International Journal of Finance & Managerial Accounting

International Journal of Finance & Managerial Accounting

Developing and Validation of an Audit Committee Competency Model and assessing Its Impact on Sustainability Reporting used a Mixed Exploratory Approach

Document Type : Original Article

Authors
Fatemeh Riahi 1
Mansour Garkaz 2
Khadijeh Eslami 3
Alireza Matoufi 2
Ali Khozain 4
1 Ph.D. Student, Department of Accounting, Gorgan Branch, Islamic Azad University, Gorgan, Iran
2 Associate Professor, Department of Accounting, Gorgan Branch, Islamic Azad University, Gorgan, Iran
3 Assistant Professor, Department of Accounting, Bandar gaz Branch, Islamic Azad University, Bandar gaz, Iran
4 Associate Professor. Department of Accounting, Ali Abad Katol Branch, Islamic Azad University, Ali Abad Katol, Iran
10.22034/ijfma.2025.78287.2231
Abstract
One of the key factors in long-term business success is the effective implementation of a well-developed corporate governance framework. One of the most important pillars of this framework is the audit committee. Companies with an effective audit committee are more likely to prepare sustainability reports. To ensure impartiality, the skills and competencies of the audit committee are crucial for the effectiveness of the committee in performing its duties. This study aims to develop and validate the audit committee's competency model and investigate its impact on sustainability reporting using a mixed exploratory approach. First, to identify the competencies of audit committee members, a qualitative method based on grounded theory was applied through semi-structured interviews with 15 auditing professionals, using the snowball sampling method. The competency model of audit committee members was then presented. In the quantitative phase, the model was tested using structural equation modeling based on responses from 92 experts in the field of audit committees. The results of the quantitative study indicate that the competency model significantly influences sustainability reporting. Specifically, the presence of competent audit committees enhances attention to social responsibility and sustainable development issues. Furthermore, the committee takes steps to safeguard the interests of various stakeholders who rely on the company's accounting information. Additionally, the audit committee plays a crucial role in improving the reporting process, ensuring transparency, and providing reliable information and reports.
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