Research on the Mechanism of Blockchain Technology Investment's Impact on Audit Fees

Abstract

This paper selects the financial data of China's A-share listed companies from 2016 to 2020, and analyzes the impact of blockchain technology investment on company audit expenses. The results show that there is a significant positive correlation between the blockchain technology investment and the company's audit expenses, that is, the more the company invests in blockchain technology, the higher the audit expenses will be. This is because the application of blockchain technology in listed companies will make auditors face higher risk of significant misstatement and audit risks, and then increase the related audit procedures, thus increasing the audit expenses. Conclusion The above results are still valid after robustness test and endogenous treatment. In this paper, the research on blockchain technology investment from the perspective of audit fees will help the theoretical circle to fully understand the potential effects of blockchain technology investment on social and economic development.