AI Article Synopsis
- Chinese companies have increased their investment in innovation and R&D, raising concerns about the associated audit risks, which has prompted academic interest.
- The study analyzes A-share listed companies in China from 2013 to 2021, finding that greater innovation investment leads to higher audit costs.
- Factors such as strong corporate governance, a well-staffed R&D team, funding subsidies, and healthy cash flow can mitigate this cost increase, while a supportive innovation environment can lessen the impact of innovation spending on audit fees.
Article Abstract
Driven by innovation strategy, Chinese enterprises' innovation investment, and research and development capability have been continuously improved, and the audit risk caused by this has attracted widespread attention from the academic community. This study takes China's A-share listed companies from 2013 to 2021 as samples to empirically test the relationship between innovation input and audit pricing of Chinese enterprises. Research shows that the higher the innovation investment, the higher the audit cost. High-quality corporate governance, sufficient research and development personnel, research and development subsidies, and operating cash flow can all play a negative moderating role. A good innovation environment will weaken the positive influence between innovation input and audit fees. This study theoretically confirms the risk-oriented audit pricing mechanism, which is of great significance for optimizing enterprise innovation risk management and improving audit service levels.
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Source |
|---|---|
| http://www.ncbi.nlm.nih.gov/pmc/articles/PMC10927154 | PMC |
| http://journals.plos.org/plosone/article?id=10.1371/journal.pone.0300137 | PLOS |
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