Abstract
The assurance of sustainability reports faces significant challenges that arise from the characteristics of sustainability information and the regulatory context in which it is developed. This recently growing service has favoured the creation of a rapidly evolving market, a complex professional field in its early stages of development and study. The aim of this paper is to analyse whether the use of international standards or the profile of the provider performing the service affects assurance process and quality. To this end, we applied a novel methodology for this field: a survey through written questionnaires. The use of a primary information source allows us to gain insight into the topic, beyond other visible aspects often used in previous literature (e.g., assurance statement contents). We tested our hypotheses on a sample of Spanish accounting and consulting firms. Our results show that neither the use of international standards nor the provider’s professional background has any effect on assurance process and assurance quality. However, the way the professional perceives the developed service does have an impact on quality.
Highlights
In recent years, the assurance of sustainability reports (SR) has evolved (O’Dwyer et al 2011; KPMG 2015) into an instrument that enhances credibility of corporate social responsibility (CSR)information (CorporateRegister.com 2012; Pflugrath et al 2011; GRI 2013; Sierra et al 2014; Darus et al 2014; Herda et al 2014)
The number of this latter group in the sample is high as compared to the number of Big 4 because the auditing service variable depends on the area where providers frame the assurance service, regardless of their professional background
This paper aims to attain a better understanding of the assurance market from the service-provider perspective
Summary
The assurance of sustainability reports (SR) has evolved (O’Dwyer et al 2011; KPMG 2015) into an instrument that enhances credibility of corporate social responsibility (CSR)information (CorporateRegister.com 2012; Pflugrath et al 2011; GRI 2013; Sierra et al 2014; Darus et al 2014; Herda et al 2014). Professionals from different areas see this situation as an opportunity to expand their business by offering services to this new market (Jones and Jonas 2011). The novelty of this market and its specific characteristics result in a limited understanding of the nature and scope of the supply and the demand side of the assurance service (Hasan et al 2005; Perego 2009; Ackers and van Heerden 2015; Zorio-Grima et al 2015). Previous literature states that the absence of regulation and the consequent diversity of standards and providers entail inconsistent assurance practices that hinder users’ understanding and reduce quality and credibility of the assurance service (Fonseca 2010; Ackers and Eccles 2015). The emergence of an assurance market represents a research opportunity to better understand the development of this service and its related standards as well as a way to improve its public benefit (Simnett et al 2016)
Sign-in/Register to view highlights & summary Talk to us
Join us for a 30 min session where you can share your feedback and ask us any queries you have
Schedule a callDisclaimer: All third-party content on this website/platform is and will remain the property of their respective owners and is provided on "as is" basis without any warranties, express or implied. Use of third-party content does not indicate any affiliation, sponsorship with or endorsement by them. Any references to third-party content is to identify the corresponding services and shall be considered fair use under The CopyrightLaw.
