The Impact of Enterprise Information Security on Audit Decision
Under the background of national security strategy,it is especially important to ensure enterprise information security and maintain the safety,stability and continuity of enterprise operation.Can external auditors identify enterprise information security and provide assistance in strengthening enterprise information security?This paper examines the impact of enterprise information security on audit fees claimed by auditors based on data of Chinese A-share listed companies from 2013 to 2021.The results show that enterprise information security can significantly reduce audit fees.The mechanism test shows that enterprise information security mainly reduces audit fees by reducing operating risk.Furthermore,the negative relationship between enterprise information security and audit fees is more pronounced for firms with more critical information infrastructure security demands or with more IT-background independent directors.This study enriches the literature on enterprise information security and audit fees.The conclusion helps stakeholders understand the impact of enterprise information security on auditor's decision and provides empirical evidence for listed companies to strengthen information security.