THE IMPACT OF AUDITOR’S EXPERTISE, COMPANY SIZE AND ENVIRONMENTAL MANAGEMENT SYSTEM (EMS) ON LEVEL OF ENVIRONMENTAL AUDITING: MODERATING THE ROLE OF CORPORATE GOVERNANCE

Abstract

Considering the increasing concern about environmental issues discussed in this paper, environmental auditing has emerged as a prominent issue attracting the attention of both academics and policymakers. Based on this context, this study aims to identify the determinants that influence the extent of environmental auditing, such as auditors’ expertise, company size, and private companies' adoption of Environmental Management Systems (EMS) in Iraq. Furthermore, corporate governance is explored as a probable moderator between auditors’ expertise, company size, EMS, and the level of environmental auditing for Iraqi private organizations. The survey was utilized for data collection by sending out questionnaires to auditors practising in the field of private sector organizations in Iraq. Regarding other items and factors, we have employed the SPSS-AMOS software tool to assess the linkage and connection among those variables. According to our research, it can be claimed that there is an association between the competence of the auditor, enterprise size, environmental management systems, and the level of environmental audit in Iraqi private sector companies. Moreover, according to this research, it may be concluded that the role of corporate governance as a major moderating variable toward auditors’ expertise, the size of the company, the level of EMS, and environmental auditing in the Iraq private sector. To summarize, there are a few suggestions that can be provided for policymakers in terms of regulatory developments aimed at further improving environmental auditing criteria. Among others, one can point out elevating the auditor’s proficiency level, defining the adequate company size, or ensuring an EMS's effectiveness.