Disclosing the core topics of sustainability reports in the oil and gas sector in accordance with the Global Reporting Initiative (GRI-11) standards and their reflection on audit procedures (Applied Research)

Abstract

Abstract:

Given the increasing importance of sustainability reporting, auditors must adapt their procedures to verify the accuracy and reliability of sustainability information. Therefore, understanding the implications of potentially material topics disclosed in the GRI-11 standards for the oil and gas sector on audit procedures is critical for both auditors and companies to ensure the credibility of these reports. Therefore, the research aimed to measure the level of disclosure of indicators of core topics related to sustainability in the oil and gas sector in accordance with the standards of the Global Reporting Initiative (GRI-11) and its reflection in audit procedures. To achieve this, the research relied on the method of content analysis of financial reports and the Board of Directors’ report when measuring and testing the level of disclosure of indicators of the core topics of sustainability reports in the oil and gas sector, deriving the audit procedures proposed from the Global Reporting Initiative (GRI-11) standards, and choosing the Basra Oil Company to apply the practical aspect. And prove the research hypotheses. One of the most important findings of the research is the low percentage of the overall evaluation of the level of commitment of the Basra Oil Company (research sample) to disclose indicators of the core topics of sustainability reports in the oil and gas sector by (7%), in addition to the discrepancy in the level of disclosure between indicators of the core topics of sustainability reports. The research also reached many recommendations, the most important of which is the need to oblige oil and gas sector companies operating in Iraq to apply the indicators and standards of the Global Reporting Initiative (GRI-11) to prepare sustainability reports and adopt the proposed audit procedures