Abstract: Driven by policy and regulatory guidelines, the ESG management capabilities and disclosure standards of Chinese listed companies have steadily improved. This paper uses listed companies with ESG ratings from 2009 to 2021 as a sample to explore the impact of the ESG audit model on earnings management in listed companies. Empirical analysis reveals that there is a significant negative correlation between ESG performance and audit costs, meaning that higher ESG ratings are associated with lower audit fees. Further analysis indicates that strong ESG performance can effectively reduce redundant management, suggesting that robust ESG responsibility can mitigate corporate risks, enhance corporate value, improve operational conditions, and further lower audit costs by curbing redundant management. This study enriches the existing research findings on the relationship between ESG performance and audit costs related to earnings management, providing theoretical basis for how to improve corporate ESG performance and strengthen ESG audit supervision.

Keywords: ESG Performance, Surplus Management, Audit Expenses, Audit Model, Dual Carbon Goal, Disclosure of Information

Pages: 1482-1490