Corporate Social Responsibility Risk and Audit Opinion

Abstract

This article studies the impact of corporate social responsibility on audit costs. Most of the previous studies are based on the social responsibility report level. This paper starts with the third party rating agency's assessment of corporate social responsibility risk to carry out research on its impact on audit costs. It is found that corporate social responsibility risk will significantly increase the audit costs. At the same time, this paper finds that the audit of the company by the international big four accounting firms or the company's social responsibility report may reduce the impact of social responsibility risk on audit costs.

Examining the Relationship between Size of the company, Ownership Structure, and Corporate Governance with Corporate Social Responsibility Disclosure in Iran

“…The results are in line with those of Fang et al (2019) stating that large corporations in the center of special attention are different groups in the community, therefore under more pressure to disclose social responsibility to legalize the activities of this group of companies. Thus, they found a positive and significant relationship between CSR and the size of the company.…”

“…In examining the relationship between social responsibility and the financial performance of large corporations, Fang et al (2019) found that large corporations are at the center of special attention of various groups in the community; thus, there is more pressure to disclose social responsibility to legalize activity in this group of companies. Hence, they found a positive and significant relationship between CSR and the size of the company.…”

“…The significance of paying attention to social responsibility becomes clear when organizations try to obtain the same groups of customers with the same products or services (Bamber and Paolin, 2008). Fang et al (2019) stated that large companies are at the center of the special attention of various groups in the community, so they are under more pressure to disclose social responsibility to legalize the activities of this group of companies. Thus, they found a positive and significant relationship between CSR and the size of the company.…”