Work

The Impact of Enterprise Digital Transformation on Audit Fees—An Intermediary Role Based on Information Asymmetry

Year: 2024

Type: article

Abstract: This study investigates the impact of enterprise digital transformation through information and communication technology (ICT) on auditing fees. Based on data from publicly listed companies in China and employing information asymmetry theory, the research finds that the adoption of three factors associated with digital transformation—artificial intelligence (AI), cloud computing (CC), and big data technologies (BD)—exhibits a significant inverted U-shaped effect on auditing fees. Further analysis reveals that this effect is moderated by the quality of internal controls, the level of corporate governance, and discretionary accruals. These findings underscore the necessity for a nuanced understanding of the relationship between technology and auditing, as well as the importance for audit organizations to integrate new technologies into their practices to effectively respond to the rapid adoption of digital technologies by enterprises.

Source: Sustainability

DOI: 10.3390/su16229970

Authors: Jinguo Xin, Kun Du, Yuqi Xia

Institution: Hangzhou Dianzi University

Language: English

Topic: Auditing, Earnings Management, Governance

Subfield: Accounting

Field: Business, Management and Accounting

Domain: Social Sciences

Open Access status: gold

Estimated APC paid: $2,728

Funder: National Social Science Fund of China