Does the level of corporate carbon disclosure affect the audit opinion decision?

Abstract

Enterprises are battling issues with economic growth and environmental protection while reaping the benefits of low carbon development as the driving force behind China's "Carbon Dafeng Carbon Neutral Target". Will the high degree of carbon information disclosure increase the issue of standard audit opinions under the non-mandatory carbon information disclosure principle? In order to investigate the mechanism of the role of material misstatement risk between the two, this paper chooses A-share listed companies in Shanghai and Shenzhen from 2009 to 2021 and conducts an empirical test of the impact of the level of carbon information disclosure on the issuance of standard audit opinions. It is discovered that for businesses having high quantities of carbon information, auditors are more likely to offer standard audit opinions.