Choice of assurance provider and impact on quality of sustainability reporting: Evidence from sustainability reporting restatements

Kathleen A. Bentley‐Goode, Roger Simnett, Anne Thompson and Andrew J. Trotman

Accounting and Finance, 2025, vol. 65, issue 2, 2135-2172

Abstract: Using data from 32 countries, we identify the determinants of assurance provider type (accounting firm versus non‐accounting firm) and examine whether assurance provider type is associated with sustainability reporting quality. We measure sustainability reporting quality via changes in metrics made to sustainability reports from the prior year and restatements to correct errors in previously issued sustainability reports. We find that accounting firm assurers are positively associated with changes in metrics and restatements of prior period errors. We also examine the association between assurance and the application level of Global Reporting Initiative (GRI) guidelines used to prepare the sustainability report. Both accounting and non‐accounting firm providers are associated with higher GRI application levels and increases in GRI application level. Together, these results suggest that non‐accounting firms focus more on the quantity of disclosures, while accounting firms emphasise both the quality and quantity of disclosures in sustainability reports in accordance with the GRI Reporting Framework. Among accounting firm providers, we find little difference in sustainability reporting quality between accounting firm assurers that do versus do not audit the financial statements. The results of this study provide important insights for practitioners and standard‐setters as to the value of sustainability assurance and the relative benefits of engaging accounting versus non‐accounting assurance providers.

Date: 2025
References: Add references at CitEc
Citations:

Downloads: (external link)
https://doi.org/10.1111/acfi.13367

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:bla:acctfi:v:65:y:2025:i:2:p:2135-2172

Ordering information: This journal article can be ordered from
http://www.blackwell ... bs.asp?ref=0810-5391

Access Statistics for this article

Accounting and Finance is currently edited by Robert Faff

More articles in Accounting and Finance from Accounting and Finance Association of Australia and New Zealand Contact information at EDIRC.
Bibliographic data for series maintained by Wiley Content Delivery ().