Women Are Raising the Bar in Audit Teams and Delivering Better Results at Lower Cost
Audit teams with more women are not just changing workplace demographics—they are delivering measurably better results for companies and clients alike. A new academic study shows that audit teams with higher female representation consistently produce higher-quality audits, report fewer financial misstatements, and do so while charging lower audit fees. The findings add strong, data-backed evidence to the growing conversation about gender diversity and performance in professional services.
The research, conducted by scholars from the University at Buffalo School of Management and The Ohio State University, was published in the Review of Accounting Studies in 2025. It takes a deep, numbers-driven look at how the gender composition of audit teams influences both audit quality and cost—two issues that matter greatly to investors, regulators, and corporate leaders.
What the Study Looked At
To understand how gender diversity affects audit outcomes, the researchers analyzed data from 20 large U.S. public accounting firms over a nine-year period from 2010 to 2018. The sample covered more than 4,700 audit clients, making it one of the most comprehensive studies of its kind.
Instead of focusing only on high-level leadership, the researchers examined the entire audit labor pipeline, including junior staff, audit seniors, and partners. This approach allowed them to identify where gender composition matters most and how different roles contribute to audit outcomes.
Two core metrics were used to evaluate performance:
- Audit quality, measured primarily through the presence or absence of financial misstatements
- Audit cost, measured using audit fees charged to clients
By comparing offices with different proportions of female auditors, the researchers were able to isolate meaningful patterns between team gender makeup and audit performance.
The Clear Link Between Women and Audit Quality
One of the most consistent findings of the study is that audit offices with a higher proportion of women deliver higher-quality audits. These offices reported fewer financial misstatements, suggesting stronger attention to detail, better risk assessment, and more effective oversight during the audit process.
This relationship held even after controlling for firm size, client complexity, industry factors, and other variables that could influence audit outcomes. In other words, the improvement in quality was not accidental or situational—it was systematically associated with greater female representation.
The effect was especially strong at the audit senior level. Audit seniors play a crucial role in the audit process, acting as supervisors, coordinators, and primary client contacts while also contributing directly to technical work. Because they sit at the intersection of execution and oversight, their influence on audit quality is substantial. Teams with more women in these senior staff roles showed the largest reductions in misstatement risk.
Better Audits at a Lower Cost
Higher quality often comes with higher costs, but this study found the opposite. Audit offices with more women also charged lower audit fees on average.
A key finding from the data shows that a one standard deviation increase in the proportion of female audit staff was associated with:
- Nearly a 9% reduction in financial misstatements
- Roughly a 2% decrease in audit fees
This suggests that gender-diverse teams are not only more effective but also more efficient. The lower costs do not appear to come from cutting corners. Instead, the researchers interpret this as evidence of improved coordination, fewer errors, and smoother audit processes that reduce the need for costly rework.
Why Gender Composition Makes a Difference
The study draws on decades of research from psychology, economics, and organizational behavior to explain these results. Prior studies have found that, on average, women tend to display traits such as greater risk awareness, higher cooperativeness, and more detailed information processing. In audit work—where skepticism, precision, and teamwork are critical—these traits can directly improve outcomes.
Importantly, the researchers do not claim that all women audit in the same way or that men lack these qualities. Instead, the findings suggest that diverse teams benefit from a wider range of perspectives and behavioral tendencies, which leads to better collective decision-making.
The Role of Workplace Environment
One of the most interesting aspects of the study is how strongly organizational culture influences the results. The positive impact of female representation was amplified in supportive environments and weakened in less inclusive ones.
Audit offices located in communities that are generally more supportive of women saw stronger improvements in audit quality. Likewise, firms with more female partners benefited more from gender-diverse teams. In contrast, workplaces with few women in leadership roles or poor work-life balance showed much weaker effects.
This finding highlights an important point: simply hiring more women is not enough. The environment must allow their contributions to fully translate into performance gains.
Why Audit Seniors Matter So Much
While female representation at all levels mattered, the study repeatedly points to the outsized importance of audit seniors. These professionals are deeply involved in day-to-day audit execution while also managing junior staff and interacting with clients.
Because audit seniors shape how work is performed and reviewed, their approach can significantly influence both quality and efficiency. The data shows that when women are well-represented in these roles, audits tend to be more accurate and less costly.
This has practical implications for firms that want to improve performance without dramatically increasing expenses. Investing in the retention and advancement of women at the senior staff level appears to deliver high returns.
What This Means for Accounting Firms
The takeaway for accounting firms is straightforward. Increasing female representation across the audit pipeline—especially in senior staff roles—can strengthen audit practices. However, those benefits are greatest when firms also invest in supportive cultures, leadership diversity, and work-life balance policies.
Rather than treating diversity as a compliance goal, this research frames it as a business advantage. Better audits reduce regulatory risk, protect investor confidence, and improve client relationships. Lower fees improve competitiveness in a crowded market.
A Broader Perspective on Gender and Professional Performance
This study also fits into a larger body of evidence showing that gender diversity can improve outcomes in areas such as corporate governance, risk management, and financial oversight. Prior research has linked female representation to stronger internal controls, lower earnings manipulation, and more conservative financial reporting.
What makes this study stand out is its granular focus on audit teams, its large dataset, and its ability to connect diversity directly to both quality and cost. It moves the discussion beyond theory and into measurable, real-world results.
Final Thoughts
The findings make one thing clear: women are not just contributing to audit teams—they are raising standards. When supported by inclusive environments and leadership opportunities, gender-diverse teams deliver audits that are more accurate, more efficient, and more valuable to everyone involved.
As firms continue to face pressure for transparency, accountability, and cost control, this research provides strong evidence that investing in women is not just the right thing to do—it is the smart thing to do.
Research paper: https://link.springer.com/article/10.1007/s11142-025-09924-1
