Welcome to Revise and Resubmit, the podcast that brings you the latest insights from the world of academic research, sparking ideas that challenge the way we think about business and society. Today’s episode dives into a fascinating commentary article titled Catch Me If You Match! A Discussion of Auditors' Involvement in Clients' Sustainability Reporting, written by Bertrand Malsch and published in the Accounting, Organizations and Society journal by Elsevier.
This commentary explores an emerging trend in auditing: the relationship between an auditor’s sustainability focus and their clients' sustainability reporting. Drawing from the work of Liu et al. (2023), Malsch discusses how auditors aren’t just scorekeepers anymore—they're active participants in shaping how companies report on their environmental, social, and governance activities. With sustainability reporting becoming a hot topic, especially with increased regulatory scrutiny, auditors and clients are forming strategic partnerships. But here’s where it gets even more intriguing: Malsch highlights the concept of “positive assortative matching,” suggesting that clients are intentionally aligning with auditors who share their sustainability values. Imagine that—their tweets alone could be an indicator of how deeply auditors are invested in sustainability!
So here’s the big question: As auditors become more involved in sustainability, can they maintain their objectivity, or are we witnessing a shift in the traditional role of auditing?
A special thanks to Bertrand Malsch and Elsevier for shedding light on this evolving dynamic. Let’s get into the debate!
Reference
Malsch, B. (2024). Catch me if you match! A discussion of auditors' involvement in clients’ sustainability reporting. Accounting, Organizations and Society. https://doi.org/10.1016/j.aos.2023.101536
Liu, M., Tang, J., Walton, S., Zhang, Y., & Zhao, X. (2023). Auditor sustainability focus and client sustainability reporting. Accounting, Organizations and Society. https://doi.org/10.1016/j.aos.2023.101512
