The Impact of Forward-Looking Disclosure and Audit Quality on Accounting Conservatism: A Study in Banks Listed on the Iraq Stock Exchange
Department of Accounting College of Administration and Economics Tikrit University – Iraq
Associate professor at the Department of Accounting, Institute of High Commercial Studies of Carthage, University of Carthage, Tunisia LIGUE laboratory, LR99ES24, ISCAE, University of Manouba, Tunisia
Abstract
Audit quality and accounting conservatism are critical factors essential for the effective functioning of organizations and have thus attracted considerable attention from researchers. This study investigates the influence of forward-looking disclosure and audit quality on accounting conservatism among listed banks in Iraq. Additionally, it examines the moderating role of corporate social responsibility (CSR) in the relationships between forward-looking disclosure, audit quality, and accounting conservatism within these institutions. Data were collected via surveys administered to employees of selected banks. The study employed Smart-PLS to assess data reliability and to analyse relationships among variables. Findings reveal a positive association between forward-looking disclosure, audit quality, and accounting conservatism within the context of Iraqi banks. Furthermore, CSR was found to significantly moderate the relationships between forward-looking disclosure, audit quality, and accounting conservatism. These results provide guidance for policymakers aiming to enhance accounting conservatism through improvements in forward-looking disclosure and audit quality.