Diversity, Equity, and Inclusion in the Auditing Profession: Individual Auditor Experiences and Contributions

• In Event: ESG and DEI

Abstract

While audit firms make efforts to increase diversity within their ranks, and diversity in audit firm offices improves audit quality, the auditing profession in the U.S. remains disproportionately White and male, particularly at the top ranks. Our goal is to understand how individuals can contribute to workplace diversity, equity, and inclusion (DEI) in ways that are unique to the auditing environment. We conduct interviews with 32 auditors, many with diverse backgrounds, at all ranks and use Maslow’s hierarchy of psychological needs in the workplace to understand how their experiences among their colleagues relate to individual and firm DEI outcomes. We find that for diverse auditors, the need for emotional safety, which forms the foundation for higher-order psychological needs, goes unmet for many different reasons. Thus, DEI efforts that target higher-order needs are unlikely to have the desired impact. Encouragingly, our interviews suggest that auditors of all backgrounds can contribute to building a more diverse and inclusive workplace from staff to leadership through simple but intentional behaviors to increase emotional safety. We identify specific ideas and strategies for use by individual auditors that can complement larger scale office- and firm-wide efforts. These insights will provide audit firms with additional tools for promoting inclusivity and ultimately increasing diversity at the top ranks.

Authors

• Emily Elaine Griffith, University of Wisconsin-Madison

• Kathryn Holmstrom, Iowa State University

• Carissa L Malone, North Carolina State University