The Case of Sustainability Assurance: Constructing a New Assurance Service<sup>*</sup>

O’Dwyer, Brendan

doi:10.1111/j.1911-3846.2011.01108.x

Cited by 270 publications

(221 citation statements)

References 65 publications

(187 reference statements)

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“…Second, this paper contributes to previous research on making 'new things' auditable (Free et al 2009;O'Dwyer 2011;O'Dwyer et al 2011;Pentland 2000;Power 1996;Radcliffe 1998) and, in particular, it adds to the research of O'Dwyer (2011), who suggests that assurance providers call for auditability to push SER. Our findings show that intracompany groups, in this case Group SEQ, might also call for auditability and alignment with financial accounting to push SER.…”

Section: Resultsmentioning

confidence: 85%

“…Although SEQ staff was aware of this, it was an inherent problem that data reliability could not be assured by internal control to the extent that is possible with financial accounting data. O'Dwyer (2011) reports that assurance providers are challenged by the disconnected nature of data in SER, and, accordingly, weak information systems and lack of internal controls. The nature of the data underpins a perceived need for clients to consult assurance providers for advice on information systems and internal controls.…”

Section: The Difficulties Of Internal Controlsmentioning

confidence: 98%

“…Some studies have been particularly attentive to how forms of knowledge associated with accounting and auditing become established in contexts in which there is a perceived need to make subject matters, beyond financial information, auditable by measuring and reporting indicators of performance (Free et al 2009;O'Dwyer 2011;Power 1996). A key focus in these studies is to understand both the apparent effectiveness of accounting knowledge in legitimizing new subject matter as well as the behind-thescenes controversies associated with the application of accounting knowledge, including the prioritizations and limitations that come with this application.…”

Section: Financial Accounting As a (Superior) Form Of Knowledgementioning

confidence: 99%

“…New subject matters are often sought controllable via auditability systems (Power 1996) because these are believed to minimize individual judgment and enable ex-post inspection or other proofs (Power 1997b(Power , 2007a, and because the application of stable knowledge (accounting) is likely to make datapreparation systems legitimate (O'Dwyer 2011;O'Dwyer et al 2011). This involves attention to who is initiating and developing a case for change, on what basis that case is developed and which responses and technologies that are considered as appropriate for the programme.…”

Section: Problematizationmentioning

confidence: 99%

“…Second, this investigation provides empirical evidence for how and why 'the idea of audit' paves its way into new domains (Free et al 2009;Hopwood 2009;Pentland 2000;Power 1997b;Radcliffe 1998), which extends prior research that focuses on how accounting firms approach the field of sustainability assurance (O'Dwyer 2011;O'Dwyer et al 2011). Although previous work on sustainability assurance also aims to examine the technological capabilities of auditing in the light of its values, it is confined to the context of accounting firms.…”

Section: Introductionmentioning

confidence: 95%

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Changing Social and Environmental Reporting Systems

Kaspersen

Johansen

2014

J Bus Ethics

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Based on a case study of a large multinational group, this paper addresses the way in which social and environmental reporting (SER) systems were changed and the consequences and controversies associated with this change. Drawing on Power's work on the processes by which things are made auditable via underlying systems, we focus on how and why a specific programme with auditability as its ultimate aim changed the basis on which the external social and environmental report was prepared. Our analysis demonstrates that the perceived alignment with the financial report preparation and the explicit pursuit of auditability legitimized SER and paved the way for data systems to be changed. The programme borrowed authority from financial accounting technologies not only to make a system change but also to push SER internally, as we suggest that an intraorganizational group used the programme to ensure the existence and organizational status of SER. However, we also illustrate some of the practical challenges associated with this change, which include issues related to internal control and the establishment of organizational boundaries.

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Section: Resultsmentioning

confidence: 85%

Section: The Difficulties Of Internal Controlsmentioning

confidence: 98%

Section: Financial Accounting As a (Superior) Form Of Knowledgementioning

confidence: 99%

Section: Problematizationmentioning

confidence: 99%

Section: Introductionmentioning

confidence: 95%

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Changing Social and Environmental Reporting Systems

Kaspersen

Johansen

2014

J Bus Ethics

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The Value Relevance of Environmental Audits: Evidence from Japan

et al. 2016

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Environmental audits are implemented internally in order to monitor compliance with environmental laws, regulations and related accounting rules, and to develop recommendations for ways in which to improve environmental accounting processes and performance. In addition, external third‐party assurance on environmental information is used to verify whether firms’ disclosures on environmental information are in compliance with environmental accounting rules and regulations. We examine whether firms’ environmental audits positively affect their market values and whether third‐party assurance strengthens positive effects, using value relevance theory as a theoretical foundation. Our main tests are based on 266 Japanese manufacturing firms’ published environmental reports for the period 2010–2013. We find that the average market value of firms that implement environmental audits is 9 percent greater than those that do not. Further, we find that environmental audits positively affect firm value, largely through interaction with third‐party assurance. Copyright © 2016 John Wiley & Sons, Ltd and ERP Environment

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Credibility of sustainability reports: The contribution of audit committees

2018

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Concerns about the credibility of sustainability reports can be mitigated through assurance. Although audit committee remit encompasses monitoring of sustainability issues, there are potential complementary and substitution issues between governance mechanisms. This paper explores the relationship between audit committees and sustainability reporting assurance using resource dependency theory. We find audit committee characteristics have an impact, additional to that of the board of directors and the existence of sustainability committees, on voluntary sustainability assurance. Our results also show that audit committee independence is associated with use of a Big Four audit firm for sustainability assurance. A negative association between sustainability committees and assurance, however, indicates assurance could be a burden for small firms. Overall, the findings suggest audit committees add credibility and help improve sustainability reporting through their independence, expertise and oversight.

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The Case of Sustainability Assurance: Constructing a New Assurance Service^*

Cited by 270 publications

References 65 publications

Changing Social and Environmental Reporting Systems

Changing Social and Environmental Reporting Systems

The Value Relevance of Environmental Audits: Evidence from Japan

Credibility of sustainability reports: The contribution of audit committees

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The Case of Sustainability Assurance: Constructing a New Assurance Service*

Cited by 270 publications

References 65 publications

Changing Social and Environmental Reporting Systems

Changing Social and Environmental Reporting Systems

The Value Relevance of Environmental Audits: Evidence from Japan

Credibility of sustainability reports: The contribution of audit committees

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Product

Resources

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The Case of Sustainability Assurance: Constructing a New Assurance Service^*