Interpretive Evaluation of Green Audit Quality in Presence of Sustainable Reporting Readability Themes of Capital Market Companies

Subject Areas : Environmental Economics

Javad  Faramarz ¹ (Phd student, Department of Accounting, Faculty of Economics and Administrative Sciences, University of Noor Azad, Iran.)
Yahya  Kamyabi ² (Professor, Department of Accounting, Faculty of Economics and Administrative Sciences, University of Mazandaran, Iran. *(Corresponding Author))
Javad  Ramezani ³ (Assistant Professor, Department of Accounting, Faculty of Economics and Administrative Sciences University of Noor Azad, Iran.)

Received: 2021-06-09 Accepted : 2021-07-31 Published : 2024-03-20

Keywords: Green Audit Quality, Sustainable Reporting Readability, Petrochemical industry.,

Abstract :

Background and Objective: The high content of information in reporting has an important effect on the formation of stakeholder decision-making approaches at the level of represented markets. The readability of financial reporting as a content mechanism, while developing a level of effective interaction between the firm and stakeholders, reduces the gap in expectations between the firm and auditors. The purpose of this research is Interpretive Evaluation of Green Audit Quality in Presence of Sustainable Reporting Readability Themes of Capital Market Companies. Material and Methodology: This research is methodologically developmental in the result section and mixed in terms of data type. In this study, in order to identify the components (Green audit quality functions) and research propositions (content themes of Sustainable Reporting Readability), a combined analysis was used with the participation of 15 accounting experts at the university level. In the quantitative part, the components and propositions identified in the form of matrix questionnaires were evaluated by interpretive rating by 20 financial managers of capital market petrochemical companies. Findings: The results showed that, in the presence of a social theme as an effective reference for the readability of financial reporting, the development function is considered the most desirable basis in improving the quality of green auditing. Discussion and Conclusion: In fact, this result shows that, since developmental functions in environmental auditing as an institutional strategy in the hands of the governing body and higher institutions such as the Securities and Exchange Commission; The Court of Audit and other specialized organizations, the existence of disclosure of discretionary information based on social mechanisms in the financial statements helps the auditor to provide more reasoned reports on the development capabilities of the company in the environmental sector and through the effectiveness of the audit Environmental requirements were promising.

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