Assurance on integrated reporting: A critical perspective

This research investigates how non-financial information is assured in the context of the Integrated Reporting <IR> Framework. In particular, we try to understand, through the lens of the legitimacy theory, whether the assurance process is a tool that enhances user trust. A study, based on semi-structured interviews with a group of experts, is presented. The respondents are practitioners, academics and investors directly involved in <IR> assurance debates. Consistent with legitimacy theory, most practitioners agree assurance adds value to the reporting process. However, other academics and investors are skeptical about whether assurance reduces agent-principle gaps. Their main concerns regard the difficulty in assuring qualitative information, and the discretion <IR> grants to management in the reporting process.