Abstract
[Purpose] As the societal demand for ESG has increased recently, auditors are facing a situation where non－financial factors need to be considered along with financial factors. This study empirically examines whether the audit quality affects the level of ESG within companies.
 [Methodology] This study measures audit quality using variables such as audit fees, audit hours, and the status of large accounting firms. The ESG level of companies is measured using ESG information from the KCGS. We perform empirical analyses while controlling for various factors that may affect both audit quality and the ESG level.
 [Findings] Our empirical results reveals a significant positive correlation between audit quality and the ESG level of companies. We also perform robustness analysis to address cause issues by adjusting the time difference between audit quality and the ESG level. The results of robustness analysis support our hypothesis.
 [Implications] The findings of this study suggest that audit quality plays an important role in ESG, which is considered a crucial element for corporate sustainability. Our results provide empirical evidence for the need for auditor certification related to non－financial indicators.
Published Version
Talk to us
Join us for a 30 min session where you can share your feedback and ask us any queries you have
Schedule a callDisclaimer: All third-party content on this website/platform is and will remain the property of their respective owners and is provided on "as is" basis without any warranties, express or implied. Use of third-party content does not indicate any affiliation, sponsorship with or endorsement by them. Any references to third-party content is to identify the corresponding services and shall be considered fair use under The CopyrightLaw.
