Mid-Tier Audit Firm Partners and their Educational Roots

• In Event: Auditing

Abstract

The authors harness the transparency in the Public Company Accounting Oversight Board (PCAOB) requirement to disclose names of engagement partners on each public company financial audit on Form AP to study the gender diversity and educational root of mid-tier audit firm partners. We create a sample of 435 audit partners at four mid-tier audit firms to explore gender diversity. For a subsample of these individuals, we use the Internet to associate the individuals with the institutions awarding their bachelor’s degrees. We find that the mid-tier audit firms have similar gender ratios as reported numbers for the Big Four firms. Our results reveal that these partners earn degrees at institutions of all sizes and types. However, the larger, doctoral-granting institutions are significantly associated with the existence of female audit partners at these firms. Other school characteristics are not statistically significant with gender diversity at the partner level for these firms. Our results imply that educational institutions have a significant opportunity to promote the highest level of auditing to our female students and develop programs to support female students prior to beginning their professional careers.

Authors

• Lydia N Didia, Penn State University - Harrisburg

• Renee Flasher, Penn State Harrisburg