Does age similarity between audit committee chair and engagement partner affect audit quality?

The psychology literature suggests that individuals who are similar in age are likely to be mentally connected and similarly minded, leading to better communication and efficient information sharing. Given that the relationship between audit committee (AC) and engagement partner (EP) involves extensive interactions and information sharing with the aim to protect the integrity of financial statements, this study seeks an answer as to whether age similarity between audit committee chair (ACC) and EP affects audit quality. Using the United Kingdom (UK) FTSE350 index between 2010 and 2018, we find that ACC-EP age similarity improves accruals quality and decreases the likelihood of restatements. Beyond its contribution to the literature, this study offers valuable contribution for practitioners to consider age gap between these two persons.