External Audit Quality And Enterprise Innovation

In recent years,the state has vigorously promoted the innovation-driven strategy.Through various measures,it hopes to increase the enthusiasm of enterprises for innovation.However,innovation itself is a high-risk activity,and innovation may face huge financial and operational risks.Operators have different attitudes towards risk and have different views on innovation.Therefore,many scholars have begun to conduct research on how to correct management’s inappropriate risk tolerance,thereby improving the success rate of enterprise innovation.During the research process,some audit scholars proposed that external audit plays a supervisory role in the financial,operation,and strategy of enterprises.By improving the quality of external audit to achieve effective supervision,it will inevitably reduce the possibility of risks and promote enterprise innovation..Therefore,this paper will focus on external audit quality and corporate innovation,and further explore the mediating role of management risk tolerance on the two.By sorting out the existing research results,this paper expounds the relationship between audit quality and enterprise innovation,and further studies the impact of audit quality on management risk tolerance and enterprise innovation.By combining relevant theories,it defines the quality of external audit,management’s risk tolerance,and enterprise innovation.Secondly,it mainly introduces the theory of information asymmetry,the theory of management risk tolerance,and the theory of risk-oriented auditing,which provides the theoretical basis for the following research.Through theoretical analysis,this paper puts forward the hypothesis that high audit quality will promote enterprise innovation.According to the industry classification standard of the Securities Industry Association,this paper selects listed companies in the science and technology and information technology industries as research samples,and applies an empirical model to analyze the relationship between external audit quality and enterprises.The relationship between innovation is studied,and management risk tolerance is selected as the mediating variable,and finally the conclusion of this paper is drawn: audit quality will promote enterprise innovation,that is,the higher the audit quality,the more effective it can correct management’s inappropriate risk tolerance,In turn,promote enterprise innovation.Finally,according to the empirical analysis results,this paper puts forward relevant policy recommendations.The research content of this paper provides a new idea for further exploring the relationship between audit quality and enterprise innovation,that is,to study how external audit quality affects management’s risk tolerance and thus enterprise innovation.At the same time,it also provides new countermeasures for further understanding the importance of external audit quality and promoting the innovation of Chinese enterprises.