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The purpose of this paper is to analyze how the COBIT framework, integrated within the internal control framework, enables improvement in the quality of financial reporting while helping to reduce or eliminate the material weaknesses (MWs) of internal control over financial reporting (ICFR). The Control Objectives for Information and Related Technology (COBIT) model is a framework for information technology (IT) management and IT governance. It is a supporting toolset that allows managers to bridge the gap between control requirements, technical issues and business risks. Preliminarily, the analysis in this paper illustrates how the Committee of Sponsoring Organizations (COSO) framework impacts on the MWs, highlighting strengths and weaknesses. This paper shows how these limits can be overcome with the use of the COBIT framework.

This is a conceptual paper that aims to highlight the relationship between COBIT and COSO, by illustrating how the IT processes reduce or eliminate the main MW categories.

The analysis indicates that the implementation of the COBIT framework, or more generally the adoption of effective IT controls, provides important benefits to the entire company or organization. IT control objectives have a direct impact on the IT control weaknesses and indirectly on the other categories of material weaknesses.

The adoption of the framework allows managers to implement effective ICFR. In particular, the COBIT approach provides managers with a more evolved tool in terms of compliance with the Sarbanes–Oxley Act requirements. This framework also improves the reliability of financial reporting in relation to the requirements of Public Company Accounting Oversight Board’s Auditing Standards No. 2 and 5.

The analysis provides an interdisciplinary approach, connecting accounting and information systems themes, and suggest solutions and tools than can help managers to address the internal control weaknesses. This paper addresses an area of relevance to both practitioners and academics and expands existing accounting literature.

Purpose – Although it is acknowledged that the dissemination of financial information to stakeholders is a communications process, the main focus of prior research has been on the documents themselves rather than the context in which the information is generated, selected and disseminated. This paper remedies this deficiency by drawing on communication theory to construct a substantive model of the annual financial reporting exercise. Design/methodology/approach – A longitudinal study employing grounded theory was conducted in a non‐market corporate in the U.K. This involved documentary analysis, non‐participant observation and in depth interviews. Findings – The research identified three distinct functions of financial reporting which are formed through the inter‐action of four major determinants: producers' objectives, stakeholders' objectives, the political determinant, the environmental determinant. The level of satisfaction of producers and stakeholders with the perceived function of the annual corporate report leads to an aftermath. This may be either a reinforcement aftermath or it may be a destabilizer aftermath that will necessitate changes in the four determinants. Research limitations/implications – The study was conducted in a non‐market corporate in the UK and caution should be used in attempting to generalize to market corporates. Originality/value – The substantive model offers a diagnostic framework to further explore the nature and dynamics of the annual financial reporting exercise with the evidence of an aftermath being a key finding from the research.

This paper aims to provide a historical review for several leading documents in relation to the objectives of financial statements. These documents are: The Trueblood Report, The Corporate Report, Making Corporate Reports Valuable; and Guidelines for Financial Reporting Standards. These documents have a significant importance in financial reporting literature.

Content analysis approach was adopted in this study given its analytical and comparative nature of historical documents. In terms of studying historical data, content analysis main advantage is objectivity, in addition to its ability to provide unobtrusive evidence of historical trends.

The historical review showed that the basic objective of financial statements is concerned with providing useful information for economic decision making. In addition, it emphasized that information is useful when: it shows economic reality of the financial statements (i.e. balance sheet, income statement and cash flow statement); and it is relevant and reliable to users.

In view of the comparison and analysis above, the four documents emphasized on the usefulness of accounting for decision‐making purposes and as such it leads to an inference that accounts should essentially portray economic reality.

In light of current financial reporting failure, it is important to revise leading documents in relation to the objectives of financial statements and to evaluate current developments. This paper is of much value to the accounting profession, as well as to the corporate reporting setters.

This study reviews research that examines economic and behavioural consequences of CSR reporting regulations. Specifically, the authors evaluate the impact of CSR reporting regulations on (1) reporting quality, (2) capital-markets and (3) firm behaviour.

The authors first describe the stated objectives and enforcement level of CSR reporting regulations around the world. Second, the authors review over 130 archival studies in accounting, finance, economics, law and management that examine consequences of the regulations.

The stated objectives and enforcement of CSR reporting regulations vary considerably across countries. Empirical research finds no significant changes in reporting quality and generally concludes that CSR reporting continues to be ceremonial rather than substantive after the regulations – consistent with corporate legitimation and “greenwashing” views. In contrast, growing evidence shows both positive and negative capital-market and real effects of the regulations. Overall, the findings from this review indicate that, on balance, there remains a significant number of questions on the net effects of CSR reporting regulations.

The authors offer a comprehensive review of the literature examining consequences of CSR reporting regulations. The authors identify apparent tensions in studies assessing different outcomes after the regulations: between symbolic reporting and positive capital-market outcomes; between profitability and CSR; and between CSR and the welfare of non-shareholder groups. Additionally, we highlight differences in the scope and stated objectives of CSR regulations across countries, with the regulations often reflecting socio-economic development and national interests of implementing countries. Collectively, our review indicates that institutional details are crucial when considering the design or consequences of CSR reporting regulations and/or standards.

This study aims to examine the influence and behaviour of the European Financial Reporting Advisory Group (EFRAG)/European Commission, and the International Financial Reporting Standards (IFRS) Foundation/International Sustainability Standards Board in the standardisation of sustainability reporting arena and their implications for the Global Reporting Initiative’s (GRI) current position.

This paper draws on the arena concept, particularly the work of Renn (1992) and Georgakopoulous and Thomson (2008), to explore the EFRAG and the IFRS Foundation’s behaviour towards the standardisation of the sustainability reporting arena and their implications for the GRI’s current position. Further, the documents and public releases pertinent to the activities and output of the GRI, the EFRAG/European Commission and the IFRS Foundation are used. The documents are screened and analysed based on the key elements of arena concept that emerged, which includes “agenda, claims, network of bodies and group engaged, interaction and behaviour with arena issues (audience, materiality, scope and core priorities, purpose of reporting and relevance to sustainable development)”.

This study reveals the source of motivation and influence of the new standard setters in the sustainability reporting arena and documents the relevance of their behaviour as an actionable strategy to change the arena rule. Particularly, this paper demonstrates the perceived fall away from driving business behaviour towards the pursuit of sustainable development if the GRI and its standards cease to exist.

The pathway to achieve sustainable development and improve sustainability impact disclosure remains a debatable issue among policymakers and users of sustainability reporting standards. This study reconstructs the awareness of different dynamics at play inhibiting the harmonisation of sustainability reporting standardisation and the importance of the GRI in pursuing global sustainable development.

The pattern of behaviour and agenda of sustainability institutions and influential standard setters harnessed in this paper are aimed at enabling the existence of the rules that can uphold the primary focus of the sustainability reporting arena, particularly in achieving global sustainable development.

This paper furthers the understanding of the importance of the GRI in upholding the key tenets and traditional agenda of sustainability reporting and sustainable development.

The purpose of this paper is to document a study of European and UK triple bottom line (TBL) report assurance statements.

In undertaking the research, an international database was constructed from which all known European and UK third‐party assurance statements that accompanied the release of TBL reports were selected for review.

The results of the analysis indicate that there is much variability and ambiguity inherent within the contents of the third‐party statements.

The UK and European reports included within the database compiled by the researchers provide the basis of the information used to develop this paper. In selecting assurance statements to include within the database, the latest TBL report from each reporting organization was obtained (and it should be appreciated that many organizations do not produce TBL reports on an annual basis). Of the 170 reports available internationally at the time the research was undertaken, 8 are from 2000, 86 from 2001, 65 from 2002, and 11 from 2003. Whilst the database is the most extensive one of its type, given the finite nature of resources available, it is stressed that the database is not exhaustive.

Taken together, the results of this analysis lead us to question the value that such assurance statements provide to the TBL reporting process.

Assesses the ambiguity and questions the value of assurance work on TBL statements as currently being undertaken.

Many developing countries such as South Africa have been introducing measurement of results to improve public service delivery. The practice of development of performance measures in the public service emanates from pressure exerted by citizens who are calling for more efficiency and effectiveness in delivering services. This article examines the implementation of the audit of pre-determined objectives at the Department of Basic Education (DBE).

This study is based on a qualitative case study approach. Secondary sources of data were used in order to analyse the DBE's challenges in managing performance information. Key secondary documents used include the AGSA annual audit reports as well as the DBE 2010/11–2014/15 Strategic Plan and Annual Performance Plans (APP) that provide the pre-determined objectives selected by the Department to measure performance for the five-year period.

The findings indicate that there are shortcomings in the processes of managing performance information. Based on the findings, it is incumbent upon the senior management of the DBE to strive towards understanding and improving their oversight roles and responsibilities in the management of pre-determined objectives.

The study generates a deeper understanding of what has been happening when pre-determined objectives were developed, reported or assessed in the DBE. This will assist the Department and similar public institutions to make further improvements in order to achieve pre-determined objectives.

The purpose of this paper is to analyse the current developments to “mainstream” and standardise sustainability reporting and the consequences of those changes. Those changes give rise to the colonisation of sustainability reporting through the adoption of financial reporting concepts.

This research draws on critical theory, particularly the work of Foucault, to understand the dynamics of accounting change. This approach provides an alternative to the current narrative that the concepts that underpin reporting are universal and timeless.

It is suggested that if the aim of mandatory sustainability reporting is to promote companies adopting sustainable business models, then it must properly reflect the context of the company. Both transactive and relationship information is critical to providing an account that can be used to judge the performance of the corporation beyond its production of short-term net positive cash flows.

The design of standard setting arrangements for sustainability reporting needs to recognise that it may be unhelpful to simply adopt financial reporting concepts for the purposes of directing corporate behaviour towards sustainable development.

Continuing to adopt a view of the corporation as a nexus of contracts with no clear accountability to stakeholders is likely to stymie efforts to deal with the environmental and social crisis facing people and planet.

Whilst other works have considered the development of sustainability reporting, to the best of the author’s knowledge, this is the first study to consider the impacts of “mainstreaming” it within mandatory corporate reporting.