The Research Of Auditor Gender And Audit Quality

Audit quality is closely related to the economic interests of the vast number of investors. How to improve audit quality, to improve corporate governance and protect the investor’s economic interests, becomes the focus of the market participants. This paper examines the association between auditor gender and audit quality, and make further efforts to detect whether the proportion of independent directors could affect female auditors. We use absolute abnormal accruals as the proxy variable of audit quality, defined auditor gender as the gender of the firm’s audit engagement partner, and consider the impact of corporate governance, financial characteristics and auditor qualification. It can enrich our related research results, and also can provide an important theoretical support to audit quality improving.Based on the Asymmetric Information theory, the Principal-agent theory, the Gender Difference theory and the related previous research, we proposed research hypotheses. In order to do the research, we choose 9334 samples from 07-13 in Shanghai and Shenzhen stock markets; use the method of empirical research, such as Correlation Analysis, Univariate Test and Multivariable Linear Regression.The results suggest that firms with female audit engagement partners are associated with smaller abnormal accruals, thereby implying that female auditors restrain the earnings management. For a higher proportion of independent directors, female auditors have higher risk tolerance. So they can accept higher abnormal accruals. It means the proportion of independent directors could reduce the audit quality of female auditors.Finally, we point out the limitations of this paper, explain future research prospects, and also put forward the suggestion about how to improve audit quality from Auditors personal point.