Is Auditors’ Migration Status Associated with their Performance?

Wen He, Chao Kevin Li and Yi Si

European Accounting Review, 2025, vol. 34, issue 4, 1365-1390

Abstract: We investigate whether audit quality is associated with auditors’ migration status at the time of their entry to the job market after obtaining their academic degrees. Moving from less (more) to more (less) economically developed regions is termed as upward (downward) migration. Using a large sample of auditors in China, we find that upwards (downwards) migrating auditors tend to deliver higher quality (lower quality) audits than nonmigrating auditors. The association between migration status and audit quality varies predictably with auditor and client characteristics. Upwards migrating auditors are more successful in their career development than local auditors, and investors and clients appear to understand the varying audit quality provided by migrating auditors. Overall, our results are consistent with the hypothesis that employers underestimate (overestimate) the ability of upwards (downwards) migrating graduates in the recruitment process.

Date: 2025
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DOI: 10.1080/09638180.2024.2384379

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