["Australian Accounting Review, Volume 36, Issue 1, Page 9-25, March 2026. ", "\nABSTRACT\n\nThis study examines how linking executive compensation to corporate social responsibility (CSR) metrics affects audit fees. The findings reveal that CSR‐linked compensation increases audit fees, a result consistent with agency theory which suggests that such contracts can exacerbate managerial opportunism. This research identifies potential underlying channels through which CSR‐linked compensation affects audit pricing. Furthermore, the positive relationship is strengthened for auditors with longer tenure or industry expertise but weakened for firms with higher institutional ownership. Overall, this work highlights increased audit fees as a significant cost of CSR‐linked compensation, revealing its dark side from a risk assessment perspective.\n\n"]