The Role of Internal Audit Quality in Advancing Corporate Social Responsibility and Sustainable Development: A Cross-Country Analysis of Trade Sector Firms

Gulmira Appakova; Gulmira  Appakova; Yengilik  Baisheva; Nuradin  Kudaibergenov; Raushan Sadykova; Nurgul Maulina; Margarita Zholayeva

doi:10.48161/qaj.v6n2a2079

Authors

Assel Tekenova Department of Accounting, Narxoz University, Almaty 050035, Kazakhstan;
Gulmira Appakova Department of Accounting, Narxoz University, Almaty 050035, Kazakhstan;
Yengilik Baisheva Kenzhegali Sagadiev University of International Business, Almaty 050010, Kazakhstan; https://orcid.org/0009-0002-6717-3646
Nuradin Kudaibergenov Department of Economics, Kazakh Ablai Khan University of International Relations and World Languages, Almaty 050022, Kazakhstan; https://orcid.org/0000-0002-0943-5081
Raushan, Sadykova Almaty Management University, Almaty 050060, Kazakhstan; https://orcid.org/0000-0001-9670-2653
Nurgul Maulina Department of Business Technologies, Al-Farabi Kazakh National University, Almaty 050040, Kazakhstan; https://orcid.org/0009-0001-0113-8648
Margarita Zholayeva Department of Accounting and Analysis, L.N. Gumilyov Eurasian National University, 010008 Astana, Kazakhstan. https://orcid.org/0000-0002-7634-9132

DOI:

https://doi.org/10.48161/qaj.v6n2a2079

Keywords:

Corporate social responsibility (CSR), CSR maturity, Sustainable development, Internal audit quality, Non-financial re-porting, Social accounting, Trade sector.

Abstract

The aim of this study is to quantitatively assess the relationship between the quality of internal audit of non-financial information and the level of corporate social responsibility (CSR) maturity in trade sector companies in post-Soviet countries. The research method involved surveying 114 representatives of retail and wholesale enterprises from eight countries, followed by multiple linear regression analysis based on country-level aggregated data. The CSR maturity index was calculated based on five thematic areas reflecting the specifics of sustainable development. To assess the quality of internal audit, five independent variables were used: completeness of information, process automation, staff competence, independence of the audit function, and compliance with non-financial disclosure standards. The regression results showed a statistically significant positive association between CSR maturity and two factors: the availability and completeness of non-financial information (β = 0.614, p = 0.0028) and compliance with non-financial dis-closure standards (β = 0.634, p = 0.0045). The other factors process automation, staff competence, and independence of the audit function did not show a statistically significant association with CSR maturity. Thus, internal audit can become a key tool in enhancing the reliability of non-financial reporting and the development of CSR in the trade sector, provided there is a focus on ensuring information completeness and standardization. The practical significance of our study lies in the possibility of using the obtained results to improve the organization of internal audit as an effective tool for increasing the reliability and quality of information on corporate social responsibility.

Downloads

Download data is not yet available.

References

Arynova, Z., Bekniyazova, D., Kaidarova, S., Bespalyy, S., & Shelomentseva, V. (2026). Role of labor market indicators and demographic trends on the possibilities of planning socio-economic sustainable development of countries: Cluster analysis. International Journal of Sustainable Development and Planning, 21(1), 431–441.

Saeed, A., Noor, M., Soobaroyen, T., & Gull, A. A. (2024). Investigating the varying relevance of CSR dimensions on firm leverage: The implications for internationalized firms. Research in International Business and Finance, 71.

Bouidra, S., El Randour, F. E., & Hicham, D. (2025). The contribution of financial control to improve financial governance: The case of the Moroccan Court of Auditors. Qubahan Academic Journal, 5(4), 118–139.

Vasiljeva, M. V., Semin, A. N., Ponkratov, V. V., Kuznetsov, N. V., Kostyrin, E. V., Semenova, N. N., Ivleva, M. I., Zekiy, A. O., Ruban-Lazareva, N. V., & Elyakov, A. L. (2023). Impact of corporate social responsibility on the effectiveness of companies’ business activities. Emerging Science Journal, 7(3), 768–790.

Shanyu, L. (2022). Corporate social responsibilities (CSR) and sustainable business performance: Evidence from BRICS countries. Economic Research-Ekonomska Istraživanja, 35(1), 6105–6120.

Li, W., Yan, T., & Li, Y. (2025). Corporate social responsibility and financial performance in a cross-country context: A meta-analysis. Journal of Business Research, 190.

Al Masud, A., Hossain, M. T., Hossain, M. A., Naher, M. K., & Hasan, M. M. (2025). Enhancing financial performance through corporate social responsibility: Mediating role of environmental innovation and environmental performance. Cleaner and Responsible Consumption, 17.

Nikishin, A., Karashchuk, O., Mayorova, E., & Boldiasov, A. (2026). Clustering of Russian regions by socially important indicators of trade development. Veredas do Direito, 23.

Sindhu, M. I., Windijarto, Wong, W. K., & Maswadi, L. (2024). Implications of corporate social responsibility on the financial and non-financial performance of the banking sector: A moderated and mediated mechanism. Heliyon, 10(9).

Ali, S. (2022). The effect of corporate social responsibility on employee satisfaction, employee engagement and employee retention. KMF SME Review and Analysis, 1(1).

Kim, H. L., Rhou, Y., Uysal, M., & Kwon, N. (2017). An examination of the links between corporate social responsibility and its internal consequences. International Journal of Hospitality Management, 61, 26–34.

Suher, I. K., Bir, C. S., & Yapar, A. (2017). The effect of corporate social responsibility on employee satisfaction and loyalty: A research on Turkish employees. International Research Journal of Interdisciplinary & Multidisciplinary Studies, 3(1), 87–105.

Dung, P. T. H., Hien, H. T., & Son, N. P. (2023). The impact of CSR practice on employee engagement and intention to stay in the hotel industry: An ordered logit model approach. Journal of Science and Technology Issue on Information and Communications Technology, 93–98.

Grover, P., Kar, A. K., & Ilavarasan, P. V. (2019). Impact of corporate social responsibility on reputation—Insights from tweets on sustainable development goals by CEOs. International Journal of Information Management, 48, 39–52.

Rahman, R., Azlina, A., & Kassim, A. A. M. (2019). Corporate social responsibility and company reputation: A conceptual framework. 3, 24–36.

Kostenkova, T. A. (2023). Corporate social responsibility as an element of the business reputation of a modern enterprise. Problems of Branch Economics, 2, 79–86.

Berber, N., Aleksić, M., Slavić, A., & Strugar Jelača, M. (2022). The relationship between corporate social responsibility and corporate reputation in Serbia. Engineering Economics, 33, 232–245.

Idun, A., & Gamado, J. (2021). Corporate social responsibility and access to finance: A study of firms on the Ghana Stock Exchange. Journal of Business and Enterprise Development, 8, 206–240.

Liao, L., Pan, Y., & Yao, D. (2022). Capital market liberalization and voluntary corporate social responsibility disclosure: Evidence from a quasi-natural experiment in China. Accounting and Finance.

Hmaittane, A., Mzali, B., Mnasri, M., & Ghilal, R. (2020). The impact of corporate social responsibility on oil and gas firms' access to finance. Journal of Accounting and Finance, 20, 53–65.

Saidi, J., Sari, R. N., Hendriani, S., Machasin, M., Savitri, E., Efni, Y., & Iznillah, M. L. (2025). The role of audit report readability in linking management characteristics to corporate sustainability performance: A study of Indonesian SOEs. Qubahan Academic Journal, 5(4), 61–83.

Jayiya, S., Makwambeni, B., & Adebayo, J. (2022). PR practitioners' conceptualisation of the role of stakeholder engagement in corporate social responsibility planning and implementation. African Journal of Inter/Multidisciplinary Studies, 4, 76–85.

Collinge, W. (2020). Stakeholder engagement in construction: Exploring corporate social responsibility (CSR), ethical behaviours and practices. Journal of Construction Engineering and Management, 146(3).

Niskanen, T. (2022). Evaluation of sociotechnical systems in managing corporate social responsibility and stakeholders' engagement. In Collection of studies on the development of socially responsible business (pp. 2023–2046).

Rampersad, R. (2017). Corporate social responsibility: Applying sustainability principles in stakeholder engagement. Corporate Ownership and Control, 14(2), 222–229.

Zamroni, A., Putri, W., & Sagala, S. (2022). Evaluation of corporate social responsibility programs for local communities around mining companies in Kalimantan, Indonesia. Sustinere: Journal of Environment and Sustainability, 6, 66–78.

Edo, Z., & Abraham Ejogba, O. (2023). Restructuring towards sustainable development: The role corporate social responsibility should play in the development of the Niger Delta Region. Journal, 21, 65–80.

Ring, J. (2021). Operationalizing sustainable development, stakeholder theory, corporate social responsibility to improve community engagement outcomes. Journal of Sustainable Development, 15(1), 1.

Pathak, N., Choudhury, S., Kumar, V., & Kumbhani, C. (2017). Corporate social responsibility activities by Ambuja Cements Limited. Journal of Mines, Metals and Fuels, 65, 199–204.

Biswas, U. N., Allard, K., Pousette, A., & Härenstam, A. (2017). Corporate social responsibility and equal opportunities for men and women as organizational values. In Understanding attractive work in a globalized world (pp. 37–72). Springer.

Kanwal, S., Al Mamun, A., Wu, M., Bhatti, S. M., & Ali, M. H. (2024). Corporate social responsibility: A driver for green organizational climate and workplace pro-environmental behavior. Heliyon, 10(19).

Radolov, V. S., Chaynikov, V. N., Semenov, V. L., Mityugina, M. M., Kravchenko, T. V., Pavlov, V. V., Perfilova, E. F., & Gorbunova, P. G. (2025). Quality management, ecological responsibility and environmental sustainability at strategic, operational and tactical levels of the organization. International Journal of Ecosystems and Ecology Science, 15(4), 237–244.

Rochford, K., Tennety, N., & Moodle, R. (2019). Revisiting the impact of business on health. BMJ Global Health, 4, 1–5.

Pulker, K. E., Trapp, G. S. A., Scott, J. A., et al. (2018). Global supermarkets corporate social responsibility commitment to public health. Global Health, 14, 121.

Derani, C. (2022). To ensure sustainable production and consumption patterns. Latin American Journal of European Studies, 2, 357–393.

Saginova, O. V., Zavyalov, D. V., & Zavyalova, N. B. (2023). Responsible consumption models. WORLD (Modernization. Innovation. Research), 14(1), 146–160.

Peretz, A., & Strønen, F. (2022). CSR in the retail food industry. European Conference on Management Leadership and Governance, 18, 365–372.

Gazzola, P., & Ferioli, M. (2023). Non-financial reporting and sustainability performance. In Sustainable management in Corpus B (pp. 46–64).

Klychova, G., Salakhutdinova, E., & Mukhamedzyanov, K. (2022). Non-financial reporting: Stages and procedures of preparation. International Accounting, 25, 1346–1359.

Korzovatykh, Z. (2023). Trends in the development of non-financial reporting of economic entities. Ekonomika i Upravlenie: Problemy, Resheniya, 5(2), 108–115.

Turzo, T., Marzi, G., Favino, C., & Terzani, S. (2022). Non-financial reporting research and practice: Lessons from the last decade. Journal of Cleaner Production, 345, 131154.

Kaspina, R., & Samoilova, N. (2020). Audit of non-financial information. Accounting, Analysis, Auditing, 7(4), 71–80.

Internal Audit Foundation, IIA, & EY. (2022). Prioritizing environmental, social, and governance: Exploring internal audit’s role as a critical collaborator.

Dineva, V. (2019). The role of internal audit in corporate social responsibility strategies. Economic Alternatives, 2, 287–295.

Jokipii, A., & Rautiainen, A. (2023). Quo vadis, internal auditing? A vision for internal auditing in 2030. International Journal of Auditing.

Bonrath, A., Eulerich, M., & Lopez Kasper, V. (2022). Internal auditor's role in ESG disclosure and assurance: An analysis of practical insights. SSRN Electronic Journal.

Katkov, Y., Romanova, A., & Katkova, E. (2025). Economic security of agro-industrial organizations in the era of technological singularity: A hybrid model approach. International Journal of Safety and Security Engineering, 15(5), 997–1005.

Eulerich, M., Bonrath, A., & Lopez Kasper, V. (2022). Internal auditor’s role in ESG disclosure and assurance: An analysis of practical insights. Corporate Ownership and Control, 20, 78–86.

Al-Shaer, H., & Zaman, M. (2018). Credibility of sustainability reports: The contribution of audit committees. Business Strategy and the Environment, 27.

Quyen, P. (2022). The relationship between internal audit and sustainable development: Quantitative study. In European Proceedings of Social and Behavioural Sciences, 838–851.

DeSimone, S., D’Onza, G., & Sarens, G. (2020). Correlates of internal audit involvement in sustainability audits. Journal of Management and Governance.

Engelbrecht, L., Yasin, Y., & Omarji, I. (2018). The role of the internal audit function in integrated reporting: An emerging economy perspective. Meditari Accountancy Research, 26(4), 657–674.

CSP Platform & X5 Retail Group. (2021). The social role of retail. Retail Laboratory, 7.

Arynova, Z., Kaidarova, S., Bekniyazova, D., Zolotareva, S., Shelomentseva, V., Zhanuzakova, S., & Mussina, A. (2025). The impact of consumer behavior on the formation of sustainable development strategies of companies in the context of digitalization and virtualization. Qubahan Academic Journal, 5(3), 385–397.

Lochan, S. A., Rozanova, T. P., Bezpalov, V. V., & Fedyunin, D. V. (2021). Supply chain management and risk management in an environment of stochastic uncertainty (retail). Risks, 9(11), 197.

Retail Laboratory. (2022). Throw away or use? Opportunities and barriers to foodsharing practices in Russia.

ReFED. (2018). Retail food waste action guide.

EXIM EXPO. (2022). Demand for organic products is growing in Kazakhstan.

SberMarket. (2022). Russians began buying fresh natural products 68% more often.

NielsenIQ. (2022). Convenience store shoppers are shifting to healthier, fresher categories.

Chumakova, E., Korneev, D., Gasparian, M., Ponomarev, A., & Makhov, I. (2025). Developing an ensemble of neural networks to assess operational risks triggered by employee errors or misconduct. Journal of Theoretical and Applied Information Technology, 103(18), 7458–7467.

KFC. (2019). Study on the impact of volunteering on HR. Vedomosti.

Fan, T. T. K. (2022). Assessing the contribution of internal audit to ensuring the quality of disclosed non-financial information. Bulletin of Eurasian Science, 14(3), 1–12.

Beksultanov, A. A., Dulambaeva, R. T., & Ziyadin, S. (2018). Issues of state and municipal management, 4, 94–119.

Saprykina, O. A., Fadeikina, N. V., & Krasnova, M. V. (2020). On the improvement of corporate social policy and social accounting. Accounting, Control and Analysis, 4, 81–89.