According to a new study led by the University at Buffalo of the State University of New York System and Ohio State University, audit teams with more women deliver higher-quality results than firms with fewer women partners.
In an analysis of audit-office data from 20 large U.S. public accounting firms from 2010 to 2018, the authors found that teams with higher proportions of women auditors, particularly in senior positions, consistently report fewer financial misstatements and charge lower audit fees, demonstrating significant benefits for both firms and their clients. Additionally, the study also revealed women’s positive influence in auditing was weaker in workplaces with fewer women partners and in firms with poor work-life balance.
“Research in teamwork dynamics shows that increasing the presence of women on teams can improve performance,” says study co-author Brandon Szerwo, assistant professor of accounting and law at the University at Buffalo. “And evidence from psychology, economics, and organizational behavior shows that many traits, behaviors, and characteristics commonly associated with women, such as being more risk-averse, cooperative, and detailed in processing information, often lead to better results. We find consistent results in the audit industry.”