Does Audit Committee Effect on Relation Between Effectiveness and Efficiency of Auditing and Sustainable Development in Private Sector Companies?

The current economic environment has focused on sustainable development as development that responds to the needs of the present without compromising the ability of future generations to meet their needs. This study attempted to study the impact of the most important factors that promote sustainable development in the environment of Iraqi private sector companies. The conceptual framework in this study was developed using governance theory as well as explaining the relationship between the study variables. The scientific foundations applied in this research aim to provide insight into what the concept of sustainable development means to a number of other beneficiaries who bear the responsibility of evaluating the importance of sustainable development in the Iraqi private sector. The target population in the current study relates to the external auditor in the Iraqi private sector. In this study, four hypotheses were proposed for the purpose of testing the relationship between the research variables. The study population was 362 external auditors, and the study sample was 186, with a response rate of 72%. The questionnaire was distributed personally to the targeted sample for the purpose of helping the selected sample in interpreting some ambiguous questions. The study used Smart PLS4 technology to test the data obtained from the research sample. The study model indicated high explanatory power. It appeared that three paths from the research model were significant in the direction suggested by the study in its hypotheses. This study succeeded in showing the most important factors that can help promote sustainable development in Iraqi companies operating in the private sector. The results of the study indicated that the analysis of path coefficients indicated that audit committees, the efficiency and effectiveness of auditing, and the culture of the organization positively affect sustainable development. The research indicated that the main factors that can promote sustainable development in the private sector in Iraq are the need to strengthen the work of audit committees and conduct audits with a high level of efficiency and effectiveness. In this context, this study suggests that decision makers should take seriously the factors mentioned to achieve important results from the audit process.