Proceedings of the 3rd International Conference on Big Data Economy and Information Management, BDEIM 2022, December 2-3, 2022, Zhengzhou, China

Research Article

Quality of Internal Control of Listed Companies, Digital Level and CPA Audit Opinion

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  • @INPROCEEDINGS{10.4108/eai.2-12-2022.2328727,
        author={Xurui  Ma},
        title={Quality of Internal Control of Listed Companies, Digital Level and CPA Audit Opinion},
        proceedings={Proceedings of the 3rd International Conference on Big Data Economy and Information Management, BDEIM 2022, December 2-3, 2022, Zhengzhou, China},
        publisher={EAI},
        proceedings_a={BDEIM},
        year={2023},
        month={6},
        keywords={internal control; audit opinion; digital level},
        doi={10.4108/eai.2-12-2022.2328727}
    }
    
  • Xurui Ma
    Year: 2023
    Quality of Internal Control of Listed Companies, Digital Level and CPA Audit Opinion
    BDEIM
    EAI
    DOI: 10.4108/eai.2-12-2022.2328727
Xurui Ma1,*
  • 1: Beijing Jiaotong University
*Contact email: mxrdurant35@163.com

Abstract

The quality of an enterprise's internal control affects the audit workflow, as well as the choice of audit procedures and scope, and ultimately the audit opinion. This paper takes A-share listed companies in 2016-2020 as the research sample and constructs a regression model to test the relationship between internal control quality and audit opinion in the context of digital transformation of enterprises. The empirical results show that internal control quality is significantly and negatively related to non-standard audit opinion, and this paper introduces the moderating variable of corporate digitization level, and the findings show that corporate digitization level can significantly moderate the effect of low internal control quality on the increase of non-standard audit opinion. The improvement of enterprise digitization level helps auditors to issue appropriate audit opinions. The article provides new perspectives on the importance of enterprise digitization construction.