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Research Article |

Transparency, Trust and Sustainability in Financial Information

This study contributes to the literature on sustainability reporting by examining the knowledge and experience of auditors in Iceland regarding sustainability accounting. Amid evolving corporate governance and auditing practices, the concepts of transparency and trust have become integral. While audit committees have traditionally been instrumental in enhancing transparency within financial information, the emergence of sustainability reporting necessitates their adaptation to include sustainability-related aspects. The study's findings indicate a significant gap in the knowledge and experience of Icelandic auditors concerning sustainability frameworks. Approximately 80% of participants acknowledge limited familiarity with sustainability reporting. This reality raises concerns, especially in light of impending regulatory requirements such as Directive (EU) 2022/2464, amending Regulation (EU) No 537/2014. Audit committees are poised to play a pivotal role in the transformative process, ensuring the harmonious integration of financial and sustainability information while upholding trust and transparency. However, delineating the exact responsibilities of audit committees in this evolving landscape remains crucial to prevent transparency from being diluted. To address the identified gaps, future research could employ qualitative interviews to delve deeper into auditors' perspectives and practices, particularly within audit teams. Furthermore, exploration of audit firms' roles in acquiring expertise in sustainability reporting practices could shed light on potential solutions. In conclusion, this study underscores the pressing need to enhance knowledge and expertise in sustainability reporting among Icelandic auditors. As the landscape of corporate reporting shifts, collaborative efforts among stakeholders become paramount in establishing enduring trust and transparency. Further research within this realm holds the key to advancing sustainability accounting practices and understanding.

Sustainability Reporting, Audit Committees, Trust, Transparency, Corporate Governance

APA Style

Einar, G., Ivar, J. E., Snorri, S. J. (2023). Transparency, Trust and Sustainability in Financial Information. Journal of Finance and Accounting, 11(6), 189-195.

ACS Style

Einar, G.; Ivar, J. E.; Snorri, S. J. Transparency, Trust and Sustainability in Financial Information. J. Finance Account. 2023, 11(6), 189-195. doi: 10.11648/j.jfa.20231106.12

AMA Style

Einar G, Ivar JE, Snorri SJ. Transparency, Trust and Sustainability in Financial Information. J Finance Account. 2023;11(6):189-195. doi: 10.11648/j.jfa.20231106.12

Copyright © 2023 Authors retain the copyright of this article.
This article is an open access article distributed under the Creative Commons Attribution License ( which permits unrestricted use, distribution, and reproduction in any medium, provided the original work is properly cited.

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