Statutory auditors’ readiness for mandatory sustainability reporting assurance: an institutional logics perspective

Abstract

Under the Corporate Sustainability Reporting Directive (CSRD), sustainability reporting assurance is mandatory and in certain countries, only statutory auditors are permitted to provide this service. For many, the service represents a new professional responsibility. This study aims to evaluate statutory auditors’ readiness to provide sustainability reporting assurance, differences in their motivations and challenges and perceived benefits for companies. Using institutional logics as the theoretical framework, we analyzed survey responses from 283 statutory auditors based in Poland in 2024. We used descriptive statistics and selected statistical tests to evaluate auditors’ perspectives on their new responsibilities. There are differences between auditors who declare their readiness to provide assurance services and those who do not with respect to several challenges related to the new roles, including a lack of experience and assurance-related knowledge, unfamiliarity with sustainability regulations, perceptions of the costs associated with preparing for assurance and shortages of qualified personnel. In addition, these groups also differ in their perceptions of the benefits for companies, such as increased stakeholder trust, improved reputation, better risk management, access to new markets, employee engagement and increased operating efficiency. The findings suggest that statutory auditors’ motivations for providing assurance services are driven primarily by fiduciary logic, which is reflected in their aspirations to develop new skills and competencies as well as their interest in sustainability-related topics. In contrast, the challenges cited by auditors indicate that while those ready to provide assurance are guided by fiduciary logic focused on professional responsibility, those deterred by the heavy workloads associated with auditing financial statements or personnel shortages are guided by a commercial logic prioritizing efficiency and profitability.