The Influence of Corporate Social Responsibility (CSR) Reporting on Financial Auditing: A Systematic Literature Review

Abstract

This systematic literature review (SLR) explores the relationship between Corporate Social Responsibility (CSR) reporting and financial auditing, focusing on the role of audit committees, audit quality, and financial audits in enhancing CSR disclosure practices. The review synthesizes findings from 16 empirical studies published between 2017 and 2025, examining various global contexts, including Australia, Iran, South Korea, the UK, China, the Gulf Cooperation Council (GCC) countries, Jordan, and others. The analysis highlights key themes such as the impact of audit committee characteristics (e.g., independence, expertise, and size) on the quality of CSR reporting, the importance of audit quality in ensuring credible CSR disclosures, and the growing integration of financial audits with CSR assurance processes. The review also identifies the complementary roles of internal audit functions and governance structures in enhancing sustainability and CSR reporting practices. The findings suggest that audit committees with specialized expertise and high-quality audits contribute to more reliable and transparent CSR disclosures, fostering greater accountability and trust among stakeholders. Despite the significant contributions of these studies, gaps in the literature remain, particularly in the context of emerging markets and the role of digital technologies in CSR and auditing practices. Future research should explore these areas to deepen the understanding of how financial audits influence CSR reporting in diverse organizational and geographical settings. This review provides valuable insights for policymakers, auditors, and corporate governance practitioners seeking to improve CSR reporting standards globally.