A new study highlighted by Accounting Today suggests that audit teams with more women, particularly in leadership positions, are more apt to produce higher-quality audits at less cost.

The research, set to appear in the Review of Accounting Studies, analyzed data from 20 US accounting firms and more than 4,700 clients between 2010 and 2018. Its findings point to a clear pattern that teams with a higher share of female auditors reported fewer financial misstatements and charged lower audit fees. 

Brandon Szerwo, a co-author of the study and an assistant professor of accounting and law at the University at Buffalo, said the results are consistent with the broader literature from psychology, economics, and organizational behavior.

“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,” he said. “We find consistent result in the audit industry.”

Given the responsibility for supervision, client interaction, and managing engagement workflows, the positive effects were most pronounced when women held senior positions on audit teams.

The study also underlined the context that supportive work environments, offices with more female partners, strengthen these outcomes, while cultures with poor work-life balance tend to weaken them. 

Co-author Joshua Khavis emphasized the broader implication that developing gender-diverse audit teams, especially at senior levels, can meaningfully enhance audit quality, contributing to recent debates about the ways that representation, leadership structures, and firm culture influence the profession.