Assurance on Integrated Reporting? The global debate kicks off in South Africa

Leading experts will kick off the debate on assurance and Integrated Reporting <IR> in Johannesburg on Wednesday 20 August, at the first of a series of forums around the world designed to discuss whether assurance on <IR> is necessary and consider its benefits and challenges.

Participants at the event, which is hosted by the South African Institute of Directors (IoD) and the Independent Regulatory Board for Auditors (IRBA), will discuss the issues raised in a new paper, ‘Assurance on <IR>: an introduction to the discussion‘ released last month by the International Integrated Reporting Council (IIRC). The expert panel includes Linda De Beer, Independent Director and Corporate Governance advisor; Jayne Mammat, Partner, PwC; Jan Van Schalkwyk, Corporate Executive, Auditor General of South Africa; and Paul Druckman, CEO, IIRC.

The paper is expected to help guide and provide impetus to the debate. It was released alongside a more detailed document, ‘Assurance on <IR>: an exploration of issues‘. Together, the papers discuss issues such as: the nature of assurance and how different mechanisms contribute to credibility and trust; methodology issues dealing with, for example, future-oriented information, soft narrative and completeness of a report; and materiality, the reporting boundary and connectivity for assurance purposes.

An Assurance Technical Collaboration Group led by The Independent Regulatory Board for Auditors (South Africa) and made up of experts from across the world, prepared the detailed paper and helped ensure it reflects the debate currently underway in the assurance space.

Bernard Agulhas, CEO, IRBA said, “Credibility and trust of corporate reporting is the corner-stone of the work of regulators and auditing standard setters.  As corporate reporting evolves to embrace more fully the relevant aspects of value creation, and the interaction between the capitals, the needs for assurance are ever present.  The assurance on Integrated Reporting <IR> is thus an area in which we have committed resources to survey the landscape and participate in offering solutions.  As a South African regulator and standard setter, in an environment where <IR> is accelerating, we look forward to bringing our experience in setting high quality standards to the integrated report.”

Paul Druckman, CEO, IIRC said, “The IIRC does not aspire to become a standard setter in assurance. Integrated reports need to provide ‘investment grade’ information and many think that assurance may be a way of ensuring this. These papers are already providing a catalyst for those with an interest in ensuring credibility and trust in <IR>, to initiate and get involved in forums around the world over the next few months in order to debate this issue. It’s great to be getting the debate started in South Africa, a country that really is a leading the way in the adoption of Integrated Reporting.”

The IIRC is calling on all those with an interest in building this credibility and trust to get involved in the debate. Other discussion forums are already being organised in Australia, Belgium, Brazil, Japan, Malaysia, Singapore and the US, by interested parties including accountancy bodies and firms.

For more information please visit iirc.helpfulclients.com/assurance