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Auditor gender, experience and reporting in nonprofit organizations

Anne-Mie Reheul (KU Leuven, Brussels, Belgium)
Tom Van Caneghem (KU Leuven, Brussels, Belgium and Universiteit Antwerpen, Antwerp, Belgium)
Machteld Van den Bogaerd (KU Leuven, Brussels, Belgium)
Sandra Verbruggen (KU Leuven, Brussels, Belgium)

Managerial Auditing Journal

ISSN: 0268-6902

Article publication date: 5 June 2017

Abstract

Purpose

The purpose of this study is to investigate the association between individual auditor characteristics (gender, experience and sector expertise) and audit opinions in Belgian non-profit organizations (NPOs). The purpose is to identify auditor characteristics that imply a better assurance of financial statement (FS) quality. FS quality is essential to enhance financial accountability toward the resource providers of NPOs and the public at large.

Design/methodology/approach

Multinomial regressions are conducted on a data set of Belgian NPOs. Propensity score matching is used to control for potential self-selection bias.

Findings

Auditors with sector expertise are found to provide better assurance than their non-sector-expert counterparts. The former are more likely to disclose FS errors and uncertainties in their audit report.

Originality/value

This study contributes to the auditing literature by focusing on an understudied audit market, namely, the non-profit audit market. The number of non-profit studies that investigate determinant of audit quality is very scarce, and none of them explores the determinants of audit opinions. Moreover, these studies ignore individual auditor characteristics as determinants of audit quality. The findings of this study provide meaningful information for several actors in the NP field and for audit firms.

Keywords

Citation

Reheul, A.-M., Van Caneghem, T., Van den Bogaerd, M. and Verbruggen, S. (2017), "Auditor gender, experience and reporting in nonprofit organizations", Managerial Auditing Journal, Vol. 32 No. 6, pp. 550-577. https://doi.org/10.1108/MAJ-01-2016-1296

Publisher

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Emerald Publishing Limited

Copyright © 2017, Emerald Publishing Limited