Auditing and Assurance in Australia

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

1AUDITING AND ASSURANCE IN AUSTRALIA
Table of Contents
Question 1: The Expanding Role of Auditor.................................................................2
Introduction...............................................................................................................3
Corporate Social Responsibility (CSR) and Sustainability Reporting (SR)..............3
Similarities and Differences between CSR and SR..................................................3
Brief History on SR and Assurance..........................................................................3
Companies undertake SR.........................................................................................4
Further Development in the Areas of SR and Assurance........................................5
Frameworks Guidelines and Standards....................................................................5
Assurance Guidelines and Procedures for Auditors.................................................6
Conclusion................................................................................................................6
Question 2: Auditor Independence...............................................................................6
Internal Memo...........................................................................................................6
References.................................................................................................................10

2AUDITING AND ASSURANCE IN AUSTRALIA
Question 1: The Expanding Role of Auditor
Executive Summary
This report shows that both Corporate Social Responsibility (CSR) and Sustainability
Reporting (SR) are essential for the companies in disclosing information on their
sustainability performance. The main differences and similarities between CSR and
SR are discussed in this report. This study focuses on four companies that have
adopted SR while providing the necessary assurance on them. This report also
shows the regulations and guidelines for SR for the companies.

3AUDITING AND ASSURANCE IN AUSTRALIA
Introduction
In today’s business world, Corporate Social Responsibility (CSR) and
Sustainability Reporting (SR) has become crucial success factors for the companies
due to the increased awareness of the customers about the sustainability and
environmental issues (Cheng, Ioannou & Serafeim, 2014). At the same time, SR has
a connection with audit and assurance and it has expanded the role of the auditors.
The main aim of this report is to discussion about the current state of CSR, SR and
assurance. The report also sheds light on the expanded role of the auditors.
Corporate Social Responsibility (CSR) and Sustainability Reporting (SR)
CSR – CSR is considered as the mechanism of how firms manage their various
business operations for producing an overall positive impact on the society,
community and environment. CSR takes into consideration issues in the areas of
sustainability, social impact and ethics (Tai & Chuang, 2014).
SR – SR is also considered as a mechanism where companies develop a report
about their social, economic and environmental impacts caused by their day-to-day
business operations. SR also assists in presenting a firm’s governance and value
model for demonstrating the link between strategy and commitment (Ioannou &
Serafeim, 2017).
Similarities and Differences between CSR and SR
Similarities are there between CRR and SR as both are beneficial as well as
highly essential for the firms. Both these concepts measure the impact of day-to-day
operations of the businesses on society, community and environment. This is the
major similarity (Junior, Best & Cotter, 2014).
However, differences are also there between these two as CSR is related to
compliance where SR is about the businesses. The main driver of CSR is the need
for protecting the firm’s reputation where the driver behind SR is creation of value
and opportunity for the businesses (Deng, Kang & Low, 2013).
Brief History on SR and Assurance
SR works as a vital tool for the companies for providing transparent
community with the key stakeholders about the social and environmental
performance of the companies. Due to the high relevancy of SR, certain
stakeholders started to demand transparency and raised question about the integrity