The Impact of Green Management Accounting on Audit Quality: Evidence from Industrial Corporations in Sultanate of Oman

Abstract

This study aims to investigates the impact of Green Management Accounting Tools (GMA) on Audit Quality of industrial Omani corporation listed in Muscat Stock Exchange. Life Cycle Cost Accounting, Green Target Costing, Environmental Performance Accounting, and Environmental Reporting and Disclosure were used as a proxy for green management accounting. The study employs a panel data set of thirty non-financial listed Omani corporations from 2018 to 2023. The study revealed that a strong and statistically significant positive relationship between green management accounting tools and audit quality, and each tool contributes to varying degrees to improving audit quality, reflecting the growing role of the environmental dimension in supporting the credibility of financial information and enhancing the confidence of financial statement users.
The study recommended integrating green management accounting into accounting and auditing policies and developing training programs for accountants and auditors on implementing green accounting in the local business environment. and enhancing regulatory body’s role in monitoring companies' compliance with environmental standards and sustainable reporting.
The study contributes to establishing scientific bases for improving the financial and environmental performance of companies, thereby achieving a balance between economic efficiency and environmental responsibility, in accordance with Oman Vision 2040.