Assurance on Integrated Reporting: A Critical Perspective
This research investigates how non-financial information is assured in the context of the Integrated Reporting <IR> Framework. In particular, we try to understand, through the lens of the legitimacy theory, whether the assurance process is a tool that enhances user trust.
A study, based on semi-structured interviews with a group of experts, is presented. The respondents are practitioners, academics and investors directly involved in <IR> assurance debates.
Consistent with legitimacy theory, most practitioners agree assurance adds value to the reporting process. However, other academics and investors are skeptical about whether assurance reduces agent-principle gaps. Their main concerns regard the difficulty in assuring qualitative information, and the discretion <IR> grants to management in the reporting process.
We would like to thank Dale Tweedie from Macquarie University for his help, guidance and insightful suggestions.
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