Corporate Social Responsibility, Audit Fees, And Audit Opinions

Corporate Social Responsibility (CSR) has attracted an unprecedentedly high level of at-tention in the past several years as regulators, investors, customers and communities havecome to require greater transparency from companies in the wake of corporate scandals. Cor-respondingly, corporate social responsibility information has increasingly attracted muchconcern. Undertaking corporate social responsibility has become a trend for corporates tosustainable development. Facing such increasingly competitive market, potentiallygoing-concern ability of company is suspicious. Although certified public accountants audit isbased on the financial statements, but non-financial information such as social responsibilitycan enhance the Information transparence. also can reduce the risks of issuing improper opi-nions while failed to timely detect the bad information about going-concern ability. the rec-ognition by investors and regulators of the important role of auditing as a mechanism for in-creasing corporate transparency. Disclosing corporate social responsibility information con-duce to reducing information asymmetry, reducing audit risks, finally, that will do influenceon audit fee. In china, there are rarely researchers discussing the relation of corporate socialresponsibility information and behavior of auditors. In this article, I will connect corporatesocial responsibility information and audit to research the effect of corporate social responsi-bility information on audit fee and audit opinion.We examine whether and how auditors respond to the Corporate Social Responsibility(CSR) of their client firms, using a sample of2011form HU and SHEN stock exchange. Wefind that auditors ask lower audit fees and reduce the propensity to issue going concern opi-nions to client firms with good CSR performance, but increase them for clients with didn’tissuing CSR report. Corporate Social Responsibility (CSR) not only can reduce the client’sbusiness risks, help strict about earning management, but also can reduce audit risks. Fur-thermore, auditors will take Corporate Social Responsibility (CSR) into their condition whileplanning audit work and evaluating risks.