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This research paper investigates variances in auditors’ attitudes toward dysfunctional audit behavior (DAB) in two different time periods. The purpose of this paper is to explore changes in DAB among experienced/inexperienced auditors as well as differences between male/female auditors while facing time budget and time deadline pressures.

This study uses surveys administered to a group of junior auditors joining a Big 4 firm in the UK and compares the results to surveys completed by the same group of auditors after three years of experience. The survey assesses participant’s perception of DAB in the presence of time budget and time deadline.

The results of this paper show that experienced auditors have more tolerant views of DAB then inexperienced auditors. In terms of gender, inexperienced male auditors are more accepting of DAB when compared to their inexperienced female counterparts. Female auditors surveyed in both time periods seem to be unfavorable of DAB.

The uniqueness of this study derives from the fact that it explores the same group of auditors and assesses variances in their perception of DAB in two different periods over a passage of three years during which inexperienced auditors become experienced.

This study aims to explore the auditors’ responses to the COVID-19 pandemic in Egypt, with a focus on how their demographic characteristics – specifically gender, work experience and audit firm size – affect their ability to identify key audit matters (KAMs).

The study used exploratory factor analysis to develop an index for evaluating auditors’ proficiency in distinguishing KAMs from non-KAMs, followed by multivariate regression analysis to analyze the impact of auditors’ demographics on this ability.

The study’s findings are significant as they highlight the influence of auditors’ gender and work experience on their capability to correctly classify KAMs. However, the size of the audit firm showed no significant effect on the auditors’ decision-making efficacy in identifying KAMs.

While the study illuminates critical aspects of audit judgment during unprecedented times, it acknowledges limitations, including its geographical focus on Egypt and reliance on self-reported data. The implications stress the need for audit firms and regulators to consider auditors’ demographic characteristics when formulating policies to enhance audit quality and reliability during crises.

This research breaks new ground in the auditing literature by shedding light on the distinct role of auditor demographics in shaping audit opinion during crises. It is one of the pioneering studies to quantitatively assess the impact of auditors’ gender, experience and firm size on KAM identification in a global health crisis. It provides a unique perspective on audit practices in emerging economies.

This paper aims to investigate whether female directors of companies are more likely to appoint audit firms (AFs) with women in high-level positions adopting monitoring, reputation and homophily theories.

The paper uses ordinary least square to test the hypotheses using a unique hand-collected data set obtained from various sources. To mitigate potential endogeneity and selection bias issues, system generalized method of moments (GMM) and Heckman two-stage procedures are used. Additionally, alternative independent and dependent variables are created to strengthen the validity of main results.

The findings show that female directors are more likely to appoint AFs with women in high-level positions. Non-independent female directors, compared to independent ones, are particularly inclined to do so. These results are supported by further analyses using system GMM, Heckman two-stage procedures and alternative variables.

This study examines how female directors influence companies’ choices of AFs with women in high-level positions. It introduces unique audit firm governance proxies and variables specific to developing countries. The study also controls for various corporate governance, company and audit firm characteristics.

The literature on the influence of audit committees (AC) and cosmetic accounting (CA) is scarce. AC plays a unique and vital role in boosting earnings reliability in countries with weaker application of accounting standards or weaker legal protection for investors. AC, therefore, are considered to be one of the essential tools available to directors in supervising management decisions regarding financial reporting. This paper aims to examine the influence of AC characteristics (ACC) on CA and how this relationship is moderated by the audit fee.

This study used probit regression to analyze 1,218 firm-year observations of listed companies in Tehran Stock Exchange from 2014 to 2020.

The results show that AC financial accounting expertise, AC independence, female AC membership and AC tenure were negatively related to CA. The negative relationship is highly pronounced when a firm incurs higher audit fees, and audit fees moderate the relationship between ACC and CA. Results for the robustness checks show that only AC independence was significant, and the results of other characteristics were not significant.

This research was conducted in an Iranian setting where the formation of ACs is on the verge of regulation; therefore, the data used for the study only contains the seven-year period of ACs’ statutory activity. In addition, a lack of consensus on the precise measures of an AC’s effectiveness could be considered as a restrictive factor.

The findings provide an initial insight into the effect AC on CA and moderating effect of audit fee on the relationship between ACC and CA.

This study aims to examine the influence of board gender diversity on audit quality demand, considering auditor choice and audit efforts within the Gulf Co-operation Council (GCC) countries. It further examines the role of political connections and the impact of gender equality policy initiatives on this relationship.

Fixed-effects regression models are employed in a sample of 1,822 firm-year observations for financial firms across the GCC from 2011–2022 to test the hypotheses. Moreover, the two-stage-least-squares and the propensity score matching methods are used for sensitivity analysis.

The study shows a negative relationship between board gender diversity and the demand for audit quality, reflected auditor choice and audit efforts. However, the study shows a positive association between firm’s political connections and audit quality demand, which is more pronounced in gender-diverse boards. Policy initiatives for gender equality show no significant effect on the relationship between board gender diversity and audit quality demand.

The results inform governments, policy-makers, regulatory authorities and corporations by providing new evidence on the relationship between board gender diversity and the demand for audit quality, as well as the moderating role of political connections and policy initiatives in this relationship. To promote the meaningful participation of female directors in board decision-making, the findings indicate that gender stereotypes, both explicit and implicit, that can hinder female directors’ influence in board decision-making need to be addressed. Second, the study underscores for governments, policy-makers regulatory authorities and corporations that the mere appointment of female directors does not necessarily ensure their engagement in board decision-making. The appointment of female directors should go beyond symbolism and translate into meaningful engagement and influence with the board.

This study contributes to the corporate governance literature by offering new insights on the link between board gender diversity and the demand for audit quality. Beyond confirming a negative relationship between board gender diversity and the demand for quality audit, this study provides new insights on the moderating role of a firm’s political connections on this relationship. In addition, existing studies are primarily based on firms in Western countries and cannot be generalized due to differences in governance and legal structures. Given that the GCC countries have different cultures, economies, institutions, governance practices and norms compared to developed and emerging countries, our study offers a pertinent discussion on the relationship between board gender diversity and the demand for audit quality, as well as the moderating role of political connections in this relationship in the GCC countries.

This study aims to investigate whether gender diversity in audit committees affects the purchase of nonaudit services in China. Results from family and nonfamily firms are compared and the critical mass participation of females are further examined.

The sample comprises 1,834 Chinese listed companies from 2012 to 2021, among which 910 are family firms. The Heckman (1979) two-stage model is used to mitigate the potential endogeneity issue in the selection of gender diversity. Propensity score matching is also used to further alleviate the endogeneity problem in relation to family firms.

Results show a significant and negative correlation between the gender diversity in audit committees and nonaudit service fees. This association is more apparent in nonfamily than in family firms. Findings are consistent and robust to endogeneity tests and sensitivity analyses. The analysis of critical mass and symbolic participation shows that three female directors can more significantly restrain nonaudit fees than one to two females on the board.

This study contributes to literature on resource dependence theory, which posits that audit committees help enterprises establish contact with auditors, improve the company legitimacy, assist in communication and provide relevant expertise. This study also relates to agency theory, which holds that differences in the severity of types I and II agency problems between family and nonfamily firms lead to differences in auditor selection and related costs.

Extending from previous research on the relation between the gender diversity in audit committees and nonaudit fees, the present study delves into this connection within the context of China, an emerging economy. As a result, this investigation offers novel insights and expands upon current knowledge. In addition, the correlation between the gender diversity of audit committees and nonaudit fees is explored for family and nonfamily firms.

Despite the acknowledged significance of the relationship between audit fees and corporate philanthropic initiatives, the existing literature has not yet reached the desired level of providing explicit evidence on how this relationship can be moderated by board gender diversity. This paper aims to contribute to the ongoing debate by using a panel data set comprising 905 Chinese listed firms over a five-year period from 2015 to 2019.

To generate solid findings and overcome the potential endogeneity bias, various econometric estimators, namely, ordinary least squares, two-step generalized method of moments, robust two-stage least squares and subsample analysis, have been carefully used. More interestingly, the study’s results remain consistent across different estimation methods.

The results reveal a statistically significant positive link between audit fees and corporate charitable giving. More interestingly, this connection strengthens with a higher representation of women directors on the board, particularly when there are three or more female directors. Furthermore, the results suggest that nonstate-owned firms exhibit greater motivation to participate in charitable giving initiatives compared to state-owned counterparts.

Stakeholders from various groups should attentively recognize the importance of gender-diverse boards as a dynamic factor impacting the association between audit fees and corporate charitable giving.

To the best of the authors’ knowledge, the crushing majority of the preceding research has not delved deeply into the critical role of board gender diversity in the relationship between audit fees and corporate charitable donations. Hence, this study provides a profound understanding of how audit fees predict corporate philanthropic initiatives.

This study aims to investigate whether there is a relationship between the religiosity levels of chairpersons’ hometowns and the financial reporting quality of companies.

Using a unique hand-collected data set obtained from various sources, the authors use ordinary least squares and logistic regressions to test the hypotheses and further implement various methods to address potential issues such as omitted variables, reverse causality and selection bias problems. In addition, the authors control for the religiosity level of chief executive officers’ (CEOs) hometowns. Finally, the authors divide the sample into two subsamples – companies with strong corporate governance and companies with weak corporate governance – to investigate the effect of chairpersons’ hometown religiosity on financial reporting quality under strong or weak corporate governance.

The findings demonstrate that companies with chairpersons from religious hometowns produce high-quality financial reports. Additional tests, such as the Heckman selection model and instrument variable regression, confirm the robustness of the main results. Controlling for the religiosity level of the CEO’s hometown yields consistent findings with the main results. Finally, additional results indicate that the religiosity levels of chairpersons’ hometowns play a significant role in enhancing financial reporting quality in companies with weak corporate governance.

Companies should consider appointing board members or chairpersons from more religious hometowns, as the empirical results of this study support the positive effects of chairpersons’ hometown religiosity on financial reporting quality.

To the best of the authors’ knowledge, the current study is among the first to demonstrate the relationship between the religiosity level of the chairpersons’ hometown and the financial reporting quality of companies. The study introduces unique hometown religiosity proxies and controls for various variables related to corporate governance, chairperson attributes, company characteristics, and audit firm characteristics.

This study explores how auditors' emotions, specifically negative moods triggered by flight delays, impact auditing quality.

Utilizing flight delays during audit assignments as a mood indicator, weather conditions at departure airports serve as an instrumental variable to provide a robustness check between flight delays and audit outcomes, employing a two-stage least squares model.

The findings suggest that such negative moods improve auditing effort and quality, as evidenced by reduced future accounting restatements and increased audit fees. The positive effect of flight delays on auditing quality is consistent across different tests and measures.

This study highlights the significance of auditors' emotional states on their professional performance, indicating a unique angle on auditing quality research by focusing on the emotional well-being of auditors as influenced by external factors such as flight delays.

This paper aims to examine the impact of female board directorship on the quality of key performance indicators voluntary disclosure (hereafter QKPI). Further, this paper explores whether the presence of family board members mitigates the female directors’ effect on the QKPI.

This study explores closely held family firms listed on the CAC All-Tradable during 2015–2022.

The initial findings provide consistent evidence indicating a positive association between female board directorship and the QKPI. However, testing for the moderating effect of family board members on the linkage between female representation in the company’s boardroom and the QKPI reveals a negative relation.

This study focuses on gender equality in French-listed companies, a topic that has received little attention from researchers. The country and the period considered in this paper are noteworthy characteristics that enhance the value of this research. This study sheds light on issues concerning the 2016 law that requires quotas for women on boards of directors in French firms.