Abstract:As an important way to promote the integration of the digital economy and the real economy, the digital transformation of enterprises is closely related to the current construction of a new development pattern in which the great domestic cycle is the main body and the domestic and international cycles promote each other. Comprehensively considering the three stages and characteristics of enterprises digital transformation, taking the Shanghai and Shenzhen A share listed companies from 2009 to 2019 as sample data, combining text mining and manual reading, and using a multi time point DID model, this paper investigates the influence of enterprise digital transformation on audit quality and its function channel. It is found that the digital transformation of enterprises can improve audit quality by improving information transparency and reducing corporate risk taking. In further research, we find that the application of enterprise digital technology is conducive to the improvement of audit quality, while the role of business model innovation is not obvious. And the improvement of audit quality by digital transformation mainly occurs in profitable companies, companies with high institutional shareholdings, and non state owned enterprises. After the country implemented the real economy digital transformation industrial policy plan in 2015, the role of corporate digital transformation in improving audit quality is more obvious. In addition, this article also excludes alternative explanations of management incentives, equity checks and balances, and the degree of regional marketization. The conclusions of this paper have important theoretical and practical significance which not only expand the audit consequences of the digital transformation of enterprises, but also provide a wealth of empirical evidence for enterprises to implement digital transformation strategies.