Corporate Sustainability Reporting and Assurance

• In Event: Continental Breakfast and Research & Education Forum
  In Paper Session: Table 14: CSR Assurance

Abstract

As the number of public companies worldwide issuing sustainability reports on various dimensions of their economic, governance, social, ethical, and environmental (EGSEE) performance is growing, these reports should be audited and/or reviewed by assurance service providers. Reliability, objectivity, and credibility of the issued sustainability reports can be substantially improved by providing assurance on these reports. In this paper, we examine the relevance and feasibility of external auditors’ engagement in providing sustainability assurance by: (1) discussing sustainability reporting and assurance on all five EGSEE dimensions of sustainability performance; and (2) presenting a model derived from new initiatives and guidelines for auditors in providing sustainability assurance services to their clients. Unlike audit reports on financial statements, assurance reports on sustainability information are neither standardized nor regulated or licensed. A number of professionals including internal auditors, external auditors, and other service providers can offer assurance on sustainability reports. Accounting firms have developed expertise in sustainability reporting and assurance and they are well-equipped and trained to provide sustainability assurance services to their clients. This paper develops an integrated assurance framework of all existing sustainability assurance guidelines relevant to all five EGSEE dimensions of sustainability performance.

Authors

• Zabihollah Rezaee, University of Memphis

• Said Homayoun, University of Gävle