Audit Partner Gender, Gender Diversity in the Board and Audito Report Log

Devi Sulistyo Kalanjati, Ramadhan Ghea Ananda Putra, Mohamad Khoirul Anam

Abstract


ABSTRACT This research investigates the impact of audit partner gender on audit report lag and explores whether the gender diversity of the board of directors can moderate this relationship. The study was motivated by the low representation of female audit partners in Indonesia and the need for a more efficient audit process. The research used a quantitative approach and focused on non-financial companies listed on the Indonesia Stock Exchange (IDX) from 2017 to 2021. The sample size was 2,430 observations (company-years) and was determined using the purposive sampling. The results indicated a positive association between female audit partners and audit report lag, suggesting that female audit partners may conduct more detailed audit work, leading to longer processing times than male audit partners. Additionally, the gender diversity of the board of directors was found to weaken the influence of the gender of audit partners on audit report lag. Collaboration between female audit partners and a board of directors comprising females may promote a more efficient audit process. The study suggests that regulators and professional organisations could consider implementing quotas to encourage greater female participation in the audit process.

Keywords


Female audit partners, Gender Diversity, Audit Report Lag

References


Ashton, R. H., Willingham, J. J., & Elliott, R. K. (1987). An empirical analysis of audit delays. Journal of Accounting Research, 275–292.

Alkebsee, R. H., Habib, A., Huang, H. J., & Tian, G. (2022). The gender‐diverse audit committee and audit report lag: Evidence from china. International Journal of Auditing, 26(2), 314-337.

Blankley, A. I., David N. Hurtt, & Jason E. MacGregor. (2012). Abnormal Audit Fees and Restatements. Auditing, 31(1), 79–96.

Betz, M., O'Connell, L., & Shepard, J. M. (1989). Gender differences in proclivity for unethical behaviour. Journal of Business Ethics, 8, 321–324.

Birnberg, J. G. (2011). A proposed framework for behavioural accounting research. Behavioral Research in Accounting, 23(1), 1–43.

Boshoff, C., & Wesson, N. (2019). A comparison of quartile calculation methods to measure audit report lag. Management Dynamics: Journal of the Southern African Institute for Management Scientists, 28(2), 14–27.

Breesch, D., & Branson, J. (2009). The effects of auditor gender on audit quality. IUP Journal of Accounting Research & Audit Practices, 8.

Byrne, D. (1971). The attraction paradigm. Academic Press.

Chalu, H. (2021). Board characteristics, auditing characteristics and audit report lag in African Central Banks. Journal of Accounting in Emerging Economies, 11(4), 578–609.

Chung, J., & Monroe, G.S. (2001). A research note on the effects of gender and task complexity on an audit judgment. Behavioral Research in Accounting, 13(1), 111–125.

Cohen, J.R., Dalton, D.W., Holder-Webb, L.L., & McMillan, J.J. (2020). An analysis of glass ceiling perceptions in the accounting profession. Journal of Business Ethics, 164, 17–38.

Dang, Li, Kevin F. Brown, & B. D. McCullough. (2011). Apparent Audit Failures and Value Relevance of Earnings and Book Value. Review of Accounting and Finance, 10(2), 134–54.

Dawson, L. M. (1997). Ethical differences between men and women in the sales profession. Journal of Business Ethics, 16(11), 1143–1152.

DeFond, M., & Zhang, J. (2014). A review of archival auditing research. Journal of accounting and economics, 58(2–3), 275–326.

Francis, B., Hasan, I., Park, J. C., & Wu, Q. (2015). Gender differences in financial reporting decision making: Evidence from accounting conservatism. Contemporary Accounting Research, 32(3), 1285–1318.

Gul, F. A., Wu, D., & Yang, Z. (2013). Do individual auditors affect audits quality? Evidence from archival data. The Accounting Review,88(6), 1993–2023.

Hao, J., Pham, V., & Guo, M. (2021). The gender effects of audit partners on audit outcomes: Evidence of rule 3211 adoption. Journal of business ethics, 1–30.

Hardies, K., Breesch, D., & Branson, J. (2013). Gender differences in overconfidence and risk taking: Do self-selection and socialization matter? Economics Letters, 118(3), 442–444.

Hardies, K., Breesch, D., & Branson, J. (2016). Do (fe) male auditors impair audit quality? Evidence from going-concern opinions. European Accounting Review, 25(1), 7–34.

Ho,S.S., Li, AY, Tam, K., & Zhang, F. (2015). CEO gender, ethical leadership, and accounting conservatism. Journal of Business Ethics, 127, 351–370.

Huang, T., Huang, H., & Lee, C. (2014). Corporate executive's gender and audit fees. Managerial Auditing Journal, 29(6), 527-547.

Ittonen, K., Vähämaa, E., & Vähämaa, S. (2013). Female auditors and accruals quality. Accounting Horizons, 27(2), 205–228.

Khan, W.A., & Vieito, J.P. (2013). CEO gender and firm performance. Journal of Economics and Business, 67, 55–66.

Khlif, H., & Achek, I. (2017). Gender in accounting research: A review. Managerial Auditing Journal, 32(6), 627–655.

Lee, H.S., Nagy, A.L., & Zimmerman, A.B. (2019). Audit partner assignments and audit quality in the United States. The Accounting Review, 94(2), 297– 323.

Lehman, C.R. (1992). “Herstory” in accounting: The first eighty years. Accounting, Organizations and Society, 17(3–4), 261–285.

Mason, E. S., & Mudrack, P. E. (1996). Gender and ethical orientation: A test of gender and occupational socialization theories. Journal of Business Ethics, 15, 599–604.

Mathuva, D. M., Tauringana, V., & Owino, F. J. O. (2019). Corporate governance and the timeliness of audited financial statements: The case of Kenyan listed firms. Journal of Accounting in Emerging Economies, 9(4), 473–501.

Nasution, D., & Jonnergård, K. (2017). Do auditor and CFO gender matter? earnings quality? Evidence from Sweden. Gender in Management: An International Journal.

Nekhili, M., Chakroun, H., & Chtioui, T. (2018). Women's leadership and firm performance: Family versus nonfamily firms. Journal of Business Ethics, 153, 291–316.

Ocak, M., & Özden, E. (2018). Signing auditor-specific characteristics and audit report lag: A research from Turkey. Journal of Applied Business Research.

O'Connor, M. A. (2006). Women executives in gladiator corporate cultures: The behavioural dynamics of gender, ego, and power. Md. L. Rev., 65, 465.

O'Donnell, E., & Johnson, E.N. (2001). The effects of auditor gender and task complexity on information processing efficiency. International Journal of Auditing, 5(2), 91–105.

Srinidhi, B., Gul, F. A., & Tsui, J. (2011). Female Directors and Earnings Quality. Contemporary Accounting Research, 28(5), 1610–1644.

Wang, L.-H., & Fung, H.-G. (2022). The effect of female CEOs and CFOs on the tail risk and firm value. Finance Research Letters, 47, 102693.

Yang, S., Liu, Y., & Mai, Q. (2018). Is the quality of female auditors really better? Evidence based on the Chinese A-share market. China Journal of Accounting Research, 11(4), 325–350.

Ye, K., Zhang, R., & Rezaee, Z. (2010). Does top executive gender diversity affect earnings quality? A large sample analysis of Chinese listed firms. Advances in Accounting, 26(1), 47–54.

You, D., Maeda, Y., & Bebeau, M. J. (2011). Gender differences in morals sensitivity: A meta-analysis. Ethics & Behavior, 21(4), 263–282.




DOI: http://dx.doi.org/10.20961/jab.v24i1.1304

Jurnal Akuntansi dan Bisnis (JAB)
ISSN 1412-0852 (print), 2580-5444 (online)
Published by Accounting Study Program, Faculty of Economics and Business, Universitas Sebelas Maret, Indonesia


Creative Commons License
JAB on http://jab.fe.uns.ac.id/index.php/jab is licensed under a Creative Commons Attribution-ShareAlike 4.0 International License

Visitor Statistic