The relationship of social responsibility disclosure on corporate audit operations

Auditing in society's main task and role are to accredit companies' financial statements. Considering the importance of audit operations and disclosure of social responsibility by companies, the present study investigated the relationship of social responsibility disclosure on audit operations.

 We have made a sample of 125 companies listed on the Tehran Stock Exchange, studying a seven-year sample period from 2015 to 2021 and measured their extent of social responsibility disclosure as an independent variable (based on a standard checklist included 17 components (consists of three main dimension: social, environmental and economic). We have examined its effect on the auditor's opinion and the delay in the auditor's report as two dependent variables in two regression models separately. 

The first hypothesis showed that the disclosure of corporate social responsibility has a significant positive effect on the type of statement submitted by the company auditor. The Second hypothesis showed that a Positive relationship between social responsibility disclosure and delay in providing audit report.

We concluded that social responsibility disclosure directly affects the auditor's opinion and indicates that the more corporate social responsibility disclosure, the higher the quality of financial statements. Disclosure of social responsibility delays in submitting an audit report shows an Positive and significant relationship.

Enlightenment: 

Finally, the results of this study contribute to the literature by highlighting the role of the social responsibility disclosure in the audit operations and judgment and decision-making in accounting.