Assessing the Impact of ESG Standards and Regulations on the Audit Process
The purpose of this paper is to assess the impact of ESG (Environmental, Social, and Governance) standards and regulations on the audit process. The growing significance of sustainability in business, driven by regulatory pressure, stakeholder expectations, and the demand for transparency, has tr...
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| Main Authors: | , , |
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| Format: | Article |
| Language: | English |
| Published: |
Ovidius University Press
2025-02-01
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| Series: | Ovidius University Annals: Economic Sciences Series |
| Subjects: | |
| Online Access: | https://stec.univ-ovidius.ro/html/anale/RO/2024i2/Section%205/17.pdf |
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| Summary: | The purpose of this paper is to assess the impact of ESG (Environmental, Social, and
Governance) standards and regulations on the audit process. The growing significance of
sustainability in business, driven by regulatory pressure, stakeholder expectations, and the demand
for transparency, has transformed the audit landscape. Auditors now play a key role in verifying
ESG disclosures, ensuring compliance with frameworks like the EU Taxonomy, SFDR, and TCFD
recommendations, and safeguarding against risks such as greenwashing. As businesses integrate
ESG criteria into their strategies, auditors must adapt methodologies to evaluate non-financial,
often subjective, data. Independent assurance on ESG reporting is increasingly vital to enhance
credibility, meet regulatory requirements, and build stakeholder trust. This evolution highlights the
critical role of auditors in promoting transparency, accountability, and long-term business
resilience in an environment where ESG factors are reshaping corporate practices globally. |
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| ISSN: | 2393-3127 |