Female Audit Partners and Extended Audit Reporting: UK Evidence

Abdelfattah, Tarek and Elmahgoub, Mohamed and Elamer, Ahmed A. (2020) Female Audit Partners and Extended Audit Reporting: UK Evidence. Journal of Business Ethics. ISSN 0167-4544

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Abstract

This study investigates whether audit partner gender is associated with the extent of auditor disclosure and the communication style regarding risks of material misstatements that are classified as key audit matters (KAMs). Using a sample of UK firms during the 2013–2017 period, our results suggest that female audit partners are more likely than male audit partners to disclose more KAMs with more details after controlling for both client and audit firm attributes. Furthermore, female audit partners are found to use a less optimistic tone and provide less readable audit reports, compared to their male counterparts, suggesting that behavioural variances between female and male audit partners may have significant implications on their writing style. Therefore, this study offers new insights on the role of audit partner gender in extended audit reporting. Our findings have important implications for audit firms, investors, policymakers and governments in relation to the development, implementation and enforcement of gender diversity.

Item Type: Article
Identification Number: https://doi.org/10.1007/s10551-020-04607-0
Date: 15 September 2020
Uncontrolled Keywords: Auditor gender, Key audit matters, Gender differences, Extended audit reporting, Tone, Readability, UK
Subjects: N100 Business studies
N400 Accounting
Divisions: Faculty of Business, Law and Social Sciences > Birmingham City Business School > Department of Accounting, Finance and Economics
Faculty of Business, Law and Social Sciences > Birmingham City Business School > Centre for Applied Finance and Economics
Depositing User: Gemma Tonks
Date Deposited: 22 Sep 2020 11:05
Last Modified: 01 Oct 2020 11:45
URI: http://www.open-access.bcu.ac.uk/id/eprint/9932

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