Audit partner characteristics, career advancement and audit quality in the USA
ISSN: 0268-6902
Article publication date: 21 December 2022
Issue publication date: 16 March 2023
Abstract
Purpose
This study aims to explore the relation among US audit partners’ characteristics, their career advancement and audit quality.
Design/methodology/approach
This study uses data from Public Company Accounting Oversight Board Form AP, Auditor Reporting of Certain Audit Participants, and publicly available online data sources. The hand-collected data on audit partners’ personal characteristics include gender, work experience and educational background. The measures for audit quality include restatements and audit fees.
Findings
The authors find that audit partner characteristics matter for the time it takes an individual to reach partnership after completing a bachelor’s degree. There are significant differences in work experience and educational background between partners in the largest (Big N) audit firms and smaller (non-Big N) audit firms. Audit partner traits are related to audit quality, and the effects differ between Big N and non-Big N partners.
Originality/value
The literature has examined audit partners’ career paths using international data. However, little empirical academic research has examined the career advancement of US audit partners. This study provides initial insights on the career advancement of US partners on a large scale and complements the recent research that examines audit partner characteristics and audit quality in the US market.
Keywords
Acknowledgements
The authors appreciate the helpful comments of Leah Muriel and the other conference participants at the 2020 AAA Annual Meeting.
Data availability: Data are publicly available from sources identified in the article.
Citation
Cai, C., Ciccone, S., Li, H. and Xu, L.E. (2023), "Audit partner characteristics, career advancement and audit quality in the USA", Managerial Auditing Journal, Vol. 38 No. 4, pp. 389-418. https://doi.org/10.1108/MAJ-09-2021-3325
Publisher
:Emerald Publishing Limited
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