This study examines the relationship between client demand attributes and audit quality
in the Chinese capital market. Drawing on 2,878 firm-year observations of A-share listed companies
from 2021–2023, audit quality is proxied by discretionary accruals estimated using the Modified
Jones Model. Client demand is operationalized through incentive factors (dividend policy and
firm value) and competency factors (board independence and directors’ remuneration). The
baseline results reveal that client-demand attributes exert only a limited influence on audit
outcomes. The heterogeneity analysis further indicates that these attributes remain largely
insignificant among state-owned enterprises (SOEs), whereas board independence plays a modest
role in constraining earnings management in non-SOEs. Robustness tests using signed discretionary
accruals confirm the stability of the findings and additionally suggest that dividend policy may
mitigate managerial discretion when the direction of accruals is considered. This study contributes
to the auditing literature by delineating the boundary conditions under which client demand
affects audit quality and offers practical implications for regulators and investors in emerging
markets.