Abstract

Objective: Audit firms are increasingly engaging in corporate social responsibility (CSR) activities. This study aims to examine the impact of audit firms' social responsibility on enhancing their reputation.

Method: The present study is applied in terms of purpose and descriptive-survey in terms of the relationship between variables. The statistical population consists of firms that are members of the Iranian Association of Certified Public Accountants (IACPA). The required data for the CSR variable were collected through a questionnaire, while data for other variables were extracted from the IACPA website. The statistical method used in this study is multiple regression analysis.

Findings: The findings confirm the research hypotheses and indicate that the social responsibility of audit firms has a positive effect on their revenue growth. This positive effect is stronger for smaller audit firms and those that are not accredited by the stock exchange.

Conclusion: Based on the results of this study, we found that the social responsibility of audit firms leads to an increase in their revenues, with this effect being more pronounced for smaller and non-accredited audit firms. The study suggests that CSR can serve as a mechanism for enhancing the reputation of audit firms, ultimately leading to revenue growth. In particular, this revenue-increasing effect is more significant for smaller firms and those not accredited by the stock exchange.

Contribution to Knowledge: This study can have positive implications for audit firms (including enhanced reputation, attracting new clients, and revenue growth), companies (strengthening relationships with audit firms), and investors (reducing investment risk). Additionally, despite existing limitations, it can contribute to future research in this field and provide a recommendation for regulatory bodies in Iran to mandate CSR disclosure for audit firms, similar to regulations in some other countries.