The purpose of this study is to examine the role of ethnic similarity in the audit partner–client manager relationship and its impact on auditor selection and retention decisions.,The authors use name matching analysis to infer ethnicity of audit partners and client managers in the US nonprofit reporting environment. The authors examine the degree of ethnic similarity (co-ethnicity) between the two parties and model auditor selection and retention decisions as a function of co-ethnicity. The authors also model reporting attributes as a function of co-ethnicity.,The authors find that the ethnic similarity between the client manager and their external audit partner is a significant determinant of auditor-client alignment. Specifically, the authors find that clients are more likely to select and retain an audit partner who is ethnically similar to the client manager. The authors find that co-ethnicity is associated with a lowered propensity to issue a going concern opinion to a financially distressed client and an increased occurrence of underreporting of fundraising and administrative expenses.,Taken together, the evidence suggests that ethnic diversity (the opposite of co-ethnicity) in the auditor-client relationship is associated with higher audit quality. These findings are relevant to client managers, audit committees and public accounting firms as they make auditor selection and reporting decisions.,Prior studies have found that co-ethnicity influences the formation and future success of various business partnerships. The auditor-client relationship is a unique setting within the business environment where the two parties must balance their desire to maintain a close relationship with their need to maintain independence. The study is the first to examine the role of ethnicity in the auditor-client relationship.

中文翻译：

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客户和审计伙伴的种族和审计师与客户的一致性

这项研究的目的是检验种族相似性在审计合伙人与客户经理之间的关系及其对审计师选择和保留决策的影响。作者使用姓名匹配分析来推断美国审计合伙人和客户经理的种族。非营利报告环境。作者检查了两方之间的种族相似度（共同种族），并根据共同种族的关系对审计员的选择和保留决策进行了模型化。作者还将报告属性建模为同族关系的函数。作者发现，客户经理与其外部审计合作伙伴之间的族裔相似性是审计师与客户保持一致的重要决定因素。特别，作者发现，客户更有可能选择和保留与客户经理种族相似的审计合伙人。作者发现，同族裔与向财务困境的客户发出持续经营意见的倾向降低以及筹款和行政费用漏报的发生率增加有关。综上所述，证据表明种族多样性（与种族歧视相反）审计师与客户之间的合作关系）与更高的审计质量相关。这些发现与客户经理，审计委员会和公共会计师事务所在选择审计师和报告决策时有关。先前的研究发现，同族关系会影响各种商业伙伴关系的形成和未来的成功。审计师与客户之间的关系是商业环境中的一种独特设置，在该环境中，双方必须在保持亲密关系的需求与保持独立性的需求之间取得平衡。该研究是第一个研究种族在审计师与客户关系中的作用的研究。