The impact of gender difference on the interpretation of uncertainty expressions: The case of Chinese auditors

This study is an empirical examination of Chinese auditors’ interpretation of selected key uncertainty expressions, namely virtually certain, probable and unlikely, included in Chinese Accounting Standards. It examines the impact of gender difference on the interpretation of uncertainty expressions. The results show two major findings. First, there are significant differences between female and male auditors in the interpretation of virtually certain and probable with female auditors interpreting them more conservatively. Second, both female and male auditors’ interpretation of unlikely is similar across the various contexts in which the term is used. The results of this study suggest that gender difference can affect the numerical probability that auditors’ assign to uncertainty expressions used in Chinese Accounting Standards. This may lead to different application of professional judgments between male and female auditors. To avoid this possibility, Chinese Accounting Standards should provide more specific guidance as to how uncertainty expressions have to be interpreted.