Tzika, Vasiliki

2018-05-07T00:00:18Z

https://repository.ihu.edu.gr//xmlui/handle/11544/29093

Corporate Social Responsibility

Sustainability Assurance

CSR reporting

masterThesis

Social responsibility of business

Auditing--Fees

free

School of Economics, Business Administration and Legal Studies, MSc in International Accounting, Auditing and Financial Management

This dissertation was written as part of the MSc in International Accounting, Auditing and Financial Management at the International Hellenic University. Prior studies show the importance of corporate social responsibility (CSR) for the society and provide steps that have been taken t o disclose such information, while there is a paucity in the literature regarding the audit implications. This study examines the impact of CSR on the determination of the Audit Fees, using a large sample of publicly traded European firms for the period 2012 - 2016. We find a strong positive association between CSR and Audit Fees, meaning that highly rated companies for CSR activities pay more audit fees. But this association becomes negative for companies which are located in countries where there is a well - structured framework for sustainability reporting. We interpret this finding as suggesting that auditing for environmental, social and governance issues is a complex procedure that requires increased audit effort, taking into consideration that the reports will be longer and despite the financial assurance, an auditor has to provide sustainability assurance as well. Also, the recently introduced concept of CSR and the absence of a common legal framework for CSR disclosure, even among European countries, make the audit role more demanding. Taken together, our research linked CSR with Audit Fees and suggest that establishing firms’ nonfinancial disclosures may lead to harmonization of accounting policies, enhancing the transparency. Last but not least, the need for awareness and further accounting education on CSR policies should be highlighted, as a measure to eliminate economic scandals and restrict Audit Fees

Bozos, Konstantinos

ihu

2012 - 2016