Assurance of sustainability environmental contingencies - experience from France

Abstract

The study investigates the mode by which auditors assure the environmental contingencies disclosed in the financial statements. Taking interpretivist perspective through discourse analysis, we argue for understanding of measures taken by assuror to mitigate the environmental contingencies risks. Data corpus consists of interview of seven practicing external auditors. Our findings show that auditors' understanding of the business plays major role; and has to lead with certain amount of diligences in view of ascertaining true and fair view of the financial statements. By doing so, third parties confirmation is quintessential in connection to the rights and obligations enhanced by experts, lawyers and business partners. Based on our study, we conclude that assurance of environmental contingency ought to be treated on case-by-case basis in order to abridge the expectation gap and be effective. Finally, assuring sustainability of environmental contingencies lies within the company's' control activities, the environmental compliance roles and the auditors' understanding of the business.