Abstract
Could integrated reporting become the future framework of corporate reporting; that is, “the next step in the evolution of corporate reporting” (International Integrated Reporting Council in The International <IR> Framework. International Integrated Reporting Council, London 2013: 1)? Some benefits and issues regarding the use of integrated reporting (IR) are outlined. First, it is claimed that IR can provide new opportunities to enhance the quality of corporate auditing. By measuring the quality of disclosure of each of the six forms of capital of IR, as well as the audit risk, through its main qualitative and quantitative components, the effects of IR can be better linked to specific features of corporate auditing. Secondly, IR can be both beneficial and detrimental with regard to audit fees, depending on the type of capital and the different audit risk component involved. Thirdly, contrary to expectations, assurance on IR quality does not enhance the effect of IR on audit risk and audit fees. Further research could explore issues related to those investigated in this study. More specifically, there is a call to move towards the second, third and fourth stages of research in the IR field in order to better understand the benefits and costs attached to the preparation and use of IR by both companies and their stakeholders.
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Notes
- 1.
This class includes the Energy and the Material sectors with the following sub-classes: Oil & Gas Drilling; Oil & Gas Equipment & Services; Integrated Oil & Gas; Oil & Gas Exploration & Production; Oil & Gas Refining & Marketing; Oil & Gas Storage & Transportation; Coal & Consumable Fuels; Commodity Chemicals; Diversified Chemicals; Fertilizers & Agricultural Chemicals; Industrial Gases; Specialty Chemicals; Construction Materials; Metal & Glass Containers; Paper Packaging; Aluminium; Diversified Metals & Mining; Copper; Gold; Precious Metals & Minerals; Silver; Steel; Forest Products; Paper Products (Thomson Reuters Datastream).
- 2.
This class includes the Industrial and Consumer Discretionary sectors with the following sub-classes: Aerospace & Defense; Building Products; Construction & Engineering; Electrical Components & Equipment; Heavy Electrical Equipment; Industrial Conglomerates; Construction Machinery & Heavy Trucks; Agricultural & Farm Machinery; Industrial Machinery; Trading Companies & Distributors; Commercial Printing; Environmental & Facilities Services; Office Services & Supplies; Diversified Support Services; Security & Alarm Services; Human Resource & Employment Services; Research & Consulting Services; Air Freight & Logistics; Airlines; Marine; Railroads; Trucking; Airport Services; Highways & Railtracks; Marine Ports & Services; Auto Parts & Equipment; Tires & Rubber; Automobile Manufacturers; Motorcycle Manufacturers; Consumer Electronics; Home Furnishings; Homebuilding; Household Appliances; Housewares & Specialties; Leisure Products; Apparel, Accessories & Luxury Goods; Footwear; Textiles; Casinos & Gaming; Hotels, Resorts & Cruise Lines; Leisure Facilities; Restaurants; Education Services; Specialized Consumer Services; Advertising; Broadcasting; Cable & Satellite; Movies & Entertainment; Publishing; Distributors; Internet & Direct Marketing Retail; Department Stores; General Merchandise Stores; Apparel Retail; Computer & Electronics Retail; Home Improvement Retail; Specialty Stores; Automotive Retail; Home furnishing Retail.
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Acknowledgements
The authors would like to acknowledge the insightful comments of anonymous reviewers of the manuscript, which enhanced the quality of this study, although we alone are responsible for the findings, recommendations and errors in the manuscript. We would like to thank the assistant editor of this book series. We are also grateful to Delio Panaro for his valuable support in the data analysis. Our families, friends and colleagues also contributed in supporting us in carrying this project forward. This study is part of a larger project on voluntary disclosure and audit quality.
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Demartini, C., Trucco, S. (2017). Concluding Remarks. In: Integrated Reporting and Audit Quality. Contributions to Management Science. Springer, Cham. https://doi.org/10.1007/978-3-319-48826-4_6
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