Abstract:Digital transformation is often difficult to achieve overnight, and some companies may adopt digital whitewashing strategies to achieve lowcost reputation construction and image management. Based on the data of Ashare listed companies from 2008 to 2021, the impact of corporate digital transformations whitewashing strategy on auditor selection is empirically examined. It is found that firms digital whitewashing strategy is significantly negatively related to highquality auditor selection, and this effect has a longterm effect. Mechanism tests indicate that the downward matching mechanism in selecting and hiring auditors and thus obtaining a positive bias in audit opinions is an important motivation for firms adopting whitewashing strategies in digital transformation to prefer hiring smaller auditors. Heterogeneity analysis finds that the impact of digital whitewashing strategies on the auditor selection is more pronounced in firms with lower levels of internal control, higher levels of industry competition, and locations that are included in “smart city” pilots.