Audit Committee Gender Diversity, Women Audit Partner and ‎Fraud Risk in China

  • Authors

    • He Xiaohao Accounting, Universiti Kebangsaan Malaysia, Bangi, Selangor, Malaysia
    • Mohd Mohid Rahmat Accounting, Universiti Kebangsaan Malaysia, Bangi, Selangor, Malaysia https://orcid.org/0000-0002-6791-649X
    • Nur Hidayah Waad Accounting, Universiti Kebangsaan Malaysia, Bangi, Selangor, Malaysia https://orcid.org/0009-0003-7446-7586
    • Hanis Amera Mohd Amin Accounting, Universiti Kebangsaan Malaysia, Bangi, Selangor, Malaysia
    https://doi.org/10.14419/z4s7yn07

    Received date: October 18, 2025

    Accepted date: January 15, 2026

    Published date: March 2, 2026

  • Audit Committee Gender Diversity; Women Audit Partners; Fraud Risk; Dual-Signature Audit ‎System; Corporate Governance

  • Abstract

    This study examines the impact of audit committee gender diversity (ACGD) and women audit ‎partners (WAP) on fraud risk (FR) in Chinese A-share listed companies. It also explores the ‎moderating effect of WAP on the ACGD-FR relationship within China’s dual-signature audit ‎system. Using a quantitative approach, the study analyzes 21,760 firm-year observations from ‎‎2019 to 2023 and employs logistic regression to assess the effects of ACGD, WAP, and their ‎interaction on FR. The results indicate that both ACGD and WAP are significantly and ‎negatively associated with FR, with their interaction further reducing fraud risk. These findings ‎provide important academic implications by extending the audit governance literature through a ‎dual focus on ACGD and WAP, while also offering practical insights for policymakers and ‎corporate managers seeking to enhance governance effectiveness through gender diversity ‎initiatives. The novelty of this study lies in its systematic analysis of the synergistic role of ‎ACGD and WAP in mitigating fraud risk, an area largely overlooked in prior research‎.

  • References

    1. Abbott, L. J., Parker, S., & Presley, T. J. (2012). Female board presence and the likelihood of financial restatement. Accounting Horizons, 26(4), 607-629. https://doi.org/10.2308/acch-50249.
    2. Abdelfattah, T., Elmahgoub, M., & Elamer, A. A. (2021). Female audit partners and extended audit reporting: UK evidence. Journal of Business Ethics, 174, 177-197. https://doi.org/10.1007/s10551-020-04607-0.
    3. Abdullah, S. N., & Ku Ismail, K. N. I. (2013). Gender, ethnic and age diversity of the boards of large malaysian firms and performance. Jurnal Pengurusan, 38, 27-40. https://doi.org/10.17576/pengurusan-2013-38-03.
    4. Alkebsee, R. H., Tian, G.-L., Usman, M., Siddique, M. A., & Alhebry, A. A. (2021). Gender diversity in audit committees and audit fees: evidence from China. Managerial Auditing Journal, 36(1), 72-104. https://doi.org/10.1108/MAJ-06-2019-2326.
    5. Chaney, P. K., Faccio, M., & Parsley, D. (2011). The quality of accounting information in politically connected firms. Journal of Accounting and Economics, 51(1-2), 58-76. https://doi.org/10.1016/j.jacceco.2010.07.003.
    6. Fan, J. P. H., Wong, T. J., & Zhang, T. (2007) Politically connected CEOs, corporate governance, and Post-IPO performance of China's newly par-tially privatized firms. Journal of Financial Economics, 84(2), 330-357. https://doi.org/10.1016/j.jfineco.2006.03.008.
    7. Firth, M., Rui, O. M., & Wu, W. (2011). The effects of political connections and state ownership on corporate litigation in China. The Journal of Law and Economics, 54(3), 573-607. https://doi.org/10.1086/659261.
    8. Ghafran, C., & O’Sullivan, N. (2017). The impact of audit committee expertise on audit quality: evidence from UK audit fees. The British Account-ing Review, 49(6), 578-593. https://doi.org/10.1016/j.bar.2017.09.008.
    9. Gul, F. A., Kim, J. B., & Qiu, A. A. (2010) Ownership concentration, foreign shareholding, audit quality, and stock price synchronicity: evidence from China. Journal of Financial Economics, 95, 425-442. https://doi.org/10.1016/j.jfineco.2009.11.005.
    10. Hao, J., Pham, V., & Guo, M. (2022). The gender effects of audit partners on audit outcomes: evidence of rule 3211 adoption. Journal of Business Ethics, 177(2), 275-304. https://doi.org/10.1007/s10551-020-04732-w.
    11. Hardies, K., Breesch, D., & Branson, J. (2016). Do (fe)male auditors impair audit quality? evidence from going-concern opinions. European Ac-counting Review, 25(1), 7-34. https://doi.org/10.1080/09638180.2014.921445.
    12. Ittonen, K., Vähämaa, E., & Vähämaa, S. (2013). Female auditors and accruals quality. Accounting Horizons, 27(2), 205-228. https://doi.org/10.2308/acch-50400.
    13. Kanter, R. M. (1977). Some effects of proportions on group life: skewed sex ratios and responses to token women. American Journal of Sociology, 82(5), 965-990. https://doi.org/10.1086/226425.
    14. Leys, C., Ley, C., Klein, O., Bernard, P. & Licata, L. (2013). Detecting outliers: Do not use standard deviation around the mean, use absolute devi-ation around the median. Journal of Experimental Social Psychology, 49(4), 764-766. https://doi.org/10.1016/j.jesp.2013.03.013.
    15. McLaughlin, C., Armstrong, S., Moustafa, M. W., & Elamer, A. A. (2021). Audit committee diversity and corporate scandals: evidence from the UK. International Journal of Accounting & Information Management, 29(5), 734-763. https://doi.org/10.1108/IJAIM-01-2021-0024.
    16. Miglani, S., & Ahmed, K. (2019). Gender diversity on audit committees and its impact on audit fees: evidence from India. Accounting Research Journal, 32(4), 568-586. https://doi.org/10.1108/ARJ-01-2018-0001.
    17. Mnif, Y., & Cherif, I. (2022). Audit partner workload, gender and audit quality. Journal of Applied Accounting Research, 23(5), 1047-1070. https://doi.org/10.1108/JAAR-08-2021-0219.
    18. Mnif, Y., & Cherif, I. (2023). The simultaneously representation of women at the audit demand and supply sides and audit quality. Asian Review of Accounting, 31(5), 754-804. https://doi.org/10.1108/ARA-09-2022-0214.
    19. Nekhili, M., Gull, A. A., Chtioui, T., & Radhouane, I. (2020). Gender-diverse boards and audit fees: what difference does gender quota legislation make? Journal of Business Finance & Accounting, 47(1/2), 52-99. https://doi.org/10.1111/jbfa.12409.
    20. Oradi, J., & Izadi, J. (2020). Audit committee gender diversity and financial reporting: evidence from restatements. Managerial Auditing Journal, 35(1), 67-92. https://doi.org/10.1108/MAJ-10-2018-2048.
    21. Perry, Y. Z., Srinidhi, B., & Yang, Z. (2023). Gender diversity and audit quality: evidence from the pairing of audit partners. Auditing: A Journal of Practice & Theory, 42(4), 81-104. https://doi.org/10.2308/AJPT-2021-031.
    22. Pfeffer, J., & Salancik, G. R. (1978). The external control of organizations: a resource dependence perspective. New York: Harper & Row.
    23. Terjesen, S., Aguilera, R. V., & Lorenz, R. (2015). Legislating a woman's seat on the board: institutional factors driving gender quotas for boards of directors. Journal of Business Ethics, 128(2), 233-251. https://doi.org/10.1007/s10551-014-2083-1.
    24. Wahid, A. S. (2019) The effects and the mechanisms of board gender diversity: evidence from financial manipulation. Journal of Business Ethics, 159(3), 705-725. https://doi.org/10.1007/s10551-018-3785-6.

  • Downloads

  • How to Cite

    Xiaohao, H. ., Rahmat , M. M. ., Waad, N. H. ., & Amin, H. A. M. . (2026). Audit Committee Gender Diversity, Women Audit Partner and ‎Fraud Risk in China. International Journal of Accounting and Economics Studies, 13(2), 384-391. https://doi.org/10.14419/z4s7yn07