ESG and audit : evidence from Portugal

• Autor(a) principal: Albuquerque, Bernardo Henriques
• Data de Publicação: 2023
• Tipo de documento: Dissertação
• Idioma: eng
• Título da fonte: Repositório Científico de Acesso Aberto de Portugal (Repositórios Cientìficos)
• Texto Completo: http://hdl.handle.net/10400.14/43559
• topic: ESG; Audit; IFRS S1; IFRS S2; Audit challenges; Auditoria; Desafios à auditoria; Domínio/Área Científica::Ciências Sociais::Economia e Gestão

This study explores auditing in the context of Environmental, Social and Governance (ESG) factors, emphasizing its crucial role, risks, benefits, and the main challenges that the new regulatory framework (IFRS S1 and IFRS S2) will transport to the audit profession. Employing a survey methodology, the research seeks to identify trends and patterns in responses from participants, encompassing both Certified Public Accountant auditors from Portugal, who shared insights on challenges posed by the new regulation and the knowledge required by auditors, as well as non-auditors who provided perspectives on the benefits of integrating ESG considerations, into the audit process. In total, we collected 68 responses, comprising 45 auditors and 23 non auditors. The results demonstrated that most of participants considered that integration of ESG disclosures in audit process beneficial, since it will enhance the transparency of the information, the investors’ confidence, and a positive brand reputation. In terms of the primary challenges associated with IFRS S1 and IFRS S2, the most prevalent concerns include the reliability and consistency of ESG data, the complexity of assessing the materiality of ESG factors, and sustainability evaluation of a company's entire supply chain. This challenge becomes particularly pronounced when the supply chain operates externally of the audited firm.