Background: The introduction of the Corporate Sustainability Reporting Directive (CSRD) is an important shift in European sustainability reporting. As companies adapt to the new directive, auditors play a crucial role in ensuring compliance with the European Sustainability Reporting Standard (ESRS). This raises the question regarding the readiness of audit firms to carry out this task effectively.

Purpose: The purpose of this study is to assess the readiness of Swedish audit firms for reviewing sustainability reports under CSRD. It analyses readiness using Institutional Theory and Organizational Readiness for Change. These frameworks help understand how audit firms adapt to regulatory pressures and what internal requirements must be met to successfully implement CSRD.

Method: A qualitative study was conducted, using semi-structured interviews with 13 auditors from five different audit firms in Sweden. The data was analyzed using a thematic analysis following the Gioia method which allowed the development of the conceptual model.

Conclusion: Swedish audit firms have made great progress towards ensuring readiness. However, true readiness requires more than compliance. Organizational Readiness for Change highlight how psychological and structural readiness are essential for effective sustainability assurance. The study emphasizes the need for readiness to be complete on both a structural level and a psychological level for CSRD implementation to be successful.