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Digital finance, internal control, and audit quality

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  • Liu, Yuanyuan
  • Liu, Qianqian
  • Wei, Yanqiu

Abstract

This paper selects data from listed companies spanning from 2012 to 2022 as the sample and employs a panel regression method to investigate the relationship among digital finance, internal control, and audit quality. The study finds that digital finance improves companies’ audit quality, internal controls have a positive impact on corporate audit quality, enterprise scale has a significant moderating influence on the relationship between internal controls and audit quality, and no significant difference is evident in the impact of internal controls on loss-making and profitable enterprises’ audit quality. This study enriches the theory on the relationship among digital finance, internal control, and audit quality, and provides valuable insights for the practical realm.

Suggested Citation

  • Liu, Yuanyuan & Liu, Qianqian & Wei, Yanqiu, 2025. "Digital finance, internal control, and audit quality," Finance Research Letters, Elsevier, vol. 76(C).
    • Handle: RePEc:eee:finlet:v:76:y:2025:i:c:s1544612325002971
    DOI: 10.1016/j.frl.2025.107033
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