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Research on the Relationship between Auditor’s Gender and Audit Fees

Author(s)

Jinfeng Zhang*

Affiliation(s)

School of Accounting, Guangzhou College of Commerce, Guangzhou, Guangdong, China *Corresponding Author.

Abstract

This thesis aims at how the auditors’ gender affects audit fees. Due to the economic system’s ongoing innovation in recent years, auditing has become a sophisticated and professional activities with rising hazards. Auditors are to blame for failing to identify these issues in a timely manner, as there has been a substantial rise in the number of investors and lenders who have lost money because of business bankruptcies or financial fraud in recent years. Auditors would increase audit fees when they consider the auditees are at high risk. Moreover, more and more academics then started to focus their research on the micro level, looking at the connection between an auditor’s personality traits and their response to audit risk. Studies on behavioral auditing have shown that auditor characteristics have a big impact on how well auditors perform. Based on the agency theory of audit demand, the hypotheses development is put forward between audit fees and auditors’ gender in this study. The study collects secondary data and analyze it completely. Besides, all the data processing and calculation process of the empirical study were completed by excel and stata15 which is elaborated. The CSMAR database is the sole source of information for this study. At last, 2,098 China listed companies in Shenzhen and Shanghai Stock Exchange whose accounting deadline is from 2013 to 2022 are selected as the research samples. It is concluded that Audit fees charged by female auditors are much higher, therefore auditors’ gender has a significantly positive effect on the audit fees. Strategists, regulators, and users of financial information can all profit from the findings. This study can offer a useful foundation for the development of an industry team and the training of auditor talent.

Keywords

Gender; Audit Fees; Financial Information; Personality Traits

References

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