英语论文网

y).

A very useful distinction between assurance and non-assurance that an assurer does not only play the role of provider; he or she also acts as an advisor and a reporter. Being a provider means providing on the preparation process for the audited information. The auditor reports in the form of an assurance report, which may contain one or more conclusions. The level of assurance can be limited or reasonable, and this report could be for internal or external use. The Code of Ethics, the International Framework and ISAE 3000 (Assurance Engagements other than Audits or Reviews of Historical Financial Information) can be applied here.

As an advisor, an auditor or assurer gives advice on the development and implementation of a client company's systems, such as an information system. There are no specific standards for the auditor in relevance to providing advice; only the Code of Ethics of IFAC (International Federation of Accountants) applies here. Taking the role of reporters, an assurer reports on the factual findings on the preparation process for the information, without giving any opinion or assurance. Users of the auditor's report need to assess the procedures and findings reported by the auditor based on their own judgement and then draw their own conclusions from the auditor's work. The Code of Ethics and ISRS 4400 (Engagements to Perform Agreed-upon Procedures Regarding Financial Information) are applied here.

A company that wants to provide relevant and reliable non-financial information to its users needs to have a good non-financial information system. According to NIVRA in Amsterdam (2010), an auditor can be appointed by the preparer of the non-financial information to enhance the degree of confidence of the intended users in the non-financial information. An auditor fulfils the role of the independent professional who examines the quality of the reported information by the preparer on the behalf of the users.

Independent external assurance is the key way of expanding the credibility and effectiveness of their reporting, and ultimately their performance. Involvement of the intended users in the engagement of the auditor is very important to avoid expectation gap. This is to ensure that both the preparer and users acknowledge the role of auditor and minimize the misunderstanding between them. An auditor plays an important role to build up the degree of confidence of users towards the quality of the information, so that the users can use this information to make their informed decisions.

According to Coram, Monroe and Woodliff (2005), an assurer or auditor should provide credibility on the information to investors and creditors to ensure that independently-audited information can minimise any information asymmetry and decreases any uncertainties. This would increase the investors' reliance on the voluntary disclosure of non-financial information when they are provided with the information by the management, since investors, being the principal, may not trust the non-financial information prepared by the managerial directors, who are their agent. This is in accordance to the agency theory that we have learned in the lecture session.

Morever, an assurer should enhance and provide assurance on the accuracy, completeness and reliability placed on its sustainability report to ensure that the stakeholder's concerns about the credibility of susta