Study on the Impact of Digital Transformation in Manufacturing Enterprises on Audit Fees

Abstract

Digital transformation enhances operational efficiency, reshapes traditional business models and processes, and redefines how enterprises generate and transmit information. This transformation not only impacts corporate performance but also presents risks and challenges for certified public accountants. This study examines the impact of digital transformation levels on audit fees within the manufacturing sector, using a sample of 1,017 listed companies from 2015 to 2022. It analyzes the underlying mechanisms through risk-oriented auditing theory, information asymmetry theory, and cost-benefit theory. Additionally, it introduces variables of managerial competence and corporate property rights to examine their moderating effects on the relationship between digital transformation and audit fees. The study concludes that: (1) digital transformation exhibits a significant positive correlation with audit fees; (2) managerial competence exerts a negative moderating effect on this relationship; (3) property rights structure exerts a negative moderating effect on this relationship. Based on these findings and the characteristics of the manufacturing sector, the paper proposes practical recommendations for governments, enterprises, and accounting firms.