• ISSN: 2301-3567 (Print), 2972-3981 (Online)
    • Abbreviated Title: J. Econ. Bus. Manag.
    • Frequency: Quarterly
    • DOI: 10.18178/JOEBM
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HOME > Archive > 2025 > Volume 13 Number 2 (2025) >
JOEBM 2025 Vol.13(2): 163-168
DOI: 10.18178/joebm.2025.13.2.861

Local Government Audit Information Disclosure and Audit Pricing: Evidence from China

Wang Qiujin
Nanjing Audit University, Nanjing, China
Email: wqjvip2015@outlook.com (W.Q.J.)

Manuscript received November 29, 2024; accepted February 12, 2025; published April 23, 2025.

Abstract—Audit disclosure, as a critical component of government information transparency, plays a significant role in promoting democratic governance, constructing a transparent government, and supporting the modernization of national governance systems. Local government audit information disclosure has become an essential tool for enhancing government credibility and strengthening fiscal oversight. This paper, grounded in the information disclosure practices of local government audit accounts on Weibo and WeChat public platforms, utilizes financial data from Chinese publicly listed companies from 2000 to 2023 as sample data. By constructing a Difference-In-Differences (DID) model, we empirically examine the impact of government audit information disclosure on audit pricing. The results indicate that local government audit information disclosure contributes to an increase in corporate audit pricing. Specifically, such disclosure improves audit transparency, potentially elevating auditors’ reputational risk, which in turn encourages auditors to enhance audit quality and increase audit efforts, thereby raising audit fees for firms. From the perspective of government-business interactions, this study adds to the literature on factors influencing audit fees and provides a basis for government policymakers regarding governance modernization and supervisory practices.

Keywords—audit information disclosure, audit pricing, audit effort, local government

Cite: Wang Qiujin, "Local Government Audit Information Disclosure and Audit Pricing: Evidence from China," Journal of Economics, Business and Management, vol. 13, no. 2, pp. 163-168, 2025.

Copyright © 2025 by the authors. This is an open access article distributed under the Creative Commons Attribution License which permits unrestricted use, distribution, and reproduction in any medium, provided the original work is properly cited (CC BY 4.0).


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