The Research Status and Prospect of the Relationship between ESG Performance and Audit

Abstract

In recent times, ESG has become an important aspect and indicator for evaluating the sustainable development, governance performance and social values of enterprises and organizations. In the field of audit, ESG has gained increasing importance, becoming an indispensable reference and influential factor. By thoroughly reviewing the relevant literature on the relationship between ESG and audit published on CNKI and WOS until September 2024, this paper aims to analyze the current research status, summarize the mutual effect and mechanism between these two domains. This study primarily focuses on two lines: firstly, it explores the impact of ESG performance on audit pricing, audit quality, and audit outcomes. Secondly, it studies how audit behavior and processes influence ESG performance. The findings suggest that favorable ESG performance generally leads to reduced audit pricing, enhanced audit quality, and increased likelihood of issuing positive audit reports. However, it is important to note that such conclusions are based on general discussions as some studies have reported contradictory results. Therefore, further exploration and discussion are needed for in-depth study in this area. Moreover, audits predominantly play a constructive role in promoting ESG performance. Based on these insights, this paper categorizes the mechanisms while discussing future research prospects with an aim to provide valuable references.