Audit Quality Indicators Across Jurisdictions: Regulatory Diversity, ESG Integration, and Implications for Public Trust

Alexandros Garefalakis (), Ioannis Sitzimis, Erasmia Angelaki, Panagiotis Giannopoulos and Panagiotis Kyriakogkonas
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Alexandros Garefalakis: Department of Business Administration and Tourism, Hellenic Mediterranean University, 714 10 Iraklio, Greece
Ioannis Sitzimis: Department of Business Administration and Tourism, Hellenic Mediterranean University, 714 10 Iraklio, Greece
Erasmia Angelaki: Department of Business Administration and Tourism, Hellenic Mediterranean University, 714 10 Iraklio, Greece
Panagiotis Giannopoulos: School of Social Sciences, Hellenic Open University, 263 35 Patra, Greece
Panagiotis Kyriakogkonas: Department of Accounting and Finance, University of Western Macedonia, 501 00 Kozani, Greece

Sustainability, 2025, vol. 17, issue 21, 1-32

Abstract: Audit Quality Indicators (AQIs) have become vital tools for assessing and improving audit performance. This study examines how AQIs are defined, implemented, and interpreted across jurisdictions, with a particular focus on their integration into ESG (Environmental, Social, and Governance) assurance. Through a cross-jurisdictional comparison covering the EU, UK, US, and Canada, we analyze regulatory diversity and explore how different oversight models influence AQI adoption. Our findings reveal that AQIs play an increasingly important role not only in enhancing audit transparency but also in reinforcing the credibility of sustainability reporting under evolving frameworks like the EU’s Corporate Sustainability Reporting Directive (CSRD). However, implementation remains fragmented, and standardization challenges persist. The study offers empirical insights from a large-scale survey of audit professionals, highlighting how perceptions of audit quality vary by country, experience, and organizational context. We conclude that the harmonization of AQI frameworks, especially with ESG-focused metrics, is essential to foster public trust and ensure the accountability of sustainability assurance.

Keywords: audit quality indicators (AQIs); ESG assurance; CSRD; audit transparency; cross-jurisdictional comparison; sustainable reporting standards; corporate accountability; greenwashing prevention (search for similar items in EconPapers)
JEL-codes: O13 Q Q0 Q2 Q3 Q5 Q56 (search for similar items in EconPapers)
Date: 2025
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