Assurance on non-financial information in Spain

Araya, Helena María Bollas; García, Laura Sierra

doi:10.17533/udea.rc.n79a01

Cited by 3 publications

(3 citation statements)

References 37 publications

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“…External assurance is provided by independent experts, termed assurors, who are usually classified as accountants (audit firms) and non-accountants (engineering firms and small consultancies/boutique firms) (Bollas-Araya and Sierra-García, 2021).…”

Section: Literature Review and Hypotheses Developmentmentioning

confidence: 99%

Sustainable development goals and assurance of non-financial information reporting in Spain

García

Bollas-Araya

Benau

2022

SAMPJ

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Purpose This paper aims to investigate the relationship between corporate reporting on issues related to the Sustainable Development Goals (SDG) and the quality of non-financial information (NFI) corroborated by different types of assurors. Design/methodology/approach The study methods used include logistic regressions, focusing on data for Spanish listed companies in 2017–2018. Findings Analysis shows that companies are more likely to report SDG-related performance when their sustainability report is assured. This association remains constant irrespective of the nature of the assurance, which only became mandatory in Spain following the entry into force of Act 11/2018 in this respect. Moreover, companies that hire KPMG or PwC (two of the big four accounting firms) as assurance providers are more likely to report SDG-related performance than those that hire non-accounting firms. Finally, companies with higher quality assurance statements are more likely to address SDG-related matters. Research limitations/implications The authors believe the findings reported in this paper will help decision-makers better understand the quality of organisations’ contributions towards achieving the SDGs. Furthermore, this paper has implications for stakeholders, policymakers, academics and assurance providers concerning the relationship between SDG-related reporting and the quality of NFI. Originality/value To the best of the authors’ knowledge, no prior research has been undertaken to analyse the relationship between SDG-related company reporting and the assurance of NFI.

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Section: Literature Review and Hypotheses Developmentmentioning

confidence: 99%

Sustainable development goals and assurance of non-financial information reporting in Spain

García

Bollas-Araya

Benau

2022

SAMPJ

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“…Literature review. H. M. Bollas Araya and L. Sierra-García analyzed the procedures for verifi cation of fi nancial reporting by use of the International Standard АА 1000 and the International Standard on Assurance Engagements 3000, with identifying weak and strong sides of each [10].…”

Section: Audit Of Non-financial Reporting: What Standard Should Be Used?mentioning

confidence: 99%

Audit of non-financial reporting: what standard should be used?

LUBENCHENKO,

SHULHA

2023

nasoa

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A business entity of whatever kind seeks to operate in long-term perspective by achieving the strategies set out by it, including the strategies pertaining to social justice, environmental protection, friendly use of natural resources and their renewal. It is also a matter of the society’s concern. It is for this reason that non-financial reporting for sustainable development, provided by business entities, is demanded by users. The verification of non-financial information is assigned to independent auditors. Although auditors use the International Standard 3000 “Assurance Engagements Other Than Audits or Reviews of Historical Financial Information” for the verification purposes, the International Standard 3410 “Assurance Engagements on Greenhouse Gas Statements” can also be applied for specialized spheres. When non-financial information is submitted together with financial reporting, the International Standard 720 (revised) “The auditor’s responsibilities relating to other information” will be applicable. On the request of international donor organizations, an auditor is allowed to use the International Standard 4400 “Agreed-upon procedures engagements”. Given that the International Standard 3000 is the most demanded among the auditors, the International Auditing and Assurance Standards Board provided a guidance on its application. The phases of non-financial reporting audit and their content were clarifi ed on the basis of the International Standard 3000. The choice of an international standard depends on the conditions of an engagement and relies on the professional judgment of an auditor. Irrespective of a chosen standard, an auditor bears the responsibility for the assessment of published non-financial reports for sustainable development. Realizing the responsibility before users of non-financial reporting, an auditor must assure the quality of his services in keeping with the requirements of the International Standard on Quality Management (ISQM 1). The working document of an auditor “Quality assessment of assurance engagements other than audits or reviews of historical financial information (non-financial reporting)” was elaborated, which would help assure the internal control of auditing at engagement level. This document is standardized and can be used in the auditing practice.

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“…H. Bollas Araya and L. Sierra-García analyzed procedures for verification of financial reporting by use of the International Standard АА 1000 and the International Standard on Assurance Engagements 3000 [14].…”

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confidence: 99%

Harmonizing non-financial information of business enterprises in the European Union and Ukraine

Lubenchenko

2023

Stat. Ukr.

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Apart from financial statements, business enterprises make and submit non-financial reporting regulated by several Directives of the European Union (EU), national law of EU member states and Ukraine. Recently these normative documents required amendments, because users of non-financial reporting were concerned with a broader range of supplementary information. It covers company’s goals and strategies; environmental sustainability; extension of the responsibility of company management and top administrative staff for the assurance of sustainability; the concept of materiality and its analysis; the assessment of risks specific to sustainability, affecting the performance of company and having indirect adverse effects for community and environment; the disclosure of information on intangible assets (human, intellectual and social capital); research, development and innovation; social responsibility before employees, respect to human rights and fighting with corruption and bribery. Therefore, the EU Council approved the Corporate Sustainability Reporting Directive. The information disclosure in non-financial report was made the exclusive responsibility of business enterprise management, and it depends on the specific of national law and business activities of an enterprise. Bearing this in mind, the procedure for the compilation of non-financial report was developed, with clarifying the issues that required consideration: structuring of non-financial reporting; setting up the indicators of financial and non-financial reporting; collection of data and estimation of results; preparation, monitoring and presentation of the report. The proposed structuring is meant to help a business enterprise focus on urgent issues of non-financial reporting, first and foremost on highlighting its market sustainability and sustainable development perspectives. A set of indicators characterizing non-financial reports is proposed: ratio of competition intensity, ratio of market advantage, overall index of labor productivity, index of turnover of goods, works and services. Clarifications are made in the basic terminology: non-financial information, non-financial reporting, sustainable development, integrated reporting, and corporate reporting. They help make the procedure for monitoring of non-financial reporting regular and transparent for users.

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Assurance on non-financial information in Spain

Cited by 3 publications

References 37 publications

Sustainable development goals and assurance of non-financial information reporting in Spain

Sustainable development goals and assurance of non-financial information reporting in Spain

Audit of non-financial reporting: what standard should be used?

Harmonizing non-financial information of business enterprises in the European Union and Ukraine

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