Female audit committee members and their influence on audit fees

Abstract

We test the relationship between female representation on the audit committee and audit fees for 624 Australian companies in the year 2011. A positive relationship is found, leading to the conclusion that female presence on audit committees influences the quality of the external audit. Further, we find that gender is the significant audit committee characteristic in predicting audit quality and that women on the audit committee strengthen the positive relationship between firm size and audit fees, and between risk and audit fees. Conversely, we find that female representation dampens the positive relationship between complexity and audit fees.

The influence of the CEO's value perception towards auditing on audit demand in private firms

“…Carcello et al, 2002;Abbott et al, 2003;Knechel and Willekens, 2006;Bliss, 2011;Aldamen et al, 2016). This is also in line with most other studies that examine the amount of audit effort/assurance demanded (e.g.…”

Gender‐diverse boards and audit fees: What difference does gender quota legislation make?

“…(), who report that gender‐diverse boards appoint industry‐specialist auditors and demand higher audit effort, resulting in higher audit fees. Their doing so might be due to women's greater concern for high‐quality audit information, risk oversight, and control mechanisms (Aldamen, Hollindale, & Ziegelmayer, ). In line with these studies, female independent directors may demand higher audit effort to ensure the quality of financial information and to protect their personal and organizational reputation.…”

Does gender diversity in the audit committee influence key audit matters' readability in the audit report? UK evidence

“…How ever, if the external auditor is dependent on management, he may publish a 'clean' (unmodified) opinion, thus contradicting the interests of the stakeholders (Aldamen et al, 2016). Based on stakeholder agency theory, stakeholders demand a strict audit of financial reporting and a modified opinion in the presence of material failures by the external auditor.…”

“…Aldamen et al, 2016;Ittonen et al, 2010;Xiang & Chengdu, 2015). Aldamen et al, 2016;Ittonen et al, 2010;Xiang & Chengdu, 2015).…”

“…Since no current study reflects possible corporate governance variables as determinants of KAM disclosures, we see a major gap in empirical gender diversity research. Aldamen, Hollindale, & Ziegelmayer, 2016;Ittonen, Miettinen, & Vähämaa, 2010;Xiang & Chengdu, 2015). Ali, Frynas, & Mahmood, 2017;Cucari, DeFalco, & Orlando, 2017;Frias-Aceituno, Rodriguez-Ariza, & Garcia-Sanchez, 2013).…”