Maroun, W. orcid.org/0000-0001-7448-1220 (2022) Corporate governance and the use of external assurance for integrated reports. Corporate Governance: An International Review, 30 (5). pp. 584-607. ISSN 0964-8410
Abstract
Research Question/Issue
This paper investigates the relationship between the use of external assurance for testing integrated reports (ESG assurance) and firm-level governance features: the board of directors, the audit and/or risk committee, and the internal audit department. Data are collected from South Africa where integrated reporting and corporate governance practices are mature and listed companies have had more time to implement ESG assurance than in other countries.
Research Findings/Insights
Monitoring attributes of boards of directors promotes the use of ESG assurance which provide both limited (moderate) and reasonable (high) assurance. The monitoring attributes of the audit and risk committees limit the use of limited assurance but are associated with the greater use of reasonable assurance. In contrast, internal audit functions are not affecting the use of ESG assurance.
Theoretical/Academic Implications
The study provides one of the first accounts of how firm-level governance promotes or reduces the use of external assurance in an integrated reporting context. The research also frames ESG assurance as part of the broader corporate governance machinery rather than seeing assurance and governance as separate issues.
Practitioner/Policy Implications
Overall, the findings suggest that ESG assurance is an important part of a combined assurance model. As those charged with governance become more proactive in ensuring the credibility of their organizations' corporate reports, they not only choose to appoint an external assuror but also rely on more extensive testing designed to provide higher levels of assurance.
Metadata
Item Type: | Article |
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Authors/Creators: |
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Copyright, Publisher and Additional Information: | This is the peer reviewed version of the following article: Maroun, W. (2022). Corporate governance and the use of external assurance for integrated reports. Corporate Governance: An International Review, 30(5), 584–607. https://doi.org/10.1111/corg.12430, which has been published in final form at https://doi.org/10.1111/corg.12430. This article may be used for non-commercial purposes in accordance with Wiley Terms and Conditions for Use of Self-Archived Versions. This article may not be enhanced, enriched or otherwise transformed into a derivative work, without express permission from Wiley or by statutory rights under applicable legislation. Copyright notices must not be removed, obscured or modified. The article must be linked to Wiley’s version of record on Wiley Online Library and any embedding, framing or otherwise making available the article or pages thereof by third parties from platforms, services and websites other than Wiley Online Library must be prohibited. |
Keywords: | corporate governance, assurance, integrated reporting, nonfinancial reporting, proactivity |
Dates: |
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Institution: | The University of Leeds |
Academic Units: | The University of Leeds > Faculty of Business (Leeds) > Accounting & Finance Division (LUBS) (Leeds) |
Depositing User: | Symplectic Publications |
Date Deposited: | 06 Feb 2024 14:07 |
Last Modified: | 06 Feb 2024 14:31 |
Published Version: | https://onlinelibrary.wiley.com/doi/10.1111/corg.1... |
Status: | Published |
Publisher: | Wiley |
Identification Number: | 10.1111/corg.12430 |
Open Archives Initiative ID (OAI ID): | oai:eprints.whiterose.ac.uk:208770 |