Objective: “With the increasing expansion of international business activities and the increasing importance of sustainability in organizational, academic, and professional fields, sustainability reporting has become one of the key objectives of economic enterprises and countries. This type of reporting includes the disclosure of information related to the financial, environmental, social, and corporate governance performance of companies, which is presented within the framework of international standards, with the aim of increasing transparency and accountability.”
Method: Accordingly, this study, with a descriptive-analytical approach, examines the benefits and challenges of sustainability auditing in Iran.
Results: From the perspective of economic and accounting theories, the disclosure of sustainability information has several functions, including reducing information asymmetry, improving the quality of financial reporting, enhancing the reputation and credibility of the company, strengthening organizational legitimacy, creating a competitive advantage, increasing employee motivation, and optimizing against competitors. In addition, sustainability reporting can bring positive consequences such as increasing public trust, improving the quality of life, preserving environmental resources for future generations, developing the capital market, and improving the quality of investor decision-making.
Conclusions: In this context, sustainability auditing, as a key tool for increasing the reliability of sustainability reports and improving the quality of disclosure, plays an important role in reducing information risks and increasing investor confidence.