Corporate social responsibility disclosure and informational quality of audit reports

Fong Yew Ong*

*Corresponding author for this work

Research output: Chapter in Book/Report/Conference proceedingConference contribution

Abstract

This study seeks to understand the relationship between Corporate Social Responsibility (CSR) and the informational quality of independent auditor's report. Using stakeholder theory, this study seeks to determine if firms with high CSR disclosures sought to improve stakeholders' informational interest in the independent auditors' report, by ensuring the ease of reading of the key audit matters (KAMs) of the audit report. A total of 59 sample manufacturing firms were identified from the Main Market of Bursa Malaysia, and content analysis were performed on the annual reports of these samples to establish the level of CSR disclosure. The readability of KAMs of these firms were analyzed using the Flesch reading ease score. The findings suggest that there is no significant relationship between the level of CSR disclosure and the readability level of KAM. However, there is a significant positive relationship between CSR disclosure and the appointment of big four accounting firms, suggesting that the appointment of accounting firm from the big four play a role in improving CSR.

Original languageEnglish
Title of host publicationThe 5th Innovation and Analytics Conference and Exhibition (IACE 2021)
PublisherAIP Publishing
ISBN (Electronic)9780735443877
DOIs
Publication statusPublished - 19 Aug 2022
Event5th Innovation and Analytics Conference and Exhibition 2021 - Kedah, Virtual, Malaysia
Duration: 23 Nov 202124 Nov 2021

Publication series

NameAIP Conference Proceedings
Volume2472
ISSN (Print)0094-243X
ISSN (Electronic)1551-7616

Conference

Conference5th Innovation and Analytics Conference and Exhibition 2021
Abbreviated titleIACE 2021
Country/TerritoryMalaysia
CityKedah, Virtual
Period23/11/2124/11/21

ASJC Scopus subject areas

  • Physics and Astronomy(all)

Fingerprint

Dive into the research topics of 'Corporate social responsibility disclosure and informational quality of audit reports'. Together they form a unique fingerprint.

Cite this