The Public Health Events on the Audit Behavior and the Audit Quality: An Empirical Study

Abstract

Public health emergencies have a significant impact on the safety of life and property of the people, and also exert a profound influence on various aspects of Chinese society and economy. In this study, we aim to select public health emergencies that occurred between 2018 and 2021 as empirical data. Using event analysis techniques, we systematically investigate how such emergencies affect the audit behavior of listed companies in China and the quality of their audits. Our findings indicate that public health emergencies have a significant negative impact on audit quality and also affect audit behavior, as evidenced by the increase in audit fees following the outbreak of such emergencies. By conducting empirical analysis on the impact of public health emergencies on audit quality, we aim to make audit practices more scientific, comprehensive, and efficient. This will enable the better utilization of the supervisory function of audit and enhance the quality of audit. In the context of public health emergencies, this study provides theoretical foundations and practical recommendations for auditing agencies to advance their audit practices.