THE ROLE OF SUSTAINABILITY AUDIT IN PROVIDING ASSURANCE ON THE VALIDITY AND ACCOUNTABILITY OF ESG DISCLOSURE

Abstract

This study aims to analyze the role of sustainability audit in providing assurance on the validity and accountability of Environmental, Social, and Governance (ESG) disclosure. The research employs a Systematic Literature Review (SLR) approach by examining 30 articles published between 2015 and 2025 from databases such as Scopus, ScienceDirect, SpringerLink, and MDPI. The selection process was conducted using Covidence, with inclusion criteria focusing on peer-reviewed articles related to sustainability audit and ESG assurance. The findings reveal that sustainability audit plays a crucial role in enhancing the validity of ESG disclosures through independent verification of non-financial data and strengthening corporate accountability through external assurance mechanisms. However, its effectiveness is influenced by auditor quality and independence, the strength of regulatory frameworks and international standards, and the integration between internal and external audits. The study also identifies significant differences between assurance practices in developed and developing countries, where developing nations still face limitations in regulations and auditor competence. Overall, the results highlight that sustainability audit functions as a key governance mechanism that improves corporate credibility, transparency, and accountability in ESG reporting. The study recommends harmonizing assurance standards across countries and enhancing the capacity of sustainability auditors to ensure consistency, reliability, and quality of ESG reporting globally.