The implementation of European regulations are significant challenges for Georgian audit firms, which, first of all, involves harmonious compliance with the complex system of environmental, social and governance (ESG) reporting standards, as well as eliminating gaps in expertise and technological infrastructure to the maximum extent. Due to the very fact, it is necessary for Georgian companies to develop audit capabilities for managing and verifying sustainability data in order to comply with the strict requirements of the Corporate Sustainability Reporting Directive (CSRD). Our study analyzes the impact of the CSRD on audit practice and discusses the challenges that audit firms face when verifying sustainability reporting. Special attention is paid to the need for expertise in environmental, social and governance (ESG) reporting standards, adaptation to the European Sustainability Reporting Standards (ESRS) and the introduction of digital technologies in audit processes. The paper examines the impact of CSRD on local audit firms, and consequently, their compliance with international standards. Based on the analysis of audit practice, the study offers recommendations and strategies for Georgian audit firms that will help them adapt to new regulations and improve the quality of sustainability report audits.