Abstract:This paper takes A-share listed companies from 2007 to 2021 as samples to empirically study the impact of auditor industry specialization on digital transformation of enterprises. The study finds that auditor industry specialization can promote enterprise digital transformation, the underlying mechanism is that auditor industry specialization alleviates information asymmetry between external stakeholders and the enterprise and reduces the uncertainty in management decision-making. In promoting digital transformation of enterprises, institutional investor shareholding, analyst attention and auditor reputation will weaken the influence of auditor industry specialization, while auditor tenure and information technology background will strengthen the influence of industry specialization. The auditor industry specialization can enhance the peer effect of digital transformation in enterprises.