hiring nannies, living with family members, enrolling children to boarding schools and lobbying in the allocation of audit assignments. Despite employing these strategies, very few women reach top positions in audit firms in Tanzania.Practical implicationsThe findings reveal a need for wider engagement on the role of women and men in society, particularly to address the gender-related barriers faced by women in the accountancy profession.Originality/valueMost previous studies of gender in the accountancy profession have focused on Western contexts. This is one of few to examine the phenomenon in an African context.

Does gender affect qualifying decisions? Evidence from public sector audits

This study presents novel evidence of gender differencesinpublic sector audits. Auditors of public sector entities face lower litigation risks and lower market pressures than those ofprivate entities. Thus, our analysis is more likely to capture gender differences in professional competence than in economic incentives.We test the study hypotheses regarding gender differences in ‘qualifying’ audit reports using a sample of Spanish public universities (2010–2020). We find thatfemale and male auditors are equally likely to issue qualified opinions. However, their reasons for qualification differ, with womenbeing more likely to qualify reportsbecause of scope limitations. In joint audits, gender-diverse audit partners are more likely to increase scope limitations. These results suggest that women are more conservative than men are when assessing the impact of audit scope limitations, with no gender differences in responses to material misstatements.

Stimulants of behavioural change: accounting education schism and gender

PurposeThis paper aims to identify differences in auditors’ behaviour who have undergone work-integrated learning (WIL) versus the classical accounting education.Design/methodology/approachIn addition to the education factor, auditors’ perception is assessed in scenarios when facing time budget pressure and time deadline pressure. The gender factor is included to highlight any behavioural differences between male and female auditors. Senior auditors working at the Big Four firms in the UK have participated in this survey.FindingsThe results show, from an educational perspective, that traditional accounting program is perceived as a catalyst of dysfunctional audit behaviour in comparison to WIL program that demonstrated a higher degree of ethicality. Furthermore, the results identify male auditors as having more tendency to behaving dysfunctionally when compared to their female counterparts.Practical implicationsThis paper goes beyond assessing auditors’ ethical actions under work-related stresses, to identifying the differences in their behaviour based on their academic background. It can be used as a tool for audit practitioners and accounting faculty by highlighting the factors leading to dysfunctional behaviour and trying to mitigate them.Originality/valueThe added value of the research paper is that it sheds light on one of the most issues faced by auditors and employees in general. Time pressures embedded in most businesses can harm organizations badly in relation to the behaviour of their employees.

The relationships of personal, social and demographic factors on Chinese auditors’ intentions to accept unethical engagements

ABSTRACT This study aims to investigate the personal and social influences on Chinese auditors’ intentions to accept unethical engagements when faced with ethical dilemmas. The theory of reasoned action (TRA) is employed as the theoretical basis for the investigation. Personal factors (i.e. ethical ideologies) and social factors (i.e. Chinese interpersonal relationships, termed guanxi) are included in the TRA model to examine auditors’ intentions. A survey methodology is utilised in this study. The results from a sample of 306 auditors from several cities in China show that auditors’ idealism is positively associated with their attitudes towards the rejection of questionable engagements; conversely, relativism is negatively associated with their attitudes towards the rejection of questionable engagements. In addition, auditors’ guanxi orientations (i.e. favour-seeking and rent-seeking) are negatively associated with subjective norms, which suggests that auditors are aware that their close personal relationships with clients could be in conflict with their colleagues’ or supervisors’ expectations. In the further tests, this study controls for the effects of gender and region on auditors’ ethical intentions. The results indicate that female auditors may be more sensitive to ethical issues than male auditors, and auditors in southern China might adopt a more independent and fair perspective when confronted with ethical dilemmas. The findings can help managers better understand personal and social factors that influence their employees’ moral reasoning and adopt proper measures to enhance auditors’ ethical intentions.

PENGARUH GENDER, KOMPETENSI PROFESIONAL, PENGALAMAN AUDITOR TEHADAP AUDIT JUDGMENT DI KANTOR AKUNTAN PUBLIK PROVINSI BALI

This study aims to analyze the influence of gender, professional competence, and auditor experience on audit judgment at the Public Accounting Firm (KAP) in Bali Province. This study uses primary data obtained by distributing questionnaires to auditors who work at the Public Accounting Firm (KAP). The number of samples in this study were 63 auditors who work at the Public Accounting Firm (KAP) in Bali Province. The sample in this study was determined by purposive sampling method. The data analysis technique in this study used multiple linear regression analysis. In addition, all variables have been tested using the classical assumption test. The results showed that gender has no influence on audit judgment. Which means that there is no difference between female and male auditors in producing judgment. Professional competence has a positive and significant effect on audit judgment. Which means that the more competent an auditor is, the better the resulting audit judgment will be. Auditor experience has a positive and significant effect on audit judgment. Which means that an experienced auditor can produce a more precise audit judgment.

Investigating the Relationship between Organizational Culture in Auditing Institutions and Professional Judgment with Emphasis on Machiavellianism

The present study examines the relationship between the organizational culture of audit firms and their professional judgment. The main category studied in this study is the effect of Machiavellianism on the auditing profession. In the spring of 2021, it was distributed and collected among 130 independent auditors. This study showed that the components of Machiavellianism phenomenon is an effective variable in the field of auditing and this issue has significantly affected professional judgment at the level of the studied samples of the research community. This effect has been more intense with increasing the level of power and organizational position. Also, this study shows that the gender variable has a significant effect on professional judgment and Machiavellianism. In other words, the professional judgment of male auditors is more affected by Machiavellianism.

Performance appraisal and premature sign-offs and underreporting of chargeable time of external auditors – internal benchmarking of experience and gender

PurposeThe research paper investigates auditors' dysfunctional behaviors in relation to performance appraisals. It explores the dysfunctional audit behavior (DAB) differences among experienced/inexperienced and male/female auditors when expecting performance appraisals, how their perception of DAB changes and how their reactive-outcomes vary.Design/methodology/approachThe survey comprises statements pulled from performance appraisal templates used by the Big Four audit firms in the UK. The sample has been tested during two different periods to highlight variations in the perception of DAB.FindingsExperienced auditors become more tolerant of DAB compared to their perception when they were inexperienced. Inexperienced male auditors are generally more accepting of DAB compared to their inexperienced female counterparts. Experienced female respondents continue to be less accepting of DAB.Originality/valueThe study associates performance appraisal procedures with DAB. The analysis examines the perception of dysfunctional behavior according to the level of experience auditors (males and females) accumulate over time.

Is There a Trade-Off Between Accrual-Based and Real Earnings Management Activities in the Presence of (fe) Male Auditors?

Prior research suggests that the presence of high-quality auditors (i.e. proxied by audit firm characteristics) constrains accrual-based earnings management, but it inadvertently leads to higher real activities manipulation. We investigate whether such trade-off exists between accrual-based and real earnings management activities in the presence of female or male auditors. We use a sample of UK firms for the period 2009 to 2016 and find that firms audited by female auditors do not resort to a higher-level real activities manipulation when their ability to engage in accruals management is constrained. Overall, our results suggest that the benefits of hiring female auditors (i.e. less accrual-based earnings management) are overwhelmingly higher than the costs they might bring to the client firms (i.e. higher real activities manipulation).

Slipping on Stereotypes – Gender Effects in the Erosion of Ethical Behavior

Ethical outcomes in organizations can strongly be influenced by gender constellations and related stereotypical ascriptions in the workplace. In this paper, we investigate experimentally how people’s gender affects ethical outcomes in repeated same- or mixed-gender interactions. In our first study (N = 681), we apply a slippery slope auditing setting (Gino and Bazerman, 2009) in which an auditor takes an approval decision on the unethical behavior of an “estimator” (the audited firm) that emerges either suddenly – in an “abrupt treatment”, or gradually – in a “slip- pery slope” treatment. We find that in same-gender estimator-auditor constellations, there are no significant differences in auditors’ approvals of overestimated amounts between the abrupt and the slippery slope treatment. Strikingly, in mixed-gender constellations, we find significant opposite effects: when male estimators are audited by females, we observe a significant slippery slope effect, caused by a high approval frequency of overestimations in the slippery slope treat- ment. Contrarily, when female estimators are audited by a males, approval frequencies spike in the abrupt treatment. To better understand these findings, in a second study (N = 90), we asked participants which level of competence or honesty they ascribe to male and female esti- mators in the estimation task. Responses indicate that the detected slippery slope effect when male estimators are audited by females may be driven by female auditors ascribing more com- petence to male estimators, what becomes particularly relevant in the slippery slope treatment where unethical behavior is difficult to perceive. Further, our finding that male auditors are especially prone to approve overestimated amounts by females in the abrupt treatment, where unethical behavior becomes salient, might root in a more ethical evaluation of female estimates. Implications for organizations are discussed.

Effects of experience years, gender of auditors and audit firm size on firm’ discretionary accrual management: Evidence from Vietnam

The objective of this study is to examine the effects of audit firm size and auditor characteristics on firms’discretionary accruals management of companies listed on Ho Chi Minh Stock Exchange (HOSE) and Hanoi Stock Exchange (HNX). The results show that the gender of auditors affect discretionary accruals (DA). Female auditors approve DA at a lower value than male auditors. Number of experience years of auditors also affects restriction of DA. When the number of experience years of auditors increases, the magnitude of DA decreases, which means the quality of information on financial statements (FS) is higher. This study also reveals that the magnitude of DA is significantly lower amongst companies engaging a Big-4 specialist audit firm relative to companies using the audit services of a Non‐Big-4 specialist.

The effect of gender composition in joint audits on earnings management

PurposeThis paper aims to examine the association between gender composition of joint auditor pairs and the quality of reported financial information. More specifically, the authors attempt to assess whether and how these gender compositions affect the client firms’ earnings management behavior.Design/methodology/approachThe authors utilized the unique institutional setting of Taiwan, where joint auditors are required by law. They studied the effect of gender in joint auditor pairs on accrual earnings management and real earnings management to achieve financial reporting objectives.FindingsEmpirical results indicate that engaging a woman as the lead auditor can constrain accrual earnings management, regardless of whether the joint auditor is male or female. The authors also found that all-male signing auditor pairs with industry expertise can significantly reduce accrual earnings management. The authors also documented that all-female signing auditor pairs and auditor industry expertise could drive clients to engage in real earnings management activities as an alternative to accrual earnings management.Originality/valueThe empirical results demonstrate that gender indeed plays a role in the quality of client’s reported financial information. Female auditors in a lead position and male auditors with industry expertise tend to be more successful in delivering better-quality audits.

An Analysis of Auditors' Going-Concern Reporting Accuracy in Private Firms

The accuracy of audit reports is often viewed as a signal for audit quality. Prior research shows that in the context of going-concern reporting in audit markets dominated by public firms, some auditors are more accurate than others (e.g., Big N firms). This study is the first large-scale study that investigates going-concern reporting accuracy in an audit market dominated by private firms. The threat of reputation and litigation costs incentivizes auditors to report accurately in markets dominated by public firms, but such incentives are largely absent in markets dominated by private firms. Hence, reporting accuracy in such markets might not vary across auditors. Our main analysis is based on a sample of 1,375 Belgian firms that ceased to exist within one year from the financial statement date. Our results show that the frequency of Type II misclassifications does not vary across auditor types (Big 4 vs. non-Big 4, audit firm and partner industry specialists vs. non-specialists, more experienced vs. less experienced, and female vs. male auditors). Overall, these results cast doubt on the existence of quality differences among auditors in audit markets dominated by private firms.

Is there a gender effect on the quality of audit services?

Should we expect a gender effect on the quality of audit services? Both the behavioural economics literature and the glass ceiling for women in the audit profession suggest an affirmative answer to this question. We conduct the study with a sample of Spanish-listed companies for the period between 2008 and 2015 and use the quality of the client's financial statements as a proxy for the quality of audit services. The results provide sound and consistent support for a positive female auditor effect on the quality of audit services. Although our figures suggest that men and women tend to audit different types of clients, the results are not driven by these differences. Moreover, the gender effect occurs from the very first year of the appointment of a female partner to replace a male auditor. This study may contribute to challenging stereotypes and may be informative for the ongoing political debate regarding the under-representation of women in senior management levels.

An Analysis of Auditors' Going-Concern Reporting Accuracy in Private Firms

SYNOPSISThe accuracy of audit reports is often viewed as a signal for audit quality. Prior research shows that in the context of going-concern reporting in audit markets dominated by public firms, some auditors are more accurate than others (e.g., Big N firms). This study is the first large-scale study that investigates going-concern reporting accuracy in an audit market dominated by private firms. The threat of reputation and litigation costs incentivizes auditors to report accurately in markets dominated by public firms, but such incentives are largely absent in markets dominated by private firms. Hence, reporting accuracy in such markets might not vary across auditors. Our main analysis is based on a sample of 1,375 Belgian firms that ceased to exist within one year from the financial statement date. Our results show that the frequency of Type II misclassification does not vary across auditor types (Big 4 versus non-Big 4, audit firm and partner industry specialists versus non-specialists, more experienced versus less experienced, and female versus male auditors). Overall, these results cast doubt on the existence of quality differences among auditors in audit markets dominated by private firms.

Gender‐diverse audit partners and audit fee premium: The case of mandatory joint audit

This study empirically investigates the impact of auditor gender on audit fees in a unique audit regulatory environment, namely France, where joint audit is mandatory by law. Apart from the fact that male and female auditor engagement partners have distinctive behaviors and style, the question also arises at to whether coordination problems between two competing audit firms are exacerbated or mitigated by the presence of a female auditor in the joint auditor pair composition. This issue could be more challenging in the context of International Financial Reporting Standards adoption, which increases audit task complexity, audit risk, and audit effort required for an audit engagement. Using a matched sample of firms from the CAC All‐Shares Index listed on Euronext Paris from 2002 to 2010, we find that, when a female auditor is paired with a male auditor, the difference in audit fees stems not only from the presence of the female auditor partner but also from male–female interaction within the joint auditor pair composition. In a supplementary analysis, we show that the impact on audit fees of both the presence of a female partner and male–female auditor interaction is dependent, but in a different way, on the number of Big 4 audit firms in the auditor pair composition.

Does auditor gender influence auditor liability? Exploring the impact of the crime congruency effect on jurors' perceptions of auditor negligence

This study investigates the liability risk associated with auditors' personal and financial conflicts of interest, and the potential for differences in liability exposure based on the gender of the auditor. A survey-based experiment was performed with 160 jury-eligible participants who reviewed a scenario in which an auditor, the defendant, failed to detect and report fraudulent behavior on the part of a client. The plaintiffs in this case are investors in the company who sustained financial losses due to the fraud, asserting that the audit firm should be liable for damages. A 2×2 between-subjects experiment examined how the auditor's gender (male/female) and the motivations of the alleged conflict of interest (personal vs. financial) influence jury-eligible individuals' perceptions of the defendant's independence and liability for negligence and fraud. Results indicate that female auditors are perceived as less independent and more liable for a personal conflict of interest, compared to male auditors. Male auditors are perceived as less independent and more liable for a financial conflict of interest, compared to female auditors. Auditors, regardless of gender, were perceived as less independent and more liable for a personal conflict of interest compared to a financial conflict of interest. The outcome of this study could be utilized to educate audit firms on the potential risks of liability that could emerge in unanticipated areas, and to assist with audit planning and legal decisions.

Do Mother and Father Auditors Have Equal Prospects for Career Advancement?

This research investigates whether parental role and gender are associated with career advancement for professional female and male auditors employed by international audit firms in Denmark. Management at four levels, from partner to lower level non‐management employee, are examined to determine whether a relationship holds between being a parent and gender. We find that more parents achieve advancement to higher levels of employment than non‐parents. However, mothers are significantly disadvantaged relative to fathers in achieving senior levels of employment. There is no significant difference in the likelihood of career advancement between female and male auditors that are not parents implied by a lack of significant results for the gender variable in the regression analyses. Years of experience also significantly explains career advancement in the organization while age is significantly correlated with experience of the auditor.

The impact of gender difference on the interpretation of uncertainty expressions

PurposeThis study conducts an empirical examination of auditors’ interpretation of selected key uncertainty expressions, namely virtually certain, probable and unlikely, included in accounting standards.Design/methodology/approachThis paper adopts a survey research method to examine the impact of gender difference on the interpretation of uncertainty expressions. Professional auditors in China were selected to examine whether gender difference influences the interpretation of uncertainty expressions.FindingsThe results show that female auditors are likely to interpret positive or negative uncertainty expressions more conservatively than male auditors. The extent of conservatism is higher when female auditors are interpreting in-context expressions. The results remain similar after controlling for additional variables, such as education and work experience, which possibly affect the interpretation of probability expressions.Originality/valueThe results of this study suggest that gender difference can affect the numerical thresholds that auditors’ assign to uncertainty expressions. This may lead to different application of professional judgments between male and female auditors. It also provides important implications to regulators and practitioners on the quality of financial reporting and auditing across organizations within and across countries.

A Cross-Cultural Examination of Auditors' Willingness to Relocate in Public Accounting: Evidence from Hong Kong and the United States

This empirical study examines the determinants of factors influencing auditors' willingness to relocate nationally and internationally in public accounting on two cultural dimensions. This is the first study in the cross-cultural literature to examine this under-researched issue. A theoretical model is developed from family systems theory and social role theory. Logistic regression models (Models 1–16) are performed. While a cultural difference between auditors in the United States (US) and in Hong Kong (HK) might have been expected, we find similar results for both groups of auditors. Spouse willingness has the highest explanatory power among the family factor variables. Other family variables are also found to be significant. Male auditors are more willing to relocate nationally and internationally than female auditors. Furthermore, auditors' career plateau has the highest explanatory power among the organizational variables, followed by perceived organizational support and auditors' compensation. Our results support family systems theory and social role theory. A series of sensitivity analyses validate our main results and indicate the robustness of the findings. This study provides important implications for human asset accounting and the cross-cultural accounting literature.