scholarly journals Integrated Reporting Assurance: Perceptions of Auditors and Users in Spain

2019 ◽  
Vol 11 (3) ◽  
pp. 713 ◽  
Author(s):  
Estibaliz Goicoechea ◽  
Fernando Gómez-Bezares ◽  
José Ugarte
Keyword(s):  
Financial Information ◽  
Audit Report ◽  
Integrated Reporting ◽  
Reporting Framework ◽  
International Integrated Reporting Council ◽  
Audit Activity ◽  
A Company

Integrated reporting is a key instrument used to inform stakeholders about the sustainability issues of a company. Only an assured report can effectively instill confidence in its users regarding the sustainability of the company. Based on the International Integrated Reporting Framework issued by the International Integrated Reporting Council (IIRC), the authors solicited perceptions from auditors and audit report users about several aspects of integrated reporting assurance. An analysis of the responses suggests that integrated reporting assurance is important, but there are many challenges (both methodological and related to the characteristics of non-financial information) for auditors to overcome. Reporting companies and auditors must work to overcome these problems. The former ones must improve the quality of non-financial information and the later must adapt their audit procedures. This paper provides valuable insights into preferences regarding the form and content of the audit report on integrated reporting. This study is useful to regulators of audit activity, auditors’ corporations, the IIRC, and other international associations, academics, and audit report users, and contributes to the current integrated reporting literature by examining the perceptions of auditors and users regarding the assurance of integrated reporting. Integrated reporting assurance is still an under-explored field of research.

scholarly journals Areas of changes in the International Integrated Reporting Framework in the context of substantial changes in the investors' approach to sustainable development issues

2020 ◽  
Vol 108 (164) ◽  
pp. 89-114
Author(s):  
Katarzyna Kobiela-Pionnier
Keyword(s):  
Sustainable Development ◽  
21St Century ◽  
Value Creation ◽  
Investment Decisions ◽  
Financial Information ◽  
Financial Capital ◽  
Integrated Reporting ◽  
Reporting Framework ◽  
International Integrated Reporting Council

The purpose of the article is to present and evaluate the current activities of the International Integrated Reporting Council to improve the International <IR> Framework, in particular the considerations con-tained in the document Integrated Thinking & Strategy. State of Play Report, as well as the proposed change in the approach to the main user of the integrated report in accordance with Topic Paper 3: Chart-ing a path forward. The context for the evaluation is the profound changes in the approach to non-financial information currently taking place among providers of financial capital. They are not only in-creasingly interested in ESG issues to make investment decisions on this basis, but they also include them in their own business activities. In the course of her argument, the author indicates that the main purpose of the IIRC's activities is the transition from monocapitalism to multi-capitalism as a new economic doctrine for the 21st century, which is to be supported by changes in the <IR> Framework and the design of an improved value creation model. The change of the main user of integrated reporting from the pro-vider of financial capital to providers of all capitals planned by IIRC seems to constitute the first element of the materialization of the concept of multi-capitalism.

Integrated Reporting and the Directions of Its Development

2014 ◽  
Vol 9 (2) ◽  
pp. 109-118
Author(s):  
Joanna Krasodomska
Keyword(s):  
Economic Crisis ◽  
External Environment ◽  
Financial Accounting ◽  
Integrated Reporting ◽  
Accounting Research ◽  
Reporting Framework ◽  
International Integrated Reporting Council ◽  
A Company

The aim of the paper is to present the concept of integrated reporting. Its aim is to explain to the stakeholders how value is created by a company with the use of its resources and relations as well as interactions with the external environment. The integrated reporting framework has been developed by the International Integrated Reporting Council, and the reason for this was the economic crisis. It seems that in view of the limitations of traditional financial accounting, it is advisable for companies to start practicing integrated reporting. This issue is also worth addressing within contemporary accounting research. 

scholarly journals The Impact of the Quality of Integrated Reporting Disclosure on Corporate Reputation

2021 ◽  
Vol 16 (3) ◽  
pp. 85-102
Author(s):  
Mira Susanti Amirrudin ◽  
◽  
Mazni Abdullah ◽  
Zakiah Saleh ◽  
◽  
...  
Keyword(s):  
Corporate Reputation ◽  
Annual Reports ◽  
Integrated Reporting ◽  
High Quality ◽  
Corporate Reporting ◽  
Reputation Score ◽  
International Integrated Reporting Council ◽  
The Impact ◽  
A Company

In 2013, the International Integrated Reporting Council (IIRC) issued the Integrated Reporting (IR) Framework to improve corporate reporting. The purpose of IR is to integrate financial and non-financial information to explain how the organisation creates value and improves firm performance over time. Since the introduction of IR, a company weighs the benefits over the costs of changing to IR. Recent trends in IR have heightened the need to examine the actual contents of IR. The objective of this study was to find the relationship between preparing a high-quality IR and corporate reputation. Corporate reputation is one of the main objectives for the preparation of IR, and preparing a high-quality IR can positively impact corporate reputation. Data was collected from a sample of 120 companies from the IIRC websites for three years (360 firm-year observations) to examine the quality of following the 2013 Framework. An index was developed, and the corporate reputation score was collected from the RepTrak websites. The finding showed that companies preparing high-quality IR reports had a significant positive relationship with corporate reputation. Preparing a high-quality IR sends a signal to users of annual reports as a connotation of the company (good product or services, ethical management reporting), which will help build trust towards the company and improve its reputation. This study contributes by providing empirical evidence for a company, which is uncertain about the benefits of IR. The IR disclosure score can be used as a reference by IIRC and policymakers to prepare the IR. Keywords: integrated reporting, disclosure quality, corporate reputation

scholarly journals QUALITY, EFFICIENCY, AND RESPONSIBILITY OF AUDITORS: THEORETICAL AND PRACTICAL ASPECTS

2020 ◽  
pp. 33-39
Author(s):  
M. F. Safonova ◽  
◽  
D. S. Reznichenko ◽  
N. M. Sidenko ◽  
◽  
...  
Keyword(s):  
Audit Quality ◽  
Economic Status ◽  
Financial Information ◽  
Audit Report ◽  
Audit Efficiency ◽  
Procedural Code ◽  
One Year ◽  
The Right ◽  
A Company

Audit quality and responsibility of auditors for rendered services are two concepts closely correlating with each other. The owners and management of a company under auditing, when concluding a contract for audit, concern about getting reliable financial information on the economic status and actual financial effect, as well as about the absence of the risk of being held liable to fines and penalties of tax service in future. For society in general, high-quality audits of economic entities propel the investment processes and the economic efficiency improvement. The content of the concepts of audit quality, audit efficiency considered by the scientific community as the interdependent categories is revealed in the paper concerning the importance of these definitions for an audited person, auditing organization, society, and the state in general. The main goal of the study is the systematization of types and measures of auditors’ responsibility concerning the quality of rendered services and public significance of an auditor profession. As a result of the study, the authors recommended: to enshrine in the law on auditing activity the persons who are other persons granted the right to lodge a claim for recognition of an audit report to be deliberately false; to place disputes on the recognition of an audit report under the arbitration court jurisdiction that is in agreement with Article 27 of Arbitration Procedural Code of the Russian Federation; taking into account the specificity of financial information, which tends to get old rather quickly, it is logical to set a limitation period of one year concerning the recognition of audit report to be deliberately false.

The role of audit committee attributes in intellectual capital disclosures

2015 ◽  
Vol 30 (8/9) ◽  
pp. 756-784 ◽  
Author(s):  
Abdifatah Ahmed Haji
Keyword(s):  
Intellectual Capital ◽  
Audit Committee ◽  
Financial Information ◽  
Policy Changes ◽  
Integrated Reporting ◽  
Content Type ◽  
Corporate Reporting ◽  
Reporting Process

Purpose – This study aims to examine the role of audit committee attributes in non-financial information releases, with a focus on intellectual capital (IC) disclosures, following significant policy changes, mandating the audit committee function in Malaysia. The study argues that, given the changing informational needs of stakeholders and the ongoing discussion on integrated reporting, the role of the audit committee should extend to ensuring the overall quality of corporate reporting. Design/methodology/approach – The study draws evidence from a sample of leading Malaysian companies based on their market capitalisation over a three-year period (2008-2010), a period subsequent to the recent policy changes. The extent and quality of IC information, as a surrogate of non-financial information, was measured and regressed against several audit committee attributes, such as audit committee size, independence, financial expertise and meetings, controlling the overall governance and firm-specific variables. Findings – The findings show a strong positive role of the audit committee function in the overall amount of IC information as well as all three subcomponents of IC information (internal, external and human capital). The results are robust to controls for the overall governance and firm-specific attributes as well as different measures of IC information. Practical implications – The results suggest that the role of the audit committee function extends to non-financial information communication such as IC. Policymakers in Malaysia should, therefore, build on the recent regulatory changes and encourage audit committees to ensure that the overall quality of corporate reporting processes include social, environmental, intellectual as well as financial capital of a firm. Originality/value – This study considers the role of the audit committee in the wider corporate reporting process – drawing attention to its potential role in the espoused integrated business reporting. It also challenges the taken-for-granted assumption that restricts the role of the audit committee function to the traditional financial reporting process.

Intellectual capital disclosure in integrated reporting: an impression management analysis

2015 ◽  
Vol 16 (3) ◽  
pp. 661-680 ◽  
Author(s):  
Gaia Melloni
Keyword(s):  
Content Analysis ◽  
Impression Management ◽  
Intellectual Capital ◽  
Design Methodology ◽  
Public Perceptions ◽  
Integrated Reporting ◽  
Content Type ◽  
International Integrated Reporting Council ◽  
The Relationship

Purpose – Intellectual capital (IC) is fundamental to understanding how firms create value; however, current IC disclosure (ICD) has been described as inadequate due to the lack of an established IC framework and companies’ actual commitment to report IC information. The International Integrated Reporting Council aims to foster ICD by means of integrated reporting (IR); such a report should display how IC and other forms of capital (e.g. financial) contribute to value creation over time. Drawing on impression management (IM) studies, the purpose of this paper is to assess the quality of ICD offered in IR. Design/methodology/approach – A manual content analysis of all the reports available in the International Integrated Reporting Council web site is run considering both the content of ICD and specific linguistic attributes (evidence, time orientation and tone). In addition, the study tests the relationship between the positive ICD tone and specific characteristics that may incentive managers to manipulate their disclosure to determine whether firms use ICD to manage public perceptions of corporate behaviour. Findings – The results of the content analysis show that majority of ICD is focused on relational capital, with limited quantitative and forward-looking information. Additionally, compared to non-ICD, ICD is significantly more optimistic. Furthermore, the positive tone of ICD is significantly associated with declining performance, bigger size and higher level of intangibles supporting the use of ICD as an IM strategy. Originality/value – The research contributes to the literature offering evidence of the quality of the ICD offered in the IR and demonstrating that ICD offered in the IR is used by managers opportunistically to advance their image.

scholarly journals Integrated reporting and stakeholder management: a research agenda,

2021 ◽  
Author(s):  
Anne Carolina dos Santos ◽  
Kelli Juliane Favato ◽  
Marguit Neumann
Keyword(s):  
Content Analysis ◽  
Literature Review ◽  
Research Agenda ◽  
Stakeholder Management ◽  
Future Research ◽  
Integrated Reporting ◽  
Future Studies ◽  
Reporting Framework ◽  
International Integrated Reporting Council

Abstract The purpose of this article was to propose an agenda for future research on stakeholder management in integrated reporting. Framework 1.0 of integrated reporting addresses the management of stakeholders as a routine in the course of business, without further details. In turn, the academy can contribute in this regard. Integrated reporting is a recent development achieved after 30 years (or more) of attempts to effectively expand accountability to stakeholders. The engagement with stakeholders produces successful results in the long term, highlighting the need to indicate to them the value of using integrated reports. Due to the absence of details in Framework 1.0, it is up to academics to actively and cautiously monitor its development and implementation. This article’s contribution is to raise research to bring the practice of integrated reporting closer, as well as generate discussions to involve academics, the International Integrated Reporting Council, national councils, and report writers. Thus, the integrated report was discussed considering that its framework must be updated (how to do it) to impact the practice (the act of doing it). For this, we used a bibliographic methodology and content analysis. We also used the literature review methodology and content analysis. We mapped 11 factors, established 10 qualitative propositions, and 35 insights for future studies. The results indicate that the stakeholder management may have reached its potential in a ceremonial way, but it lacks definitions. For the academy and the International Integrated Reporting Council, the study contributes by mapping factors and suggesting the implementation of guidelines and debates with local commissions to overcome the deficiencies pointed out by this study.

Integrated Reporting — a New Form of Consolidated Statement

Auditor ◽  
2016 ◽  
Vol 2 (10) ◽  
pp. 36-41
Author(s):  
Чхутиашвили ◽  
Lela Chkhutiashvili
Keyword(s):  
Financial Information ◽  
Integrated Reporting ◽  
New Form ◽  
Selection Of

The article is devoted to the preparation of integrated reporting as a new form of consolidated statement, affecting issues of disclosure of non-financial information about the company’s prospects for development, the effectiveness of its selection of methods of competition and business, the environment in which the organization exists, existing or emerging from her opportunities and risks, as well as quality of management

The trend of integrated reporting practice in South Africa: ceremonial or substantive?

2016 ◽  
Vol 7 (2) ◽  
pp. 190-224 ◽  
Author(s):  
Abdifatah Ahmed Haji ◽  
Mutalib Anifowose
Keyword(s):  
South Africa ◽  
South African ◽  
Integrated Reporting ◽  
Content Type ◽  
Reporting Practices ◽  
Trade Offs ◽  
Novel Approach ◽  
Determination Process ◽  
International Integrated Reporting Council

Purpose The purpose of this paper is to examine the trend of integrated reporting (IR) practice following the introduction of an “apply or explain” IR requirement in South Africa. In particular, the authors examine whether the IR practice is ceremonial or substantive in the context of a soft regulatory environment. Design/methodology/approach By way of content analyses, the authors examine the extent and quality of IR practice using an IR checklist developed based on normative understanding of existing IR guidelines. The evidence is drawn from 246 integrated reports of large South African companies over a three-year period (2011-2013), following the introduction of IR requirement in South Africa. Findings The results show a significant increase in the extent and quality of IR practice. The findings also reveal significant improvements in individual IR categories such as connectivity of information, materiality determination process and reliability and completeness of the integrated reports. However, despite the increasing trend and evidence of both symbolic and substantive IR practice, the authors conclude that the current IR practice is largely ceremonial in nature, produced to acquire organisational legitimacy. Practical implications For academics, the authors argue that there is a need to move away from the “what” and “why” aspects of the IR agenda to “how” IR should work inside organisations. In particular, academics should engage with firms through interventionist research to help firms implement integrated thinking and substantive reporting practices. For organisations, the findings draw attention to specific aspects of IR that require improvement. For policymakers, the study provides evidence based on the developmental stage of IR practice and draws attention to certain areas that need clarification. In particular, the International Integrated Reporting Council and Integrated Reporting Committee of South Africa should provide detailed guidelines on connectivity of information, material issues and disclosure of multiple capitals and their trade-offs. Finally, for educators, in line with the ACCA’s embedment of IR in its accounting courses, there is a need to incorporate IR in the curriculum; in particular, the authors argue that the best way to advance IR is in a “ubiquitous” spread in accounting and management courses. Originality/value This study provides empirical account of IR practice over time in the context of a regulatory IR environment. The construction of an IR checklist developed based on normative understanding of local and international IR guidelines is another novel approach of this study.

scholarly journals THE INTEGRATED REPORTING FRAMEWORK ACROSS PUBLIC ADMINISTRATION: A THEMATIC REVIEW

2022 ◽  
Vol 7 (1) ◽  
pp. 410-440
Author(s):  
Mona Othman ◽  
Norida Basnan ◽  
Azlina Ahmad ◽  
Mohd Fairuz Md Salleh
Keyword(s):  
Public Sector ◽  
Public Administration ◽  
Future Research ◽  
Integrated Reporting ◽  
Policy And Practice ◽  
Academic Literature ◽  
Reporting Framework ◽  
Thematic Review ◽  
International Integrated Reporting Council ◽  
Key Aspects

Background and Purpose: The Integrated Reporting framework as emphasised by The International Integrated Reporting Council (IIRC) in 2013 (revised 2021), was accepted as one of the mechanisms nationwide to enhance public accountability. However, far fewer studies examined the intersection of the Integrated Reporting (IR) framework and the public sector. Addressing the gap, reviews of the literature were presented synthesising the adoption of the IR framework across public administration.   Methodology: By drawing upon SCOPUS, Science Direct and Mendeley databases were employed to generate academic literature beginning in 2011 through 2020. Following the inclusion and exclusion processes, 23 articles were selected and analysed by using ATLAS.ti 8.   Findings: The findings of the review were discussed qualitatively and quantitatively. Particular discerning were the qualitative findings; the findings outlined insights into key developments on the IR framework across the following groups, namely, ‘Fundamental Concepts’, ‘Guiding Principles’, and ‘Content Elements’. Key aspects of challenges concerning the adoption of existing frameworks in public administration were discussed.   Contributions: Future research might better consider developing a more appropriate IR framework for public administration, a framework that integrates policy and practice. By focusing on the academic literature emphasising the IR framework, academics, regulators, and reporting organisations could formulate appropriate strategies for public administration.   Keywords: Framework, integrated reporting, public sector, thematic review.   Cite as: Othman, M., Basnan, N., Ahmad, A., & Md Salleh, M. F. (2022). The integrated reporting framework across public administration: A thematic review. Journal of Nusantara Studies, 7(1), 410-440. http://dx.doi.org/10.24200/jonus.vol7iss1pp410-440

Sign in / Sign up

Export Citation Format

Share Document