Audit of non-financial reporting

Abstract

The paper analyzes scientific sources and highlights the meaning of the concept of "non-financial reporting" and gives the features of non-financial reporting. The influence of non-financial risks on increasing financial value is also substantiated. Introduction. Capital market participants are increasingly prioritizing the importance of non-financial information. Sustainability and non-financial reporting have become a central concern among business leaders, investors, consumers and regulators, who are seeking greater standardization to encourage accountability and the inclusion of non-financial factors in ratings, rules and reports. The increased global focus on climate change, diversity and inclusion and the crisis caused by Covid-19 have only accelerated this momentum. The purpose of the study is to study the essence of the concept of non-financial reporting and the specifics of auditing in this area. Results. Non-financial reporting is a phenomenon that appeared in the world in response to the challenges of the time, in particular, a response to the emergence and development of the concept of corporate social responsibility, which is a concept in accordance with which the organization takes responsibility for its activities, which affects almost all spheres of social life, including companies and other interested parties, the so-called stakeholders. Public non-financial information is an answer to the question that arises from stakeholders about the activities of companies not only from the side of the financial component. Conclusion. The growing interest in non-financial reporting is due to additional requests from interested parties in the conditions of a rapidly changing economy. Improving the regulatory framework in the field of non-financial reporting and its audit, methodical development and dissemination of best practices will increase the pace of its development in Ukraine, and increase the informative and analytical value of reports of Ukrainian companies.