Audit partner characteristics, career advancement and audit quality in the USA

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.

Does audit quality affect auditors’ career development? Evidence from Chinese audit firms’ demise

“…Our study enriches the literature on individual auditors’ career advancement (Cai et al. , 2023; Carter and Spence, 2014; Downar et al.…”

“…Our study enriches the literature on individual auditors' career advancement (Cai et al, 2023;Carter and Spence, 2014;Downar et al, 2021;Hilary and Lennox, 2005). Unlike the growing literature on individual auditors' attributes and incentives (e.g.…”

“…, 2013; Gul et al. , 2019; Lennox and Wu, 2018), studies on auditors’ career development explores the careers of partners in Big 4 firms (Cai et al. , 2023; Carter and Spence, 2014; Downar et al.…”

“…Although audit labour market studies investigate audit firms' employment strategies, evidence regarding individual auditors' careers in the presence of this market remains scant. As part of the growing body of research on individual auditors (Aobdia et al, 2015;Gul et al, 2013;Gul et al, 2019;Lennox and Wu, 2018), studies on auditors' career development explores the careers of partners in Big 4 firms (Cai et al, 2023;Carter and Spence, 2014;Downar et al, 2021;Meuwissen, 1998). However, research on career development suffers from endogeneity problems (Chang et al, 2023).…”

أثر خطر التقاضي وآليات إدارة مخاطر المسؤولية المهنية لمراقب الحسابات على جودة المراجعة في ظل الدور المعدل لحجم المكتب ونوع مراقب الحسابات: دراسة تجريبية

“…) Dhubaibi, A. 2021;Cai et al, Shahar and -Ben Logue, 2012;Hwang and Kim 2018;Aguir and Aguir, 2020) (Chen et al, 2016;Weng et al, 2017;Choi and Jung, 2021) . Negligence .…”