Does gender composition of audit teams matter? An examination of audit quality and audit cost

Joshua A. Khavis, Amy G. Sheneman, Brandon Szerwo

Review of Accounting Studies · 2025 · Volume 31 · Issue 1

Abstract

We examine the relation between the gender composition of audit teams and two important audit outcomes—audit quality and audit fees. We identify gender composition across auditor ranks with novel audit-office level data for 20 large U.S. public accounting firms from 2010 to 2018. We find engagements of audit offices with more female auditors are associated with higher audit quality and lower audit fees. We find the association between gender composition and audit outcomes is strongest at the staff level, and among audit seniors in particular. The results also strengthen in offices with more supportive workplace environments. Overall, our large-scale evidence provides important insights on the role of gender composition of audit teams.

Keywords

Audit quality, Audit fees, Audit teams, Human capital, Female auditors, Audit partners

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