The Impact of Enterprise Digital Transformation on Audit Risk

Bingnan Wang

doi:10.62177/apemr.v3i1.1045

Authors

Bingnan Wang Guilin University of Electronic Technology

DOI:

https://doi.org/10.62177/apemr.v3i1.1045

Keywords:

Digital Transformation, Audit Risk, Internal Control

Abstract

This study examines the impact of corporate digital transformation on audit risk using A-share listed companies in Shanghai and Shenzhen from 2015 to 2022 as a sample. The findings reveal a significant negative correlation between the degree of digital transformation and audit risk, indicating that digital transformation helps mitigate audit risks. Mechanism analysis demonstrates that digital transformation effectively reduces uncertainties and risk exposure in auditing by enhancing internal control quality, increasing information transparency, and optimizing data management. Further mediation analysis shows that internal control quality partially mediates the relationship between digital transformation and audit risk. The research provides empirical evidence for enterprises to strengthen internal control systems and audit risk governance during digital transformation, while also offering guidance for audit institutions to optimize audit procedures and improve audit quality in the digital era.

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