Enhancing Audit Quality Through Integrated Reporting: Evidence from Emerging Markets

Abstract

This study investigates the relationship between integrated reporting quality (IRQ) and audit quality in emerging markets, drawing on a mixed-methods approach that combines econometric modeling and qualitative analysis. Using nine datasets of firm-level observations and twelve visualizations, the results demonstrate that higher IRQ is strongly associated with reduced earnings management, shorter audit report lags, and greater audit credibility. The findings further reveal that governance structures and auditor type significantly moderate these effects, with Big-4 auditors and active audit committees enhancing the positive impact of integrated reporting. Industry-level variations suggest that regulated sectors exhibit stronger alignment between IRQ and audit outcomes, while the assurance of integrated reports amplifies these benefits by improving the reliability of non-financial disclosures and facilitating auditor judgment. The study highlights that integrated reporting not only improves the transparency and usefulness of corporate reporting but also strengthens the audit process by expanding the evidence base and reducing informational risk. The results provide important implications for regulators, policymakers, and practitioners in emerging economies, emphasizing the need to promote integrated reporting adoption and assurance to enhance audit effectiveness and stakeholder confidence. Ultimately, this research contributes to the growing literature by showing that integrated reporting serves as a governance and accountability mechanism that significantly enhances audit quality in environments characterized by institutional challenges and evolving regulatory frameworks.