Expectation-performance Gap Research Articles

The negative expectation–performance gap and internationalization speed of EMNEs: the moderating effect of organizational slack

PurposeThe purpose of this study is to investigate the impact of the negative expectation–performance gap on the internationalization speed as well as the moderating role of organizational slack, based on the performance feedback theory and the springboard perspective.Design/methodology/approachThis paper takes the Chinese A-share listed companies engaged in outward foreign direct investment (OFDI) between 2010 and 2022 as the research sample. A two-way fixed effects model is employed to test the research hypotheses, using a dataset comprising 6,868 observations.FindingsThe findings show that there is a positive relationship between the negative expectation–performance gap and internationalization speed for Chinese multinational enterprises (CMNEs). In addition, this effect is stronger in private CMNEs. Furthermore, the relationship is negatively moderated by organizational slack. Additional findings suggest that that negative industry expectation-performance gap has a stronger impact on the internationalization speed. The moderating effect of unabsorbed slack resources is more pronounced.Practical implicationsWhen emerging market multinational enterprises (EMNEs) face the dilemma of underperforming, they may consider a rapid internationalization strategy as a solution to improve performance. However, EMNEs should be wary of falling into a resource trap. Organizational slack reduces managers’ incentives to identify issues associated with negative performance feedback, thereby diminishing the likelihood of addressing performance challenges through rapid internationalization. For state-owned EMNEs, optimizing organizational structure and improving the efficiency of responses to negative performance feedback are essential.Originality/valueUnlike previous studies, this paper integrates performance feedback theory and the springboard perspective to explore in depth the relationship between performance feedback, internationalization speed and organizational slack within the context of managers’ cognitive and decision-making mechanisms. It also examines the distinct impacts of historical and industry negative expectation–performance gaps as well as the different moderating roles of absorbed and unabsorbed organizational slack, which have not been explored together before.

Shariah governance and audit practices in Islamic co-operatives: An audit expectation-performance gap analysis

This study focuses on the inclusion of Shariah governance and audit best practices in Islamic co-operatives in Malaysia. The development of Shariah governance and audit is essential to complement the Shariah compliance mechanisms already in place and practiced internally within these Islamic co-operatives. Strong regulations, frameworks, and guidelines are needed to uphold Shariah compliance practices. The Delphi method was used as the study’s methodology, involving a series of discussions with industry practitioners in Islamic co-operatives. Based on the findings, there is an existing expectation-performance gap in regulations, frameworks, and guidelines; independence and competency; and Shariah audit scope in governing Shariah compliance principles in Islamic co-operatives. This is crucial because well-developed regulations, frameworks, and guidelines in Shariah governance and audit will increase stakeholders’ trust that the activities and operations of Islamic co-operatives are Shariah-compliant. Additionally, providing a standardized framework will help manage risks in Islamic co-operatives and, in the broader context, contribute to the industry’s and the economy’s growth by offering stakeholders adequate information to make informed decisions.

Assessing Alignment of the USJ-R BSA and BSMA 4th Year Students’ IT Skills with the Entry-level IT Skills Deemed Important in the Accounting Industry

This study assessed the alignment between IT skills developed by 4th-year Bachelor of Science in Accountancy (BSA) and Bachelor of Science in Management Accounting (BSMA) students at the University of San Jose-Recoletos and the entry-level IT skills necessary in the accounting industry. The study used quantitative data from 205 respondents, including 102 students and 103 accounting professionals. Convenience and stratified random sampling were employed, and the Mann-Whitney U test was used for data analysis. After gathering the data, it is revealed that the skills deemed necessary in the industry are significantly higher than those developed by the students (U=365.5, p>0.05). Overall, there needs to be more alignment between the IT skills developed by the students and those necessary in the accounting industry, indicating a gap between expectations and performance. This result correlates to the framework "expectation-performance gap," which generally pertains to the gap between what is needed in the industry by the professionals and what is developed by the accounting students. The study recommends expanding the accounting curriculum, particularly in information technology, to bridge the knowledge and skill gap for future accounting graduates.

AUDIT EXPECTATION GAP IN THE PUBLIC SECTOR: A REVIEW OF LITERATURE

The Audit Expectations Gap (AEG) is a well-known phenomenon in the private sector, and it has developed into an emergent issue that has gotten minimal attention from public sector researchers. Consequently, the AEG in the public sector has been the subject of only a small number of studies, all of which have been carried out pertaining to the financial or performance audit contexts. Subsequently, numerous scholars have defined and assessed the AEG in a variety of ways in a variety of studies using a variety of parameters. The main purpose of this paper is to develop a new synthesis of the extensive literature on the AEG concerning the public sector. Moreover, this study examines the literature on AEG definitions and meanings, diverse dimensions employed to measure AEG, various methodologies used, the reasons for AEG, and mechanisms for narrowing the gap. The relevant articles were mainly selected using related keywords namely “audit expectation gap” and “audit expectation-performance gap” blended with “public sector”, “government sector” or “performance audit” from the Google Scholar search engine and three selected databases from 1974 to 2021, as suggested by Quick (2020). The dominance of the quantitative method within the positivistic approach was found in the examination of the AEG in the Public Sector. Moreover, the Mann-Whitney U test was found to be the predominant analytical method in empirical studies that primarily utilized questionnaire surveys for data collection. The "society" side in the samples has been extraordinarily diverse, whereas the "auditor" end has always been dominated by the Auditor Generals. Further, AEG in the public sector is a multifaceted concept. Multiple causes for the AEG and various approaches to minimizing it in the public sector have been presented. As far as the originality of the study is concerned, this is the first time a literature review on AEG was performed in the public sector context. Further, all of the facets of AEG have been addressed, and research gaps and potential issues for future studies in the public sector are highlighted. Eventually, a novel definition was developed, contributing originality to the existing public sector literature on AEG.

Automated Learning Strategy to Reinforce Business Writing Mechanics for Accounting Students

ABSTRACT Given the importance of accountants’ writing skills, the written communication expectation-performance gap, and limited accounting faculty time and expertise, this Business Writing Mechanics (BWM) learning strategy provides students with a spelling, grammar, punctuation, and word choice refresher using minimal faculty effort. BWM is an online, self-graded resource that students complete outside of class and consists of four separate assignment modules covering (1) Effective Written Communication, (2) Basic Grammar, (3) Advanced Grammar, and (4) Business Grammar. For each module, students access a PowerPoint slide deck, watch lecture video(s), and demonstrate mastery of the material via a quiz. Large quiz pools allow students to take a quiz multiple times until mastery is achieved. Students’ feedback indicated the PowerPoint slide decks were a good reference tool, the videos were easy to follow, and students’ knowledge, confidence, and awareness of writing mechanics increased.

Transformation of skills in the accounting field: the expectation–performance gap perceived by accounting students

ABSTRACT Addressing the discussion about accounting students’ readiness for future accounting work, this study aims to explore their perceptions of what kinds of gaps possibly exist between their expectations about the importance of various skills in professional practice and the level of skill development attained during accounting studies. The data for the study were collected using a survey of Finnish accounting students. The findings highlight the expected importance of several professional skills for future accounting work and emphasise the need for further development of technological skills in accounting education. The study’s results also show that students do experience gaps between their expectations and actual performance in various skill areas. The study extends the literature on such gaps by presenting accounting students’ perspectives concerning a comprehensive list of technical and professional skills, including skills related to emerging technologies, and offers suggestions about skill areas probably needing further emphasis in accounting education.

Graduate readiness for a professional career in accounting – an investigation of employers’ perspectives in Fiji

PurposeThe purpose of this paper is to identify and gain recent insights into the extent to which skills expectation gap exists from the perspective of employers in a Pacific Island country, including the competencies perceived essential within the work context of accountants and the support provided by employers to accounting graduates to address the skills expectation gap.Design/methodology/approachUsing the expectation–performance gap framework developed by Bui and Porter (2010), this study collects and analyses data via semi-structured interviews with employers at chartered accounting firms, large- and medium-sized commercial and industrial firms in Fiji.FindingsMajority of the employers indicated that graduates from the Fijian universities are adequately prepared and have acquired the necessary attributes to perform at the workplace. However, employers expect universities to do a little more in terms of developing confidence and improving ability to apply theoretical knowledge to practice. The findings also outline that the institutional-, social- and student-related constraints directly affect the quality of graduates, which are not in control of academics.Research limitations/implicationsIt is noted that graduate capabilities are developed over two different learning environments. This study focused on how universities prepared graduates to perform at the workplace from the perspective of employers. This serves as a basis for future research to investigate effectiveness of trainings provided by employers to graduates to enable them into becoming successful accounting professionals.Originality/valueThis study adds clarifications to the debate on academic–practice gap by providing recent insights into the extent to which graduates demonstrate capabilities to perform in the accounting profession, the prevailing issues with graduate capabilities and the employers’ contribution towards strengthening graduate capabilities.

Whether the audit expectation-performance gap is expanding amid changes in audit landscape? New evidence from an emerging economy

PurposeThe purpose of this study is to provide fresh insights into whether there is an expectation gap between external auditors' and other stakeholders' perceptions of external auditors' responsibilities in an emerging economy, in light of recent changes to the global audit landscape.Design/methodology/approachA quantitative approach in the positivistic paradigm was adopted, and a structured questionnaire was used to gather data.FindingsThe findings suggested that there was a statistically significant discrepancy between external auditors' and social groups' perceptions of the responsibilities of external auditors. More than half of the gap was due to deficiency in standards, 19% due to unreasonable expectations by society, while 25% of the gap was found to be due to deficient performance.Research limitations/implicationsThe study focused on the duties of external auditors and not on the duties of other types of auditors while examining the audit expectation-performance gap (AEG), and this was due to the drastic differences in the scope of their duties.Practical implicationsThe findings of this study are likely to have direct policy implications for regulators, authorities, educators and auditing professionals, who should take immediate actions and measures to reduce the AEG in light of the current global audit landscape advancements and changes.Originality/valueThe present study used a substantially updated model to measure the AEG to suit the contemporary changes in the auditing landscape, and could be considered as a pioneering study that measures the AEG in an emerging economy amid recent changes.

Government environmental protection subsidies, environmental tax collection, and green innovation: evidence from listed enterprises in China.

The government has issued a series of environmental laws and regulations to solve ecological problems, regulate environmental pollution, and drive enterprises to carry out green innovations. This paper constructs a theoretical framework of environmental protection subsidies, environmental tax collection, and enterprise green innovation by taking the China A-share manufacturing listed enterprises as a research sample. Further, we explore the contingency impact of the market-expected performance gap and market competition on the enterprise green innovation. The empirical results show that there is a linear positive driving relationship between environmental protection subsidies and enterprise green innovation. The relationship between environmental tax collection and enterprise green innovation is a U-shaped relationship that first inhibits and then promotes. The market expectation performance gap moderates between environmental subsidy and enterprise green innovation. Market competition plays a reinforcing role in environmental subsidy, environmental tax collection, and enterprise green innovation. These research findings are conducive to providing theoretical support and reference for the government to encourage enterprises to actively carry out green innovation in practice, thereby helping to promote green development in the country.

An expectation-performance gap between money laundering reporting officers and their directors – evidence from Germany

PurposeMoney Laundering Reporting Officers (MLROs) carry out day-to-day anti-money laundering (AML) tasks while directors ultimately remain responsible for AML compliance. Therefore, directors’ expectations of what their MLROs do should ideally coincide with what their actual tasks to minimise liability risk. This paper aims to test for gaps between MLROs and their directors in terms of knowledge, expectations and performance of AML tasks. Likewise, it is researched whether MLROs and directors communicate well with regard to MLROs’ tasks.Design/methodology/approachThis paper first develops a model for analysing the dyadic relationship between MLROs and their directors, based on the audit expectation-performance gap. Second, a paired electronic survey of MLROs and directors of German companies was conducted in autumn 2020, testing for participants’ knowledge, expectations and performance of possible AML tasks (n = 136 pairs).FindingsWhile there is no knowledge or performance gap among MLROs and directors, expectations among them are partially unreasonable and their communication needs to be improved. Additionally, this study suggests that MLROs of German non-financial businesses are less knowledgeable, perform AML duties more poorly, and communicate less effectively with their directors.Practical implicationsTraining of MLROs and communication with their directors need to be improved. Especially in the non-financial sector, action is urgently required.Originality/valueThis paper reports the results of the first paired survey of MLROs and their directors, offering unique insights into their relationship and the status of private AML efforts.

Addressing the expectation–performance gap of soft skills in management education: An integrated skill-development approach for accounting students

Numerous studies in management education have focused on the need for soft skill development of students and the associated gaps in management education programmes. However, how universities undertake various strategies in an integrated approach to develop the soft skills of accounting students at the undergraduate level largely remains unexplored. Thus, this study aimed to explore how universities attempt to bridge the expectation–performance gap related to soft skills by focusing on an undergraduate accounting degree programme in Sri Lanka. By developing an analytical framework based on the existing expectation–performance gap and the model of constructive alignment, this study analysed data collected from multiple sources in the first academic accounting degree programme in Sri Lanka. It shows how the accounting degree programme has gradually taken measures covering a range of teaching and learning activities and assessment methods, leading to an integrated programme for the soft skill development of accounting undergraduates. This approach that focuses on both the soft and technical skills of accounting students has evolved from a gradual advancement of the efforts taken to address the various stakeholder demands as well as contextual, socio-economic, and institutional factors. The study also presents implications for accounting educators and policymakers.

Did the International Financial Reporting Standards Increase the Audit Expectation Gap? An Exploratory Study

I examine the role of IFRS on the Audit Expectation Gap (AEG). Past research, mostly based on Porter [(1993). An empirical study of the audit expectation-performance gap. Accounting and Business Research, 24(93), 49–68. https://doi.org/10.1080/00014788.1993.9729463]’s work, does not identify the contribution of accounting standards to the AEG. Yet, IFRS may play a crucial role in an auditor’s mission, because accounting standards now result in more complex and more subjective rules and financial statements. I examine whether IFRS are a factor explaining the perception of the AEG and its components by auditors and preparers of financial information. And, if so, what does this impact, more specifically, result from? Using survey data of 158 auditors and preparers of financial information working in an IFRS environment, I find that the contribution of IFRS to the AEG is underestimated while it is, in fact, at least as important as auditing standards. In addition, respondents think that IFRS generated more complexity (especially regarding issues raised by IFRS 9, IAS 36/IFRS 3 or IFRS 2) and more subjectivity, which contributed to the AEG, and led users of financial statements to be more demanding towards auditors. Auditors are perceived as supposed to be able to offset difficulties suffered by investors regarding the complexity and subjectivity of IFRS. However, the capacity of auditors themselves to fully understand the complexities resulting from IFRS may be overestimated. Furthermore, the results show that auditors’ skills and training seem to be insufficient regarding the increasing complexity of IFRS. Lastly, I find that less experienced respondents underestimate the contribution of accounting standards to the AEG.

Accounting graduate readiness for work: a case study of South East Asia

PurposeThis paper compares and contrasts graduate accountant skills and employers' expectations in South East Asia (SEA).Design/methodology/approachWe analyse the employers' expectation performance gap (EPG) in three countries – Indonesia, Malaysia and Vietnam – to provide a reflection on current professional accounting development in SEA. The study relies on data derived from multiple sources including job advertisements, CIMA “ready for business” project, Glassdoor website and other secondary data sources.FindingsThe findings indicate that over recent decades, the changing nature of the economy, state, and interest of the business sector (including the “Big Four”) have led to the wider adoption of professional accountancy qualifications. The findings suggest that graduates should be equipped with active learning activities such as project-based and work-integrated training to fill the expectation gaps between local university educators and employers.Research limitations/implicationsDrawing upon a literature review of professional accounting education, we use the results of the documentations and secondary analysis to describe the performance expectation gap of accounting education in SEA.Originality/valueThe study indicates a large discrepancy between the teachings in accounting education and employer requirements in Vietnam, Malaysia and Indonesia and propose different methods to fill this employability gap in South East Asia.

Expectation-Performance Gap in Knowledge and Competencies in Accounting Graduates: Evidence from Tunisia

The aim of this paper is to investigate the gap between the competencies which employers expect and those acquired by accounting graduates. We adopted the framework of (Bui &Porter, 2010) to examine the causal factors that contributed to this gap. A questionnaire survey was distributed to accounting professionals and educators. Furthermore, we analyzed data collected by non-parametric tests: the Wilcoxon signed-rank test and the Mann-Whitney test. Findings indicate the constraints within universities as contributing to the failure of accounting education to provide accounting graduates with the competencies expected by accounting professionals. This study contributes to the literature as one of few studies that examine expectation-performance gap in Tunisia.

Investors' Perception and Audit Expectation-Performance Gap (AEG) in the Context of Listed Firms in Sri Lanka

Corporate failures around the globe in recent times have placed the auditing profession in the spotlight. The profession is beset by confusion and crises caused by the differences in the beliefs held by auditors and the public concerning the auditor’s duties, which have even led to lawsuits against auditors. This situation is the result of what is known as the ‘Audit Expectation–Performance Gap’ (AEG). In the light of the contemporary importance of the subject, lack of theoretical underpinnings of the causes of AEG and the dearth of studies on it in Sri Lanka, the present study attempts to ascertain the status of AEG and to examine the factors contributing to AEG, in the Sri Lankan context. A positivist approach was adopted and a structured questionnaire survey done involving professional auditors and investors of listed firms. The results of independent sample t-test indicated a statistically significant difference between the perceptions of professional auditors and investors regarding the duties of auditors in the context of listed firms in Sri Lanka. The relative contribution to the overall AEG was that much of the gap (50 per cent) in AEG was attributable to deficient standards, 16 per cent to unreasonable expectations of society about auditors’ duties, and 34 per cent was due to the perceived sub-standard performance of auditors. On the other hand, in terms of the contributory factors, the mean ranking with one sample t-test results found that 12 factors contributed significantly to AEG. The main contributory factors highlighted by respondents were the lack of auditing education and lack of auditing experience among users. Thus, as regards policy implications, it was noted that policymakers and regulators need to increase community awareness through audit education to reduce AEG in Sri Lanka as one of the main measures.

Performance of newly employed trainee accountants in Gauteng, South Africa, versus the skills expectations of employers: How big is the gap?

The objective of this article is to determine whether the professional skills demonstrated by newly employed first-year trainee accountants (i.e. their performance) meet the expectations of audit managers and, if they do not, to determine the size of the expectation–performance gap. A questionnaire was used to determine the expectations and the perceptions of the actual capabilities of trainee accountants among South African audit managers at large audit firms in Gauteng. The findings revealed that newly employed first-year trainee accountants did not meet audit managers’ expectations, with their expectations always exceeding their perceptions of performance. The professional skill with the largest expectation–performance gap was the ability to take responsibility for one’s own development (37.9%) and that with the smallest gap was the ability to display honesty and integrity (9.4%).

English

The study examines the audit expectation-performance gap from the standpoint of the internal audit function from the perspective of a developing economy. It evaluates the audit expectation-performance gap from the perspective of internal audit with the view to providing useful insights, interesting dimensions and innovative perspectives to the Audit Expectation Gap (AEG) debate. A questionnaire survey method was used to elicit and analyze the views of four main stakeholders in the financial reporting supply chain. These were; (1) external auditors, (2) Senior Management, (3) Audit Committee Members and (4) Professional Bodies. The independent sample t-test technique was used. This technique compares the means of two independent groups, (the users of internal auditors reports group and the internal auditors group) so as to determine whether or not there was statistical evidence that their associated population means were significantly different, relative to questions of responsibility of internal auditors; proactiveness of internal auditors; and professionalism and quality of internal audit work. The results show that the views of stakeholders (that is, users of financial information) on the expectation-performance of internal auditors do not differ significantly from those of internal auditors on the issues of responsibility of internal auditors, proactiveness of internal auditors, the level of professionalism of internal auditors and the quality of internal audit work. As demostrated in the fidndings and discussions section of this paper, the paper evinces that the application of the agency theory to issues concerning internal auditing is practicable and supported in the context of the economic environment of developing countries. The paper provides some empirical evidence based on the survey on stakeholder perceptions on the expectation-performance of internal auditors from an AEG perspective. The study thus rekindles and adds to the myriad of discourses on the longstanding AEG phenomenon as it relates to the internal audit function from the viewpoint of different stakeholders.   Key words: Audit, expectation-performance gap, internal audit, agency, corporate governance, Ghana. &nbsp

Exploring the audit capabilities expectation-performance gap of newly employed first-year trainee accountants in Gauteng: Audit managers at large firms’ perceptions

The objective of this paper is to determine the relative size of the expectation-performance gap of technical auditing and assurance knowledge of newly employed first-year trainee accountants. In a study dealing with the expectation-performance gap in accounting education it was reported that according to practitioners, graduates were not able to demonstrate the expected practical accounting knowledge. This gives rise to the question: is the gap really as big as practitioners would like academic institutions to believe? As the relative extent of the gap will be determined in this study, the findings could assist audit and assurance academics in understanding accounting practitioners’ expectations of and concerns about newly employed first-year trainee accountants, which as a result could be addressed in their education practices. In addition, training at training offices at audit firms could be customised to focus on the areas in which the newly employed first-year trainee accountants are lacking.A questionnaire was used to determine audit managers’ perceptions regarding their expectations and their perceptions regarding the actual levels of capability demonstrated by newly employed first-year trainee accountants when performing technical audit and assurance tasks, after which the relative size of the expectation-performance gap was determined. The findings indicate that audit managers do not expect newly employed first-year trainee accountants to be capable of performing any of the identified technical audit and assurance tasks without, or with only limited supervision. However, despite this rather low expectation, it was evident that newly employed first-year trainee accountants do not meet audit managers’ expectations. The technical audit and assurance task with the largest expectation-performance gap was the ability of newly employed first-year trainee accountants to consider and document the need to use computer-assisted audit techniques to gather audit evidence, with an expectation-performance gap of 28.9%.

The Study of Audit Expectation Gap: The Auditor’s Responsibilities in a Financial Statement Audit in Vietnam

This research ascertains the structure, composition, and extent of the Audit Expectation Gap (AEG) in Vietnam, thereby demonstrating the existence of the AEG in Vietnam. This study indicates reasonable solutions in narrowing the AEG in auditing financial report in Vietnam. The research design used the research framework of Porter (1993); Porter and Gowthrope (2004); Porter et al. (2012) and Turner et al. (2010). Survey data was collected by sending a random survey questionnaire to four interest groups: (i) auditors (the sample of auditors was a random selection from the list membership of the Vietnam Association of Certified Public Accountants (VACPA), (ii) auditees (joint-stock companies listed on the securities market), (iii) audit beneficiaries - in the financial community (direct beneficiaries of the audit function as users of audited financial statements), and (iv) audit beneficiaries - general public (they are randomly selected in Ho Chi Minh City, Hanoi (Capital of Vietnam) and neighboring provinces where many businesses, investors, and universities are located). The total number of questionnaires sent out was 1400. The number of usable responses was 454 or 32%. The study results provided empirical evidence that the existing AEG in Vietnam was significantly in line with the definition of audit expectation-performance gap (AEG) of Porter (1993) and that there was no research component proposed by Turner et al. (2010). The structure and extent of the AEG in Vietnam: reasonableness gap 31%, deficient standards gap 49%, and deficient performance gap 20%. In this study, the response rates of the survey groups were low. Practical implications included: identifying responsibilities which constitute each component of the AEG in Vietnam and determining the specific causes relevant to each responsibility and solutions to adjust, supplement or amend promptly. This would narrow the AEG in Vietnam. The AEG’s component’s measurements provide the indicator for the relevant agencies to build, implement policies to improve the capacity of independent auditing profession in Vietnam.

GRI G4 content index

PurposePrevious studies have argued that the incapacity of the majority of SR stakeholders to identify the different types of assurance processes contributes to the existence of an expectation–performance gap and affects the credibility of such reports. To improve this situation, the Content Index Model was updated by the Global Reporting Initiative (GRI) in its latest sustainability reporting guideline – “G4”. This paper aims to assess, using a qualitative exploratory approach, whether this updated Content Index Model changes the expectation–performance gap of stakeholders on assurance processes for GRI sustainability reports. This paper also assesses whether this Content Index Model improves the credibility of the assurance processes for GRI sustainability reports, considering participants’ points of view.Design/methodology/approachThis paper used a qualitative approach to obtain participants’ perceptions in relation to the objectives of the paper. Two questions were used to assess whether the updated Content Index Model improves stakeholders’ understanding in regards to the assurance process of GRI sustainability reports, thus changing the expectation–performance gap and improving the credibility of GRI sustainability reports. The following questions were asked: Does the Content Index Model help SR stakeholders to better understand the scope of the assurance processes? and Why? Does the Content Index Model presented help to improve credibility of assured SR? and Why?FindingsResults obtained demonstrate that the updated Content Index Model improves SR stakeholders’ understanding regarding the scope of the assurance processes conducted, thus reducing their expectation–performance gap on assurance processes and improving the credibility of SR. Participants also commented on the relationship among transparency, understand ability, trust and credibility.Research limitations/implicationsFirst, participants were responsible for identifying the group that best represents his/her professional experience. The fact that participants have professional experience in more than one of the groups identified in this research (assurers, reporters and readers) could have impacted on their perceptions regarding the assurance process. Second, the interviews do not rely on practical experience with the updated Content Index Model, rather, they rely on participants’ perceptions regarding the hypothetical use of this Content Index Model. Third, descriptive statistical analyses in this paper aim to illustrate participants’ perceptions rather than to develop robust statistically significant conclusions. Fourth, the main author of this paper developed the Content Index Model, and this may have impacted the responses of the participants and/or the analysis of data. Also, the specific geographic area where interviews were conducted, the selection technique used and the non-statistical significance of the analyses presented in this paper must be carefully interpreted and cannot be generalised to a broader context based on this paper alone. Finally, interviews were developed and conducted before May 2013, before the GRI officially launched the GRI G4 Sustainability Reporting Guidelines.Practical implicationsAs the GRI is the most commonly used sustainability report framework to date, this study has the possibility to affect all companies that publish their sustainability reports based on the GRI framework and all assurance providers currently providing assurance services for such report. Also, findings would be very useful for sustainability reports’ readers worldwide.Originality/valueAs sustainability reports are the most common instruments used by organisations to provide accountability about the environmental and social performance, and assurance is the most common instrument used by organisations to improve credibility of such reports; it is important to assess whether those instruments are achieving their goals and understand the role played by the GRI G4 Content Index Model in this context. As the GRI G4 was recently launched, there is no study published yet assessing the effectiveness of its new content index model.