Do female audit partners matter for audit quality? Evidence from Iran

IF 3.3 Q1 BUSINESS, FINANCE

Journal of International Accounting Auditing and Taxation Pub Date : 2025-05-25 DOI:10.1016/j.intaccaudtax.2025.100706

Javad Oradi , Naser Makarem , Reza Hesarzadeh

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Abstract

We examine the link between female audit partners and audit quality in Iran, a patriarchal country with significant gender disparity, especially in upper organizational ranks. We analyze data from firms listed on the Tehran Stock Exchange from 2011 to 2020, where audit reports are signed by two partners: the engagement partner and the review partner. We find that the presence of a female engagement partner is associated with higher audit quality, measured by modified audit opinions (MAOs), audit failures, and audit fees. We also find that female review partners are associated with a higher likelihood of issuing an MAO and fewer audit failures; however, their impact on audit fees is not significant. In addition, the combination of two male audit partners (without a female audit partner) is associated with lower-quality audits, suggesting that gender diversity at the top level of audit teams contributes to audit quality in the Iranian setting. Further analysis shows that the impact of female engagement partners on MAOs and audit failure (audit fees) is more pronounced if they are appointed by private (state) audit firms.

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女性审计合伙人对审计质量有影响吗？来自伊朗的证据

我们研究了女性审计合伙人与伊朗审计质量之间的联系，伊朗是一个性别差异显著的父权制国家，特别是在高层组织中。我们分析了2011年至2020年在德黑兰证券交易所上市的公司的数据，这些公司的审计报告由两个合伙人签署：审计合伙人和审查合伙人。我们发现，女性审计业务合伙人的存在与更高的审计质量（通过修改审计意见、审计失败和审计费用来衡量）相关。我们还发现，女性审核伙伴发布MAO的可能性更高，审核失败的可能性更小；然而，它们对审计费用的影响并不显著。此外，两名男性审计伙伴（没有女性审计伙伴）的组合与审计质量较低有关，这表明审计小组高层的性别多样性有助于提高伊朗环境下的审计质量。进一步分析表明，如果女性合伙人是由私营（国家）审计公司任命的，那么她们对MAOs和审计失败（审计费用）的影响更为明显。

本文章由计算机程序翻译，如有差异，请以英文原文为准。

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来源期刊

Journal of International Accounting Auditing and Taxation BUSINESS, FINANCE-

CiteScore

4.50

自引率

3.80%

发文量

期刊介绍： The Journal of International Accounting, Auditing and Taxation publishes articles which deal with most areas of international accounting including auditing, taxation and management accounting. The journal''s goal is to bridge the gap between academic researchers and practitioners by publishing papers that are relevant to the development of the field of accounting. Submissions are expected to make a contribution to the accounting literature, including as appropriate the international accounting literature typically found in JIAAT and other primary US-based international accounting journals as well as in leading European accounting journals. Applied research findings, critiques of current accounting practices and the measurement of their effects on business decisions, general purpose solutions to problems through models, and essays on world affairs which affect accounting practice are all within the scope of the journal.