Open AccessAssurance on non-financial reporting: theoretical underpinning, standards and practices of companies operating in Western and Eastern Europe
Author(s) -
Joanna Krasodomska,
Paweł Zieniuk
Publication year - 2021
Publication title -
zeszyty teoretyczne rachunkowości
Language(s) - English
Resource type - Journals
eISSN - 2391-677X
pISSN - 1641-4381
DOI - 10.5604/01.3001.0014.8350
Subject(s) - accounting , audit , underpinning , originality , business , scope (computer science) , sustainability reporting , sample (material) , descriptive statistics , finance , corporate social responsibility , public relations , political science , engineering , computer science , chemistry , civil engineering , statistics , mathematics , chromatography , programming language , creativity , law
Objective: The paper presents the issue of non-financial information assurance and identifiesthe practices of companies operating in Europe in this regard.Methodology/research approach: The research is based on a literature review andanalysis of a sample of 935 companies whose non-financial reports, prepared according tothe GRI guidelines, are available from the GRI Sustainability Disclosure Database. Inparticular, we analyze how many companies had their non-financial information verified in2017 and their previous practice in this regard (since 2005), as well as their structure accordingto the assuror type, the assurance standard used, the engagement type, and theassurance scope.Findings: Nearly half of the companies had their non-financial information independentlyand externally verified, including 34 Eastern European companies (30%) and 426 fromWestern Europe (52%). Most of the entities which provide assurance are so-called Big Fouraudit companies, mainly Deloitte and E&Y, which use the ISAE 3000 standard for thispurpose. The most common engagement type is limited engagement.Limitations: The study is descriptive, which results from the nature of the data collected andthe large disparity between companies using assurance in Western and Eastern Europe.Originality/value: The Article broadens accounting knowledge, in particular, on non-financialreporting. It indicates the need to take steps towards the wider use of non-financial informationassurance in Eastern Europe.