Auditing and Assurance

Running head: AUDITING AND ASSURANCE
Auditing and Assurance
Name of the Student
Name of the University
Author’s Note

1AUDITING AND ASSURANCE
Table of Contents
Answer to Question 1: Report....................................................................................................2
Introduction............................................................................................................................3
Definition and Explanation of CSR and SR...........................................................................3
Explanation of Similarities and Differences between CSR and SR.......................................3
SR and Assurance’s Brief History.........................................................................................4
Companies with SR and Assurance.......................................................................................4
Future Developments in the Area of Sustainability Reporting and Assurance......................5
Frameworks, Guideline and Standard....................................................................................6
Assurance Guidelines and Procedures...................................................................................6
Conclusion..............................................................................................................................6
Answer to Question 2: Internal Memo.......................................................................................8
References................................................................................................................................11

2AUDITING AND ASSURANCE
Answer to Question 1: Report
Executive Summary
This report sheds light on different aspects of Corporate Social Responsibilities (CSR) and
Sustainability Reporting (SR) and assurance. This report defines both CSR and SR and
establishes the differences and similarities between these two. This report also shows the
companies that have adopted SR and assurance. This report shows the areas of future
developments in SR and assurance. Lastly, this report shows the guidelines, principles and
audit requirements for SR and assurance.

3AUDITING AND ASSURANCE
Introduction
There are certain factors that determine the success of the companies apart from the
financial aspects; and two of these factors are Corporate Social Responsibilities (CSR) and
Sustainability Repotting (SR) (Cheng, Ioannou & Serafeim, 2014). Both of these factors put
the obligation on the companies to take into consideration the effects of their business
operations on the environment, society and community. For this reason, it become necessary
for the companies to develop a report that will include the information of their financial and
non-financial performance (Cheng, Ioannou & Serafeim, 2014). At the same time, the
auditors are needed to provide their assurance on the sustainability and environmental
activities of the companies that has increased the roles of the auditors. This report takes an
honest attempt to discuss about several aspects of CSR and SR while considering the aspects
of audit assurance on the sustainability reports.
Definition and Explanation of CSR and SR
CSR – CSR is referred to the processes and procedures that the companies use for the
purpose of managing their different business operations for the creation of the overall
positive effect on the people of community and environment (Flammer, 2013). For this
reason, the aspects of CSR undertake problems in the fields of envirmental sustainability,
ethical business practice and others. It is the obligation on the companies to comply with the
principles and standards of CSR while conducting the business operations (Flammer, 2013).
SR – SR is referred to the system that provides the companies with the opportunity for
preparing a statement or report that includes the various environmental and social impacts
that their business operations have created on daily basis. At the same time, SR is considered
as a crucial mechanism due to the fact that it helps the companies to develop their value and
governance model for creating alignment between strategies and commitments (Ioannou &
Serafeim, 2017).
Explanation of Similarities and Differences between CSR and SR
Differences – The main aim of CSR is to make the companies in complying with necessary
regulations and the aim of SR is to ensure the development of business. Providing the
protection to the goodwill and reputation of the companies is the main driver of CSR and the
development of value and opportunity for the businesses is considered as the main driver of
SR. These are the main differences between these two (Hopkins, 2017).