We use the controllable earnings to measure audit quality and investigate whether the distances between corporate headquarters and their subsidiaries could have a impact on the audit quality. Using the data of Shanghai A-share listed companies from 2010 to 2015 as a sample, the results show that there is a significant positive correlation between the geographical relationship and the audit quality, the farther the corporate headquarters is to their subsidiaries, the worse the audit quality is. The relationship between parent-subsidiary companies’ geographic distance and the audit quality is partially mediated by internal control quality of company. These conclusions can help companies to have a better understanding of the consequences caused by off-site expansion, and we also propose some practical suggestions for companies, auditors, stockholders and regulators in this field.