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Open Access
Article
Publication date: 5 August 2019

Ahmed H. Al-Dmour, Masam Abood and Hani H. Al-Dmour

This study aims at investigating the extent of SysTrust’s framework (principles and criteria) as an internal control approach for assuring the reliability of accounting…

6179

Abstract

Purpose

This study aims at investigating the extent of SysTrust’s framework (principles and criteria) as an internal control approach for assuring the reliability of accounting information system (AIS) were being implemented in Jordanian business organizations.

Design/methodology/approach

The study is based on primary data collected through a structured questionnaire from 239 out of 328 shareholdings companies. The survey units were the shareholding companies in Jordan, and the single key respondents approach was adopted. The extents of SysTrust principles were also measured. Previously validated instruments were used where required. The data were analysed using t-test and ANOVA.

Findings

The results indicated that the extent of SysTrust being implemented could be considered to be moderate at this stage. This implies that there are some variations among business organizations in terms of their level of implementing of SysTrust principles and criteria. The results also showed that the extent of SysTrust principles being implemented was varied among business organizations based on their business sector. However, there were not found varied due to their size of business and a length of time in business (experience).

Research limitations/implications

This study is only conducted in Jordan as a developing country. Although Jordan is a valid indicator of prevalent factors in the wider MENA region and developing countries, the lack of external validity of this research means that any generalization of the research findings should be made with caution. Future research can be orientated to other national and cultural settings and compared with the results of this study.

Practical implications

The study provides evidence of the need for management to recognize the importance of the implementation of SysTrust principles and criteria as an internal control for assuring the reliability of AIS within their organizations and be aware which of these principles are appropriate to their size and industry sector.

Originality/value

The findings would be valuable for academic researchers, managers and professional accounting to acquire a better undemanding of the current status of the implementation of the SysTrust principles (i.e., availability, security, integrity processing, confidentiality, and privacy) as an internal control method for assuring the reliability of AIS by testing the phenomenon in Jordan as a developing country.

Details

International Journal of Accounting & Information Management, vol. 27 no. 3
Type: Research Article
ISSN: 1834-7649

Keywords

Open Access
Article
Publication date: 11 November 2022

Kofi Mintah Oware and V. Harshitha Moulya

There is a growing interest in how firms respond to environmental degradation and societal challenges. Firms respond through their sustainability reports, but assurance of the…

1338

Abstract

Purpose

There is a growing interest in how firms respond to environmental degradation and societal challenges. Firms respond through their sustainability reports, but assurance of the reports gives confidence to the stakeholders. This study aims to identify the main research development in sustainability assurance which is rising in global studies.

Design/methodology/approach

This study uses a bibliometric analysis to assess the global trend in sustainability assurance studies. The methodology is based on descriptive, performance and science mapping. The set is based on 655 documents from the Scopus database, covering the period from 2005 to 2022.

Findings

The findings from the study suggest that sustainability studies are relevant, and the researcher's examination of the domain has dramatically increased from 2014 to date. This is due to the rise in the concerns expressed by stakeholders in satisfying themselves about the firm's responsibility to the Sustainable Development Agenda 2030. The findings also show that most research on sustainability assurance is from Spain, the USA, the United Kingdom (UK) and Australia. However, the UK has the most collaboration in terms of co-authorship. It is suggestive that the UK has more links than Spain, which is the most productive country with more publications. This may be attributed to the influx of more international students completing a second and third degree in the UK. The study highlights intellectual foundations and emerging trends and outlines avenues for future studies.

Research limitations/implications

This study is limited to the data obtained from the Scopus database.

Originality/value

This study is the first bibliometric study of the sustainability assurance domain.

Details

South Asian Journal of Marketing, vol. 4 no. 2
Type: Research Article
ISSN: 2719-2377

Keywords

Open Access
Article
Publication date: 5 June 2020

Reiner Quick and Petra Inwinkl

This paper aims to clarify whether assurance on non-financial corporate social responsibility (CSR) reports impacts the perceptions and decisions of banks as capital providers…

6519

Abstract

Purpose

This paper aims to clarify whether assurance on non-financial corporate social responsibility (CSR) reports impacts the perceptions and decisions of banks as capital providers. The authors investigate the effects of the type of assurance provider and the level of assurance provided on decisions by banks to grant credit, make their own personal investments or recommend share purchases to their customers. The study aims to expand the domain of assurance on CSR reports (CSRR) by taking up a call by Cohen and Simnett (2015), who ask for behavioral research on how non-financial report’s intended users interpret and react to assurance.

Design/methodology/approach

The paper is based on an experiment case on a fictitious company with a 2 × 2 + 1 between-subjects design. To overcome concerns regarding external validity and to prove results in a real-world setting, the authors selected German bank directors as subjects due to the extremely high relevance of banks to the German economy. The authors investigated the perceptions of 69 bank directors and analyzed the influence of CSR assurance on their decisions.

Findings

The findings suggest that assurance positively influences confidence in CSRR and that, consequently, bankers are more likely to make favorable decisions toward the reporting companies, such as approving applications for credit, investing themselves in the company or recommending the purchase of shares to their clients. These effects are stronger when an accounting firm provides the assurance and when the assurance level is reasonable rather than limited.

Research limitations/implications

The arguments presented are, strictly speaking, limited to the case in the experiment and the views held by the bank directors at the time the authors sent out the questionnaires. Moreover, the cell sizes are quite small. Nevertheless, the authors were able to find highly significant results.

Practical implications

The main implication of the paper is that the purchase of CSRR assurance services has a positive effect on bank directors’ perceptions and decisions. They favor the provision of such services by accounting firms and they prefer a reasonable assurance level. Thus, it can be concluded that bank directors perceive quality differences between assurance providers, are able to recognize the difference between reasonable and limited assurance and that the related information is relevant for their decisions.

Originality/value

This paper fulfils an identified need to study the influence of CSRR assurance on decisions by bank directors. The observation of a high decisions-usefulness of CSRR assurance suggests that regulators should consider mandating some form of assurance on non-financial reports throughout the EU member states.

Details

Meditari Accountancy Research, vol. 28 no. 5
Type: Research Article
ISSN: 2049-372X

Keywords

Open Access
Article
Publication date: 25 May 2023

Mercedes Luque-Vílchez, Michela Cordazzo, Gunnar Rimmel and Carol A. Tilt

This paper aims to investigate the current state of knowledge in key reporting aspects in relation to sustainability reporting in general and to reflect on their relevance to…

3186

Abstract

Purpose

This paper aims to investigate the current state of knowledge in key reporting aspects in relation to sustainability reporting in general and to reflect on their relevance to Global Reporting Initiative (GRI) in particular. In doing so, the major gaps in that knowledge are identified, and the paper proceeds to suggest further research avenues.

Design/methodology/approach

The authors conduct a review of papers published in leading journals concerning sustainability reporting to analyse the progress in the literature regarding three important reporting topics: materiality, comparability and assurance.

Findings

The review conducted in this study shows that there is still work to be done to ensure high-quality and consistent sustainability reporting. Key takeaways from the review of the extant literature are as follows: there is ongoing debate about the nature of sustainability reporting materiality, and single versus double materiality. Clearer guidance and better contextualisation are seen as essential for comparability, and, as GRI suggests, there is an important link to materiality that needs to be considered. Finally, assurance has not been mandatory under the GRI, but the current development at EU level might lead to the GRI principles being incorporated in the primary assurance standards.

Practical implications

In this paper, the authors review and synthesise the previous literature on GRI reporting dealing with three key reporting aspects.

Social implications

The authors extract some takeaways from the literature on materiality, comparability and assurance that will all be key challenges for GRI in the future.

Originality/value

This paper provides an updated review of the literature on GRI reporting dealing with three key reporting aspects.

Details

Sustainability Accounting, Management and Policy Journal, vol. 14 no. 4
Type: Research Article
ISSN: 2040-8021

Keywords

Open Access
Article
Publication date: 31 August 2017

Fatah Behzadian and Naser Izadi Nia

In this research, using an analytical framework on factors affecting the quality of auditing services, we consider factors that affect an expectations gap in providers and users…

1868

Abstract

In this research, using an analytical framework on factors affecting the quality of auditing services, we consider factors that affect an expectations gap in providers and users of auditing services related to factors affecting auditing quality. Effective factors studied in this regard are professional features, including the professional role of individuals in the auditing process (auditors against preparers of financial statements), professional experience of individuals, professional rating and size of auditing firms. The first statistical society consists of certified public accountants (CPAs) working in the auditing organization and audit firms in Iran, and the second statistical society consists of all investment companies that operate under the supervision of the Tehran Stock Exchange Organization. Based on the results of the research, the role of professionals in the auditing process is not effective as an independent auditor or financial statements provider, as well as the professional experience of individuals in the expectations gap from factors affecting auditing quality, while the size and qualities of the auditing firms were influenced by the expectations gap of individuals in the field of auditing regulation.

Details

Asian Journal of Accounting Research, vol. 2 no. 2
Type: Research Article
ISSN: 2459-9700

Open Access
Article
Publication date: 7 November 2019

Johannes Slacik and Dorothea Greiling

Materiality as an emerging trend aims to make sustainability reports (SR) more relevant for stakeholders. This paper aims to investigate whether the reporting practice of electric…

2895

Abstract

Purpose

Materiality as an emerging trend aims to make sustainability reports (SR) more relevant for stakeholders. This paper aims to investigate whether the reporting practice of electric utility companies (EUC) is in compliance with the materiality principle of the Global Reporting Initiative (GRI) when disclosing SR.

Design/methodology/approach

A twofold content analysis focusing on material aspects (MAs) is conducted, followed by correlation analysis. Logic and conversation theory (LCT) serves to evaluate the communication quality of documented materiality in SR by EUC.

Findings

The coverage and quality of documented MAs in SR by EUC do not meet the requirements for relevant and transparent communication. Materiality does not guide the reporting practice and is not taken seriously.

Research limitations/implications

Mediocre quality of coverage and communication in SR shows that stakeholders’ information needs are not considered adequately. The content analysis is limited in focusing on merely documented aspects rather than on actual performance.

Originality/value

This study considers the quality of communication of documented materiality through the lens of LCT. It contributes to the academic debate by introducing LCT as a viable theoretical perspective for analyzing SR. The paper evaluates GRI-G4 reporting practices in the electricity sector, which, while under-researched is crucial for sustainability. It also contributes to the emerging body of empirical research on the relevance of materiality as a guiding principle for sustainability reporting.

Details

International Journal of Energy Sector Management, vol. 14 no. 3
Type: Research Article
ISSN: 1750-6220

Keywords

Open Access
Article
Publication date: 9 June 2021

Barbara Borgato and Pier Luigi Marchini

The purpose of this paper is to explore the practice of integrated reporting (IR) assurance from the auditors’ point of view, including the main challenges to be addressed and…

2119

Abstract

Purpose

The purpose of this paper is to explore the practice of integrated reporting (IR) assurance from the auditors’ point of view, including the main challenges to be addressed and insights on evolution and potential new assurance approaches.

Design/methodology/approach

Based on an exploratory research design, the paper conducted semi-structured interviews with 10 expert auditors, accounting assurance providers and non-accounting assurance providers, in the Italian context, combining an open coding approach with an axial coding approach, and using a three-stage process to organize data.

Findings

Respondents confirmed that current IR practices do not represent a real paradigm shift and that the need for in-depth changes in the assurance approach will depend on how these practices evolve. The main challenges highlighted are the absence of suitable criteria, the difficulty of assuring narratives and future-oriented information, and the low level of maturity of internal systems and processes of companies and stakeholders. Proposals for overcoming these challenges are framed mainly within current assurance models, although some respondents pointed out the need for a shift towards new assurance approaches.

Research limitations/implications

The paper relies on a small sample of well-informed subjects active in Italy; thus, the results may not represent the views of all auditors.

Practical implications

The findings identify areas that practitioners and assurance provider firms should focus on, looking to IR assurance and its growing importance and application as a future business area. They may be useful to standard setters and regulators to better understand limits and opportunities of requiring IR assurance on specific information not strictly related to financial information, and for the development of guidance or standards for IR assurance.

Originality/value

This research contributes to the currently underexplored area of IR assurance. Relatively few studies have investigated this topic from an empirical point of view, and no study involving auditors has been carried out in the Italian context.

Details

Meditari Accountancy Research, vol. 29 no. 7
Type: Research Article
ISSN: 2049-372X

Keywords

Open Access
Article
Publication date: 14 November 2022

Sara Trucco, Maria Chiara Demartini, Kevin McMeeking and Valentina Beretta

This paper aims to investigate the effect of voluntary non-financial reporting on the evaluation of audit risk from the auditors’ viewpoint in a post-crisis period. Furthermore…

1253

Abstract

Purpose

This paper aims to investigate the effect of voluntary non-financial reporting on the evaluation of audit risk from the auditors’ viewpoint in a post-crisis period. Furthermore, this paper analyses whether auditors perceive that voluntary non-financial reporting impacts audit risk differently for old clients as compared with new clients.

Design/methodology/approach

This study is conducted on a sample of Italian audit firms through a paper-based questionnaire. Both Big4 and non-Big4 audit firms have been included in the sample.

Findings

Results show that integrated reporting is perceived to be the most relevant reporting method and intellectual capital statement the least relevant. Surprisingly, empirical findings over the sample period show that auditors do not perceive statistically significant differences between old and new clients.

Practical implications

Auditors can identify opportunities to adapt their assessment model to include voluntary non-financial report information. Moreover, they can use different assessment models regarding the research variables in the case of new and old clients.

Originality/value

Empirical findings highlight the growing role of voluntary non-financial reporting in the auditors’ perception of their client’s audit risk. All the observed voluntary non-financial reporting forms, except for intellectual capital, are considered as relevant by auditors in the evaluation of their client’s audit risk when compared to an indifference point. In addition, findings reveal that female auditors perceive a reduced gap in the relevance between integrated reports and intellectual capital reports compared to their counterparts.

Details

Meditari Accountancy Research, vol. 30 no. 7
Type: Research Article
ISSN: 2049-372X

Keywords

Open Access
Article
Publication date: 13 September 2022

Swaminathan Ramanathan and Raine Isaksson

This paper explores quality science and quality management as a potential pathway to resolve the challenges of corporate sustainability reporting (CSR) by establishing the need…

4507

Abstract

Purpose

This paper explores quality science and quality management as a potential pathway to resolve the challenges of corporate sustainability reporting (CSR) by establishing the need for a common understanding of sustainability and sustainable development.

Design/methodology/approach

Secondary research on key documents released by regulatory institutions working at the intersection of sustainability, corporate reporting, measurement and academic papers on quality science and management.

Findings

Existing measurement frameworks of CSR are limited. They are neither aligned nor appropriate for accurately measuring a company's ecological footprint for mitigating climate change. Quality for sustainability (Q4S) could be a conceptual framework to bring about an appropriate level of measurability to better align sustainability reporting to stakeholder needs.

Research limitations/implications

There is a lack of primary data. The research is based on secondary literature review. The implications of Q4S as a framework could inform research studies connected to sustainable tourism, energy transition and sustainable buildings.

Practical implications

The paper connects to CSR stakeholders, sustainability managers, company leaderships and boards.

Social implications

The implications of sustainability on people, purpose and prosperity are a part of World Economic Forum's stakeholder capitalism.

Originality/value

This paper fills a research gap on diagnosing and understanding the key reporting challenges emerging from the lack sustainability definitions.

Details

The TQM Journal, vol. 35 no. 5
Type: Research Article
ISSN: 1754-2731

Keywords

Open Access
Article
Publication date: 30 April 2020

Lorenzo Simoni, Laura Bini and Marco Bellucci

The purpose of this study is to extend existing knowledge on the determinants of sustainability report (SR) assurance practices. Four different theories – stakeholder theory…

8914

Abstract

Purpose

The purpose of this study is to extend existing knowledge on the determinants of sustainability report (SR) assurance practices. Four different theories – stakeholder theory, institutional theory, signaling theory and legitimacy theory – are used to formulate several hypotheses regarding the main factors that can influence a company’s decision to assure its SRs.

Design/methodology/approach

Using a sample of 417 listed organizations based in different European countries over five years, the effects of stakeholder commitment, country orientation toward sustainability, firm environmental performance and business ethics controversies on the decision to assure SRs are assessed.

Findings

The results show that a company’s decision to assure its SRs is motivated by the need to maintain good relations with its stakeholders (which is in line with stakeholder theory and legitimacy theory), as well as by the willingness to signal their sustainability performance (which is in line with signaling theory) and to gain legitimacy. On the contrary, business ethics controversies do not seem to be relevant to a company’s assurance practices.

Originality/value

This paper provides new insights into the influence that social, environmental and institutional factors have on assurance strategies. New factors that previous research does not investigate – environmental performance, business ethics controversies and corporate governance – are tested. Factors that are already investigated in the literature are considered from an original perspective of introducing alternative measures (e.g. for the scope of national sustainability policies).

Details

Meditari Accountancy Research, vol. 28 no. 6
Type: Research Article
ISSN: 2049-372X

Keywords

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