Research on the Impact of Digital Transformation on the Quality of Internal Control of Enterprises

Abstract

Whether digital transformation can improve the quality of internal control of enterprises, through which path to play a role, and whether there are differences between different enterprises, has become an important issue in accounting and financial management research. Based on the theory of information asymmetry, principal-agent theory, process reengineering theory and dynamic capability theory, this paper analyzes the theoretical logic of digital transformation affecting the quality of internal control. It is believed that digital transformation generally helps to improve the quality of internal control of enterprises, which is mainly reflected in three aspects: first, improving the standardization, transparency and traceability of internal control activities through information system construction; second, improve enterprise risk identification and early warning capabilities through data integration and process integration; third, improve the implementation effect of internal control by improving the decision-making efficiency of management and the coordination ability of departments.  On this basis, the following suggestions are put forward: first, enterprises should promote the digital transformation and the construction of internal control system as a whole, and strengthen the top-level design and system coordination; the second is to improve the data governance and authority management mechanism to prevent the risk of control failure in the digital environment; the third is to strengthen the cultivation of compound accounting talents and promote the deep integration of finance, audit, business and information technology; fourth, the regulatory authorities should further improve the internal control evaluation and information disclosure rules under the digital background, and guide enterprises to achieve a substantial leap from 'information system' to 'digital strong governance'. The research in this paper is helpful to deepen the understanding of the economic consequences of digital transformation, and also provides a certain reference for enterprises to improve the effectiveness of internal control and achieve high-quality development.