The Impact of Corporate Digital Transformation on Audit Quality - The Mediating Role of Internal Control -

Under the background of the rapid development of the digital economy, digital transformation has become a strategic choice for China to respond to significant changes and complex situations in the domestic and foreign environment and to preempt the upper hand in future competition. This study discussed the effect of corporate digital transformation on audit quality and verified the mediating role of internal control in these relationships. For the research analysis, the methods of technical statistics, correlation analysis, benchmark regression model, and mediating effect analysis were used on the Shanghai and Shenzhen stock exchanges from 2013 to 2023. According to the analysis results, it was found that corporate digital transformation greatly improves audit quality, and internal control plays a partial mediating role in this process. In particular, digital innovation was considered to optimize the internal control process and strengthen the corporate risk management capabilities, resulting in improved audit quality. The conclusion of this study provided a new perspective in understanding the economic effects of digital transformation and provided theoretical support for audit practice and corporate digital transformation initiatives.