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Female Audit Partners and Extended Audit Reporting: UK Evidence

Author

Listed:
  • Tarek Abdelfattah

    (University of Portsmouth
    Mansoura University)

  • Mohamed Elmahgoub

    (Birmingham City University
    Mansoura University)

  • Ahmed A. Elamer

    (Brunel University London
    Mansoura University)

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.

Suggested Citation

  • Tarek Abdelfattah & Mohamed Elmahgoub & Ahmed A. Elamer, 2021. "Female Audit Partners and Extended Audit Reporting: UK Evidence," Journal of Business Ethics, Springer, vol. 174(1), pages 177-197, November.
    • Handle: RePEc:kap:jbuset:v:174:y:2021:i:1:d:10.1007_s10551-020-04607-0
    DOI: 10.1007/s10551-020-04607-0
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    1. Duboisée de Ricquebourg, Alan & Maroun, Warren, 2023. "How do auditor rotations affect key audit matters? Archival evidence from South African audits," The British Accounting Review, Elsevier, vol. 55(2).
    2. Bustos-Contell, Elisabeth & Porcuna-Enguix, Luis & Serrano-Madrid, José & Labatut-Serer, Gregorio, 2022. "Female audit team leaders and audit effort," Journal of Business Research, Elsevier, vol. 140(C), pages 324-331.

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