Assurance of sustainability reports: Revision of ISAE 3000 and associated research opportunities

Abstract

Purpose

The International Auditing and Assurance Standards Board (IAASB) is currently in the process of revising International Standard on Assurance Engagements (ISAE) 3000. The purpose of this paper is to review the implications of this revision process for providing assurance on sustainability reports, and identify policy‐related research opportunities associated with this review.

Design/methodology/approach

The paper takes the form of a conceptual and critical review of standards development, and archival analysis of ISAE 3000 exposure draft responses.

Findings

In the revision of ISAE 3000, concerns have been expressed by a number of parties around the distinction between reasonable and limited assurance, the procedures necessary in properly undertaking a limited assurance engagement and the structure and content of a limited assurance report. These concerns can be addressed by appropriate research initiatives which can inform these policy issues.

Research limitations/implications

Research opportunities are identified, in particular the use of experimental design to examine implications of changing the requirements of the procedures for limited assurance on assurance practitioners and of changing aspects of the assurance report on the level of assurance conveyed by limited assurance reports.

Practical implications

The paper contains a review of the standard‐setting process and has implications for assurance providers of sustainability reports, standard setters and regulators.

Originality/value

The paper provides an update of relevant standards for assurers of sustainability reports and review and appraisal of issues raised in the recent revision process of ISAE 3000.

Citation

Simnett, R. (2012), "Assurance of sustainability reports: Revision of ISAE 3000 and associated research opportunities", Sustainability Accounting, Management and Policy Journal, Vol. 3 No. 1, pp. 89-98. https://doi.org/10.1108/20408021211223570