Rethinking the “Ideal” Auditor: The Underestimated Role of Equity, Diversity, and Inclusion in Recruitment and Retention at Accounting Firms

ABSTRACT

Both in Canada and internationally, accounting firms are struggling to recruit and retain staff. One underexplored factor that may help to explain and resolve these challenges concerns the integration of equity, diversity, and inclusion (EDI) considerations into firms' organizational processes. The accounting profession, in general, and accounting firms, in particular, have made significant progress in EDI aims, supported by the implementation of numerous initiatives and substantial investments. However, organizational processes designed to recruit, onboard, and promote those professionals deemed to be the highest performers—that is, the “ideal” auditors—still too often lead to the loss of qualified talent. Drawing on the academic literature, we show that certain practices, though not necessarily designed with discriminatory intent, remain non‐inclusive and thus hinder the access, advancement, and retention of several underrepresented groups within the profession. We further analyze the mechanisms and biases that contribute to these dynamics and propose various avenues for reducing bias in organizational processes and promoting greater EDI within accounting firms.