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The Impact of Employee Education Levels on Auditors’ Risk-Related decision-Making: Evidence from Listed Companies in China

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  • Caijie Zhu
  • Wanning Dou
  • Wenfei Qie

Abstract

The value of highly educated employees is increasingly recognized, as their ability to optimize information processing and external signal transmission may influence auditors’ risk-related decision-making. This study examines the impact of employee education levels on auditors’ risk assessments using data from A-share listed companies in Shanghai and Shenzhen Stock Exchanges from 2013 to 2022. It further explores the moderating role of internal control effectiveness in this relationship. The findings indicate that lower employee education levels are associated with higher audit costs, nonstandard audit opinions, and changes in audit relationships—suggesting these as auditors’ preferred risk-mitigation measures. Moreover, strong internal controls positively moderate the relationship between employee education levels and auditors’ risk-related decision-making.

Suggested Citation

  • Caijie Zhu & Wanning Dou & Wenfei Qie, 2025. "The Impact of Employee Education Levels on Auditors’ Risk-Related decision-Making: Evidence from Listed Companies in China," Emerging Markets Finance and Trade, Taylor & Francis Journals, vol. 61(14), pages 4445-4461, November.
    • Handle: RePEc:mes:emfitr:v:61:y:2025:i:14:p:4445-4461
    DOI: 10.1080/1540496X.2025.2514675
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