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Financial Auditor and Sustainability Reporting: Does it matter?

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  • Belen Fernandez‐Feijoo
  • Silvia Romero
  • Silvia Ruiz

Abstract

The objective of this paper is to investigate the yet‐to‐develop assurance market, its links with the mature auditing market, and the role that the Big4 auditing firms (KPMG, EY, PwC, and Deloitte) play in the former. We use data submitted to the Global Reporting Initiative by companies in 18 countries, for the years 2011–2013, in order to obtain a global overview that allows generalization of the results. We find higher levels of disclosure and increased credibility of sustainability reports (SRs) when the financial auditor is a Big4. Companies audited by a Big4 are more likely to assure the SR than those audited by a non‐Big4. Our paper confirms the connection between financial auditor and assurer of SR provider in an international setting: the choice of a Big4 as a financial auditor is a driver for the choice of a Big4 as an assurer provider, suggesting a potential competitive advantage. Copyright © 2017 John Wiley & Sons, Ltd and ERP Environment

Suggested Citation

  • Belen Fernandez‐Feijoo & Silvia Romero & Silvia Ruiz, 2018. "Financial Auditor and Sustainability Reporting: Does it matter?," Corporate Social Responsibility and Environmental Management, John Wiley & Sons, vol. 25(3), pages 209-224, May.
    • Handle: RePEc:wly:corsem:v:25:y:2018:i:3:p:209-224
    DOI: 10.1002/csr.1449
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    3. Hamed, Ruba Subhi & Al-Shattarat, Basiem Khalil & Al-Shattarat, Wasim Khalil & Hussainey, Khaled, 2022. "The impact of introducing new regulations on the quality of CSR reporting: Evidence from the UK," Journal of International Accounting, Auditing and Taxation, Elsevier, vol. 46(C).
    4. Giuseppe Sannino & Manuela Lucchese & Giovanni Zampone & Rosa Lombardi, 2020. "Cultural dimensions, Global Reporting Initiatives commitment, and corporate social responsibility issues: New evidence from Organisation for Economic Co‐operation and Development banks," Corporate Social Responsibility and Environmental Management, John Wiley & Sons, vol. 27(4), pages 1653-1663, July.
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    7. Habiba Al‐Shaer, 2020. "Sustainability reporting quality and post‐audit financial reporting quality: Empirical evidence from the UK," Business Strategy and the Environment, Wiley Blackwell, vol. 29(6), pages 2355-2373, September.
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    9. Giovanni Zampone & Giuseppe Sannino & Isabel‐María García‐Sánchez, 2023. "Exploring the moderating effects of corporate social responsibility performance under mimetic pressures. An international analysis," Corporate Social Responsibility and Environmental Management, John Wiley & Sons, vol. 30(1), pages 53-65, January.

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