Public data access and audit quality: evidence from China

This paper investigates the impact of public data access on audit quality. Analysing data from Chinese listed firms between 2007 and 2021 and using the staggered difference-in-differences method, we find that public data access significantly enhances audit quality for local firms. The effects are particularly pronounced when auditors possess greater information technology capability or face higher information demand. Mechanism tests show that auditors benefit most from public data on environmental protection, business operations, and entertainment, which provide verifiable external benchmarks to detect misreporting. Additionally, audit fees are reduced following the opening of public data.