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Auditor Skill Demands and Audit Quality: Evidence from Job Postings

Author

Listed:
  • Charles Ham

    (Kelley School of Business, Indiana University, Bloomington, Indiana 47405)

  • Rebecca N. Hann

    (Robert H. Smith School of Business, University of Maryland, College Park, Maryland 20742)

  • MaryJane Rabier

    (Olin Business School, Washington University in St. Louis, St. Louis, Missouri 63130)

  • Wenfeng Wang

    (College of Business, Southern University of Science and Technology, Shenzhen 518055, China)

Abstract

This study empirically examines the relation between audit quality and auditors’ cognitive and social skills. Using a novel data set of online job postings by accounting firms, we document substantial variation in the stated demand for auditors’ cognitive and social skills, suggesting that audit offices are not homogeneous in their preferences for such skills. We find a positive relation between audit quality and the prevalence of cognitive and social skills within an audit office’s job postings. This association is stronger for audit engagements that are more complex or require greater coordination, suggesting that cognitive and social skills are particularly important in engagements where effective communication and knowledge transfer, as well as sound professional judgment and skepticism, are needed. The association is also stronger for audit offices with greater investments in new technology, consistent with the complementary relation between cognitive and social skills and the use of technology. Overall, our study offers empirical evidence linking specific auditor skills to audit quality.

Suggested Citation

  • Charles Ham & Rebecca N. Hann & MaryJane Rabier & Wenfeng Wang, 2025. "Auditor Skill Demands and Audit Quality: Evidence from Job Postings," Management Science, INFORMS, vol. 71(7), pages 5805-5829, July.
    • Handle: RePEc:inm:ormnsc:v:71:y:2025:i:7:p:5805-5829
    DOI: 10.1287/mnsc.2022.01640
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