TY - JOUR
T1 - Assuring the unknowable
T2 - a reflection on the evolving landscape of sustainability assurance for financial auditors
AU - Harrer, Theresia
AU - Lehner, Othmar M.
N1 - Funding Information:
This research was financially supported by the EU Horizon Programme TC4BE – 101082057 – GAP - 101082057 on Pathways for BioDiversity. The European Commission’s support for the production of this publication does not constitute an endorsement of the contents, which reflects the views only of the authors, and the Commission cannot be held responsible for any use which may be made of the information contained therein.
Funding Information:
This research was financially supported by the EU Horizon Programme TC4BE – 101082057 – GAP-101082057 on Pathways for BioDiversity. The European Commission's support for the production of this publication does not constitute an endorsement of the contents, which reflects the views only of the authors, and the Commission cannot be held responsible for any use which may be made of the information contained therein.
Publisher Copyright:
© 2024 The Author(s)
PY - 2024/4
Y1 - 2024/4
N2 - This essay delves into the evolving role of audit engagements in assuring sustainability reports. While traditional and contemporary auditing focus primarily on evaluating financial data and governance structures to foster investors’ trust and ensure financial market stability, the recent push for sustainability assurance stretches the auditors’ role much further, requiring them to guide numerous stakeholders in navigating long-term (climate) risks and opportunities. We identify three pitfalls and overpromises in applying contemporary auditing principles to provide sustainability assurance: the feasibility of existing methodologies, the tension between social aspirations and economic realities, and the illusion of pseudo-assurance. These findings offer guidance to auditors and underscore the further need to revisit the paradigmatic foundation of auditing.
AB - This essay delves into the evolving role of audit engagements in assuring sustainability reports. While traditional and contemporary auditing focus primarily on evaluating financial data and governance structures to foster investors’ trust and ensure financial market stability, the recent push for sustainability assurance stretches the auditors’ role much further, requiring them to guide numerous stakeholders in navigating long-term (climate) risks and opportunities. We identify three pitfalls and overpromises in applying contemporary auditing principles to provide sustainability assurance: the feasibility of existing methodologies, the tension between social aspirations and economic realities, and the illusion of pseudo-assurance. These findings offer guidance to auditors and underscore the further need to revisit the paradigmatic foundation of auditing.
KW - 512 Business and Management
UR - http://www.scopus.com/inward/record.url?scp=85183524169&partnerID=8YFLogxK
U2 - 10.1016/j.cosust.2023.101413
DO - 10.1016/j.cosust.2023.101413
M3 - Article
AN - SCOPUS:85183524169
SN - 1877-3435
VL - 67
JO - Current Opinion in Environmental Sustainability
JF - Current Opinion in Environmental Sustainability
M1 - 101413
ER -
