Internally Promoted Audit Partner and Audit Quality
Internally promoted partners in this research refer to partners who started their careers,got promotion,and continue to work at the same accounting firm.Those partners reflect the firm's long-term investment in human capital,but have received limited studies.This study empirically tests differences in audit quality between internally and non-internally promoted partners,using the sample of A-share listed companies on the Shanghai and Shenzhen Stock Exchanges from 2014 to 2021.It is found that compared to non-internally promoted partners,internally promoted partners are able to provide higher quality audit services.This difference is more pronounced in sample accounting firms with male partners and with more diverse personnel sources.Internally promoted partners also charge higher audit fees and are less likely to engage in low-price competition.Overall,internally promoted partners provide high-quality,high-priced audit services,yet their audit efficiency could be improved,as evidenced by audit delays.This study lends implications for human resources management and internal governance in accounting firms.