The Development of Integrated Reporting and the Role of the Accounting and Auditing Profession

Abstract

A recent significant development in environmental, social and governance (ESG) reporting is the release of the International Integrated Reporting (<IR>) Framework by the International Integrated Reporting Council (IIRC) in December 2013. While there is widespread acknowledgement of the need to improve corporate reporting, a content analysis of the submissions to the IIRC’s discussion paper, consultation draft and exposure documents present varied views of the accounting and auditing profession in respect of how Integrated Reporting IR might effectively apply its principles of reporting connectivity and relationships within organisations. This chapter examines IR and the participation of the accounting and auditing profession during its development, outlining key aspects of the International <IR> Framework. It draws on the profession’s responses to discuss challenges for the accounting and auditing profession in maintaining its relevance in the evolving corporate reporting landscape. It concludes that the initial aims and promise of the International <IR> Framework have been somewhat diluted during the development process; the application of integrated thinking is crucial in achieving IR’s potential, but there are significant challenges facing the profession particularly in respect to building its capacity and cultivating integrated thinking.

Appendix

List of key professional bodies

Acronym	Professional body	Headquartered	Membership
ACCA	The Association of Chartered Certified Accountants	UK	>162,000 in 173 countries
AICPA	American Institute of Certified Public Accountants	US	>394,000 in 128 countries
CIMA	Chartered Institute of Management Accountants	UK	>100,000 in 177 countries
CPA Australia	Certified Practising Accountants Australia	Australia	>150,000 in 121 countries
ICAAa	The Institute of Chartered Accountants in Australia	Australia	>61,000 globally
ICAEW	The Institute of Chartered Accountants in England and Wales	UK	>142,000 globally
ICAS	The Institute of Chartered Accountants of Scotland	UK	>20,000 globally
IIA	Institute of Internal Auditors	US	>180,000 globally
IFAC	The International Federation of Accountants	US	179 members and associates in 130 countries and jurisdictions, representing approximately 2.5 million accountants
FEE	Fédération des Experts-comptables Européens—Federation of European Accountants	Belgium	47 member institutes from 36 European countries with combined membership of >800,000

1. ^aAmalgated with the New Zealand Institute of Chartered Accountants in July 2014, forming Chartered Accountants Australia and New Zealand with > 100,000 members globally