THE ROLE OF EXTERNAL AUDIT IN ENHANCING THE CREDIBILITY OF SUSTAINABILITY REPORTS (ESG)-FIELD STUDY OF A SAMPLE OF IRAQI BANKS

Abstract

This research examines the role of external audit in enhancing the credibility of sustainability reports in Iraqi banks, in light of the increasing global trend towards non-financial disclosure in accordance with environmental, community and governance standards (ESG). The problem of the study is that there are professional and organizational challenges facing the external auditor when auditing sustainability information, which may affect the level of reliability of these reports and the quality of disclosure, especially in emerging banking environments .the research aims to demonstrate the impact of external audit in enhancing the credibility of sustainability reports, analyzing the role of the auditor's experience and commitment to professional standards in improving the level of disclosure, as well as diagnosing the most prominent challenges facing the audit process in this area. To achieve this, the research adopted the descriptive analytical approach in the theoretical aspect, and the field approach in the applied aspect, where the data was collected using a questionnaire addressed to a sample of auditors and employees of Iraqi banks, amounting to (110) valid questionnaires for statistical analysis, and the data was analyzed using the SPSS program based on descriptive and evidentiary statistical methods, and the results showed a statistically significant impact of external audit in enhancing the reliability and credibility of sustainability reports, and it also turned out that the auditor's experience and commitment to professional standards contribute to while the challenges associated with the nature of non-financial information are one of the most significant Obstacles to the audit process . The research concluded that it is necessary to strengthen the role of external audit, adopt international disclosure standards, and develop the skills of auditors in the field of auditing non-financial information, which contributes to raising the level of transparency and confidence in the reports issued by Iraqi banks .