Research On Enterprise Digital Transformation,Internal Control And Audit Quality

With the development of new digital technology,profound changes are taking place in all aspects of society,and the digital economy has become a new economic growth point.The government has upgraded the digital economy to a strategic level and launched a series of strategic arrangements,which provided policy support for the digital transformation of all walks of life.Enterprises will definitely carry out digital transformation.Digital transformation not only promotes the internal quality and efficiency of enterprises,but also changes the information environment and enterprise risks,which has an impact on the external audit work.In order to deeply understand the external economic consequences of enterprise digital transformation,this study explores the impact of enterprise digital transformation on audit quality,and explores the impact path between them from the perspective of internal control.Based on the sample of A-share listed companies from 2009 to 2020,this study follows the idea of "benchmark regression—impact path test—heterogeneity test—economic consequence test",analyzes the digital transformation,internal control and audit quality within a research framework.The research results show that:(1)A higher degree of enterprise digital transformation leads to higher audit quality;(2)Internal control is one of the mechanism paths of enterprise digital transformation affecting audit quality,and it plays an intermediary role;(3)From the elements of internal control,control environment,control activities,information and communication play an intermediary role between enterprise digital transformation and audit quality,but the intermediary role of risk assessment and internal supervision is not established;(4)The results of the heterogeneity test from the perspectives of enterprises,industries and regions show that in non-state-owned enterprises,competitive industries and regions with low marketization level,the digital transformation plays a stronger role in improving audit quality;(5)From the results of the economic consequences test,enterprise digital transformation can improve the audit quality,effectively restrain the risk of stock price collapse and stabilize the financial market environment.This study expands the research in the field of digital transformation and audit quality,examines the external economic consequences of enterprise digital transformation,provides experience and inspiration for the continuous promotion of enterprise digital transformation,and provides direction for optimizing internal control and improving audit quality.