The engagement of auditors in the reporting of corporate social responsibility information

Abstract

In this research, we aim to examine how large auditing firms and audit/non-audit fees affect corporate social responsibility (CSR) disclosure. We show that the big four auditing firms and the audit and non-audit fees paid by audited firms encourage CSR reporting. Overall, our findings suggest that big auditing firms play a relevant role in CSR disclosure, which may help to mitigate informative asymmetries between managers and stakeholders. Furthermore, audit and non-audit fees paid by audited companies promote voluntary non-financial information disclosure. These findings should be of interest to policymakers given the relevant role that CSR disclosure may play in the decision-making processes of all stakeholders.