Research Article
Impact of Digital Transformation on Audit Fees
@INPROCEEDINGS{10.4108/eai.7-7-2023.2338032, author={Wenjing Zhou}, title={Impact of Digital Transformation on Audit Fees}, proceedings={Proceedings of the 2nd International Conference on Financial Innovation, FinTech and Information Technology, FFIT 2023, July 7--9, 2023, Chongqing, China}, publisher={EAI}, proceedings_a={FFIT}, year={2023}, month={10}, keywords={digital transformation; audit fees; internal controls; information systems com-plexity}, doi={10.4108/eai.7-7-2023.2338032} }- Wenjing Zhou
Year: 2023
Impact of Digital Transformation on Audit Fees
FFIT
EAI
DOI: 10.4108/eai.7-7-2023.2338032
Abstract
In the digital age, companies are either proactively or reactively adapting to digital transformation, which in turn will have far-reaching effects on the enterprises themselves and their information users. This study utilizes data from A-share listed companies in Shanghai and Shenzhen spanning the years 2011 to 2020, this paper empirically analyzes and examines the direction and mechanism of how corporate digital transformation affects audit fees, and concludes that digital trans-formation significantly increases audit fees, and that digital transformation has a notable and beneficial effect on audit fees when audited by "non-Big 4" account-ing firms compared to "Big 4" accounting firms. This study broadens the under-standing of how digital transformation affects audits and provide rich empirical evidence for CPAs to address misstatement risks in digital transformation.