Integrating Sustainability into Accounting and Auditing Practices: A Framework for Future Reporting Standards

The growing global emphasis on environmental, social, and governance (ESG) responsibilities has reshaped expectations regarding the role of accounting and auditing in promoting sustainable business practices. Traditional financial reporting frameworks are no longer sufficient for stakeholders seeking comprehensive insights into an organization's long-term value creation and societal impact. As a result, integrating sustainability into accounting and auditing has become an essential priority for regulators, firms, and professionals worldwide. The objective of this study is to examine the influence of three key sustainability integration factors—sustainability accounting practices (SAP), sustainability auditing and assurance (SAA), and ESG disclosure quality (ESGDQ)—on the advancement of future reporting standards (FRS) in Bangladesh. In this study, future reporting standards represent the dependent variable, whereas SAP, SAA, and ESGDQ function as independent variables. A structured questionnaire was developed based on prior literature, and 330 online surveys were distributed to accounting professionals, auditors, and corporate reporting practitioners using non- probability convenience sampling. A total of 176 responses were received, of which 162 valid responses were retained (n = 162). Data were analyzed using SPSS version 26, and correlation and regression analyses were conducted at the 5% significance level. The findings reveal that SAP, SAA, and ESGDQ each have a significant positive impact on the development of future reporting standards. The study concludes by offering practical insights for policymakers, professional bodies, and firms aiming to strengthen sustainability reporting frameworks, and it outlines future research opportunities in sustainability-oriented accounting and auditing fields.