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

Jinguo Xin (xinjinguo@hdu.edu.cn), Kun Du (221150038@hdu.edu.cn) and Yuqi Xia
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Jinguo Xin: Zhejiang Institute of Information Technology Development, Hangzhou Dianzi University, Hangzhou 310018, China
Kun Du: School of Economics, Hangzhou Dianzi University, Hangzhou 310018, China
Yuqi Xia: School of Economics, Hangzhou Dianzi University, Hangzhou 310018, China

Sustainability, 2024, vol. 16, issue 22, 1-21

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.

Keywords: digital transformation; audit fees; information asymmetry; non-linear correlation (search for similar items in EconPapers)
JEL-codes: O13 Q Q0 Q2 Q3 Q5 Q56 (search for similar items in EconPapers)
Date: 2024
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