Strategic Difference and Auditor's Decision

Strategy is very important to the production and operation of enterprises. This article uses listed companies in China as a sample to explore the impact of strategic differences on audit pricing and the types of audit opinions. The study found that the degree of strategic difference is significantly positively correlated with audit pricing and the types of audit opinions issued by auditors. The greater the corporate strategic differences, the higher the audit pricing, and the easier it is for auditors to issue non-standard audit opinions. Compared to non-state-owned enterprises, the strategic difference of state-owned enterprises has relatively weak influence on auditors' decision-making. The less competition in the industry where the enterprise is located, the weaker the influence of strategic difference on auditors' decision-making. The research results of this paper not only enrich the literature on company strategic choices, but also provide direct empirical evidence for auditors to make decisions.