Impact of Supply Chain Management Strategies on Auditors’ Risk Perception

Ruiqiang Zhang

doi:10.71204/qf4xq745

Authors

Ruiqiang Zhang Nanjing University of Science and Technology Author

DOI:

https://doi.org/10.71204/qf4xq745

Keywords:

Supply Chain Management Strategy, Auditors’ Risk Perception, Coal-Power Integration Strategy

Abstract

Against the backdrop of volatile global raw material prices and complex supply chains, enterprises optimize supply chain strategies (e.g., energy vertical integration, steel downstream collaboration) to boost resilience, and supply chain stability directly shapes auditors’ judgments on financial risks (e.g., inventory valuation), making their link a key research focus. Existing studies note supply chain optimization reduces operational risks but have gaps: they focus on generalized traits (transparency, complexity) rather than industry-specific paths (why coal-power firms prioritize integration over steel’s collaboration) and fail to clarify how strategies (cost stability) influence audit judgments. To address this, this study examines coal-power (power generation) and steel industries: coal-power integration stabilizes procurement costs—boosting generation to maximize profits when coal prices fall, mitigating surges via internal controls—reducing revenue/cost uncertainty and auditors’ risk concerns; it also compares steel’s downstream collaboration to reveal industry differences. The study contributes theoretically by clarifying industry-specific mechanisms, enriching cross-disciplinary frameworks; practically, it guides enterprises to design risk-aligned strategies and auditors to optimize industry-tailored assessments.

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