Auditor Gender and Audit Quality in a Joint Audit Setting ; Le genre des commissaires aux comptes et la qualité de l'audit externe dans un contexte de co-commissariat

Abstract

In the context of rapidly increasing interest of regulators, legislators and academic research in the identity of audit engagement partners, this dissertation explores French mandatory joint audit environment where firms preparing consolidated financial statements are jointly audited by two independent audit firms. The composition of joint audit partners may include same gender audit partners (two male, two female) or gender-diverse audit partners (one male and one female). This dissertation aims to examine whether gender-diverse audit partners provide higher audit quality compared with same gender audit partners. We argue that gender-diverse engagement partners are more likely to promote effective monitoring and collaborative behavior with regard to audit process and may positively influence audit quality. We investigate the issue of audit quality by examining input- and output-based measures, namely, audit fees and discretionary accruals. We use data on French listed firms and apply appropriate econometrical procedures to alleviate concerns about endogeneity issues. The empirical findings show that gender-diverse audit partners charge 11% audit fee premium and their clients exhibit lower levels of absolute and signed discretionary accruals. Collectively, we provide considerable evidence that gender-diverse audit partners produce higher-quality audits. In the aftermath of gender quota legislation, the current dissertation also examines whether gender profile of audit clients affect the selection/assignment of gender-diverse audit partners. Contrary to the gender similarity (homophily) argument—based on comprehensive analyses of client-partner gender alignments—we provide compelling evidence that that female directors appointed to monitoring positions on the board, compared to female inside directors, tend to select higher quality "auditor pairs" (i.e., gender-diverse engagement partners). ; Dans le contexte de l'intérêt croissant des régulateurs, des législateurs et de la recherche universitaire pour l'identité ...