Enterprise Digitization And Internal Control Defect Disclosure

In today’s era,the digital economy is deeply integrated with traditional industries.And the digital and intelligentdevelopment of enterprises is constantly promoted.Deepening the positive role of digital economy on the development and growth of enterprises and strengthening the role of digital internal supervision on enterprises have become an important way of high-quality development of enterprises.Internal control as the key core of the enterprise,improve enterprise management,strengthen the ability to resist risks.The disclosure of internal control defect information is conducive to investors to understand the true information of the enterprise and the supervision of the regulatory department.Can enterprise digitization promote the discovery and repair of internal control defects? What is the impact of enterprise digitization on the disclosure of internal control defects? Understanding this problem helps enterprises improve the quality of internal control information disclosure,promote the quality of accounting information and improve the efficiency of the capital market.This is of great significance.In order to study this problem,this paper takes the data of A-share enterprises from2012 to 2021 as samples,based on the theory of information asymmetry,signal transmission theory,and takes the development level of enterprise digitization as the research starting point,respectively studying the influence of enterprise digitization on the quantity,timeliness and initiative of internal control defect disclosure.Finally,it is verified by empirical analysis.The main conclusions of this paper are as follows:compared with enterprises without digital construction,enterprises with digital construction have less disclosure of internal control defects,but the relationship between timeliness and initiative of disclosure is significantly enhanced.On this basis,this paper further examines the moderating effect of auditor size and finds that auditor size strengthens the relationship between enterprise digitization and the timeliness and initiative of internal control defect disclosure,but auditor size does not significantly strengthen the quantitative relationship between enterprise digitization and internal control defect disclosure.At the same time,substitution of explanatory variables,change of window period and hysteresis test are used as robustness test,and the conclusion is robust.To study the influence mechanism and action mechanism of enterprise digitization on internal control defect disclosure,on the one hand,it can enhance the reliability of the conclusion of the influence of digitization on internal control;on the other hand,the relationship between the two is examined from the unique perspective of digitization level,and the research idea of influencing factors of listed companies’ internal control defect disclosure is broadened.According to the research conclusions,this paper puts forward the following policy suggestions: In order to improve the quality of disclosure of internal control,listed companies should strengthen their own digital construction;In internal control audit,certified public accountants should pay attention to the digital construction of enterprises,and reasonably determine the key points of internal control audit,so as to ensure audit quality and improve audit efficiency;The government and other relevant departments shall carry out effective supervision over the digitization construction of enterprises.