Research Report: Evaluating Integrated Reporting and Auditor Behavior

This research report investigates the role of integrated reporting (IR) in influencing the behavior of auditors. The study begins with an introduction outlining the significance of IR and its potential to enhance stakeholder understanding. It defines the research aim, objectives, and key research questions, focusing on the impact of IR on auditor conduct and strategies to improve IR adoption. The report then provides a comprehensive literature review, exploring the evolution of IR, its benefits, and its challenges. The review covers various perspectives on IR, including its impact on business performance, sustainability, and stakeholder engagement. The research methodology section outlines the approach, data collection methods, and sampling techniques employed. Finally, the report concludes with potential implications and recommendations for increasing the application of IR in auditor behavior, supported by a hypothesis testing framework.

[Date]
Running Head: RESEARCH
Integrated reporting
Student Id:

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Table of Contents
Chapter 1: Introduction..............................................................................................................2
Research aim and objectives..................................................................................................2
Research questions.................................................................................................................2
Significance of study..............................................................................................................3
Chapter 2: Literature review......................................................................................................3
Introduction............................................................................................................................3
Development of hypothesis....................................................................................................6
Chapter 3: Research methodology.............................................................................................9
Research Approach.................................................................................................................9
Data collection method...........................................................................................................9
Sampling method..................................................................................................................10
Conclusions emphasising potential implications.....................................................................11
References................................................................................................................................12

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Chapter 1: Introduction
In the current era, it is effective for the firm to gain their knowledge about the role of
integrating report for the changing the behavior of auditors. The auditor should comprehend
different methods, strategies, as it could be associated with integrated reporting. The best
knowledge about the integrated reporting could be imperative for the investigator as it
facilitates to sustain the business of the firm in the marketplace. The integrated reporting
could be effective for making the future decision in the context of organization success
(Linnenluecke, Birt, and Griffiths, 2015). The organization could attract a huge number of
stakeholders to invest in the company by practicing integrated reporting. The organization
could enhance their depth knowledge with respect to integrating the knowledge towards
research issues. The integrated reporting is most imperative in the current era for operating
the business and increase the success of the business. Moreover, the organization could use
this method and make the decision accordingly (Ahmed Haji, 2015).
Research aim and objectives
The primary aim of this study is to evaluate the role of integrated reporting in changing the
behavior of auditors. The following objectives will be accomplished by the researcher to
attain the objectives of the research issue:
 Critically evaluates integrate reporting and auditors behavior
 Examines the role of integrated reporting in changing the behavior of auditors
 Recommended strategies for increasing the application of integrated reporting in the
auditor's behavior
Research questions
The following research questions will be accomplished by the researcher to meet the aim of
the study:
 What do you understand by integrating reporting and auditors behavior

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 What is the role of integrated reporting in changing the behavior of auditors
 Which strategies for increasing the application of integrated reporting changing the
auditor's behavior
Significance of the study
This study will be effective for gaining the understanding of the researcher as well as the
reader towards integrating reporting and auditors behavior. It could be effective for gaining
the role of integrated reporting in changing the behavior of auditors. Moreover, it would also
support to comprehend different strategies for increasing the application of integrated
reporting and changing auditors behavior.
Chapter 2: Literature review
Introduction
The introduction section could be effective for collecting reliable information towards the
research matter. The capability of adopting rapidly modification in the business atmosphere
as well as anticipate the data needs of shareholders collaborates and investors could play an
imperative role in organization reporting. There is a need for developing the application of
best practices tool, which will aid in the decision-making procedure as well as a contribution
for effective use of the approach. It is examined that auditors use Integrated Reporting (IR)
framework that support to make a future decision and facilitates to improve the quality of
research outcome. It could force to the auditors for influencing the behavior to the
accomplishment of the organizational task in the least time and cost (Bouten and Hoozée,
2015).
As per the view of Oprisor (2015) providers of financial capital plays a significant role in
motivating the extensive implementation of integrated reporting, as well as, the investigation
into the extent of investor demand with respect to integrated reporting. IIRC enables the

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senior level investors for providing the discussion of knowledge and perception of investors
for integrated reporting as a source for decision associated data.
In oppose to this, Oliver Vesty and Brooks (2016) stated that integrated reporting is a
forward-looking single report that may holistically demonstrate the organization’s strategy,
governance, performance as well as, prospects in the method that reflects the social,
environmental, and commercial aspects within which it deals. It is a highly used global
reporting standard that focuses on organizing the business sustainability that enlarges on the
three-way bottom line. It is a procedure through which corporation organizes their social,
environmental, financial risk opportunities as well as obligations.
On the other side, Sundin and Brown (2017) evaluated that the structure are related to
integrated reporting was rolled out in the year of 2013 by international integrated reporting
council, companies, standard setters, non-governmental organizations as well as accounting
experts, a coalition of regulators, and investors. This structure facilitates the course of action
for producing the consolidated report regarding how companies can generate value in the
context of their strategy, performance, external atmosphere, and governance.
As per the view of Macias and Farfan-Lievano (2017) all relationships and resources are
involved by the company into different areas like intellectual, social and relationships,
financial, manufactured, as well as natural. These relationships and resources as capital
together with, demonstrates the business components and procedure possibly to affect this
capital as content elements. Moreover, there are different content components in the
integrated report such as business model, strategy and resource allocation, vision and
mission, performance, outlook, organizational overview and external atmosphere, and
business model. These guiding approaches govern the presentation and preparations related to
the integrated report in line to report the direction of the company. The structure offers to

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conceptualize the association between content elements and capitals (Knechel, and Salterio,
2016).
In opposed to this, Ahmed Haji and Anifowose (2016) evaluated that the fundamental for
generating the integrated report is getting together unrelated business practices as well as,
linking the sustainability strategy of the organization to the business approach. This can be
favored by significant governance structure for comprehensive view regarding practices
managed by proficient resources. Along with this, technology is practiced for assessing as
well as, combining the data when an integrated assurance structure should provide the
assurance of data.
According to Robertson and Samy (2015), an organization is starting to implement the
integrated reporting approach as well as, are implementing a new structured procedure for
modernizing the business practices in a co-operative way. By performing so, they can
embrace the concept related to combined thinking for the internal business management that
performs as a substance to link the operational silos as well as, implementing the common
emphasize on performance measures, business target, company strategies as well as, issues.
Auditor plays a significant role to provide the understanding of sharing and integrated
thinking by developing on its associations with the key team within the company.
In contrast to this, Melloni Stacchezzini and Lai (2016) stated that integrated thinking
supports endorsing the value-creating a procedure with respect to integrated reporting by
meaningful management regarding understanding and information. Although integrated
reporting is an emerging phase, companies are addressing the several benefits that it would
offer.
According to Adams (2017), integrated reporting is beneficial for auditors in terms of
declining reputational risks and enhanced stakeholder engagement. Along with this,
integrated reporting gain transparency improves the accountability, provides inclusiveness as

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well as more data that facilitates the stakeholder to higher transparency into finances as well
as materiality related to the company.
In opposed to this, Gibassier Rodrigue and Arjaliès (2018) evaluated that integrated reporting
is beneficial for improving business performance as well as, sustainability. Along with this,
integrated reporting facilitates the intelligence regarding the implementation of socio-
economic objectives of the company as well as, performance gauge. It leads to making better
decision making regarding business model innovation and revenue growth.
As per the view of Gunarathne and Senaratne (2017), integrated reporting is beneficial for
conformance of external and internal needs. Along with this, it makes competent to the
company to be compliant regarding regulations as well as, significantly organize the
regulatory uncertainties. It improves the communication as well as, resilience by
comprehending the chances as well as risk. However, the integrated reporting creates the
additional challenges related to making sure the accuracy for measuring and process practiced
for capturing the information essential for reporting, the requirement for comprehending the
several factors entailed and several interdependencies as well as connections.
In opposed to this, Eccles Krzus and Ribot (2015) evaluated that controls can be significant
and procedures are in place for measuring the right things in place. This assurance is essential
for developing credibility regarding the sustainability of the company. It gains the
accountability of internal audit for taking a strategic role in preparation for an organization,
execution, and journey with respect to mature integrated reporting procedure. Moreover,
internal audit is a broad presence across the company, understanding related to the source of
facts, knowledge of uncertainty and controls create its appropriate activities for this intention.
As per the view of Romolini Fissi and Gori (2017) auditor acts as an independent assurance
facilitator, helps the integrity as well as, visibility demonstrating the integrated reporting,
providing the reassurance to the shareholder on the sustainability of the business. The

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assurance role could be attained by different kinds of engagement like assurance related to
several non-financial and financial functions, risk management, governance evaluation as
well as, control procedures backing the key goal of integrated reporting.
Development of hypothesis
The hypothesis development is imperative for the researcher as it supports to prove the
collected data and conclude the whole study. It could also be effective for evaluating the
collected research issue matter. There are certain steps that are considered by the investigator
to examine the data and make a decision effectively as it could be associated with the
development of research questions, hypothesis development, and develop the overall
conclusion in the favor of the research matter (Fasan and Mio, 2017). The researcher will
deeply evaluate collected data by entailing certain steps to make a reliable decision. It could
be effective in getting a reliable outcome.
The following hypothesis will be considered by the investigator to test the collected data and
reach a reliable conclusion:
H0: There is a positive relationship between the voluntary assurance of sustainability reports
and audit behavior
H1: There is no relationship between voluntary assurance of sustainability reports and audit
behavior
(Source: Rezaee, 2016).
Testing the hypothesis

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The primary method of this study is to evaluate the collected data by entailing collected data
and make a decision in an effective manner. The investigator uses deductive theory for
evaluating the data prove hypothesis accordingly. This method is leading to the investigator
to collect reliable information towards the research issue. The researcher will be capable to
evaluate the data and research matter. The researcher has set a phenomenon as well as either
makes an effective theory to examine and interoperate the data by choosing the reliable
theory to work with it (Dumay, et al., 2017). It is also examined that investigator could
consider certain elements like theory construction revision, hypothesis derivation, hypothesis
testing, and theory evaluation. These steps will be effective for the investigator as it leads to
evaluate the data and support to make a decision effectively. It could be effective for the
attainment of the organizational task. The process of prediction could be known as a
hypothesis. Through this process, the researcher will evaluate the relationship between
integrated reporting and auditor’s behavior (Rezaee, 2016).
(Source: Rezaee, 2016).
The investigators could conduct empirical research to evaluate the hypothesis test. It is
examined that this theory is used to evaluate outcomes and make a decision accordingly. This
procedure is generally conceptualized like a cycle as could be effective for conducting the
study and test the hypothesis for reaching the reliable conclusion. The deductive approach is

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the theory that is practiced for creating the model and theoretically evaluates the data and
make a decision effectively (Rezaee, 2016).
It is also examined that the investigators could consider two different tools for evaluating the
theory and make a decision in favor of research matter. Initially, the researcher would use
certain research question in the oppose of research matter and interoperate the data
accordingly. This format could be effective in evaluating the research questions for making
the decision accordingly. The second method is to evaluate the hypothesis and examine data
effectively. It could also effective for testing the hypothesis for re-evaluating approaches.
This format could be effective for testing the hypothesis and make a decision effectively. The
application of this approach is to examine the policy and guideline for evaluating the data and
make a decision in favor of the research issue. It could also be effective for leading the work
legitimacy. In addition, it is evaluated that human behaviors verities could develop many
approaches together with the method. Practicing the established approaches will support to
break new areas as investigators not limiting you from developing their own ideas (Simnett
and Huggins, 2015).
Chapter 3: Research methodology
The research methodology could facilitate the research scholar to get feasible information
about research matter. The research scholar could consider different tools and techniques in
the research methodologies named data collection method, sampling method, and variables,
and different models of hypothesis. It could lead to making a favorable decision in the
context of the current matter (Al Hosban, 2015).
Research Approach
The research approach is significant in collecting reliable information about the research
matter. The research approach could consider two kinds of methods as it could consider two
methods named inductive and deductive approach. The inductive approach is effective in

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collecting reliable theoretical information in the context of the research issue. There are
certain sources considered by the researcher to meet the aim and objectives of the research
issue. The deductive approach is another imperative tool of the research that facilitates to get
feasible data in the context off the current matter. For conducting this study, the researcher
will use the deductive approach as it facilitates to accept or reject the research hypothesis on
behalf of the research issue. The deductive approach will be more effective as compared to
the inductive approach as it could lead to obtaining the feasible result in the context of the
current matter (Axelsen, Green, and Ridley, 2017).
Data collection method
The data collection method is effective for collecting feasible information about the research
natter. The data collection tool could consider many methods that are considered by the
researcher named primary and secondary data collection method. For conducting this study,
the researcher has focused on both primary as well as secondary data collection method
(Rivera‐Arrubla, and Zorio‐Grima, 2016). It could also be effective in meeting the aim and
objectives of the research issue. It is stated that primary data will be collected by entailing
many sources many methods as it could be known as a survey through questionnaire method,
which will lead to obtaining direct responses from the research candidates about the research
issue. It could also increase the reliability of the obtained research outcome (Rivera-Arrubla,
Zorio-Grima, and García-Benau, 2017). The secondary data will be collected by entailing
many sources named as books, journals, articles, magazines, online, and offline sources. It
will be effective in the attainment of the research task. However, at the same time, it is
evaluated that the data collection method could be costly as compared to other research
activity. Thus, it is founded that the data collection tool is effecting in operating business in
one direction and make the decision accordingly.

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Sampling method
Sampling is a tool that assists to collect reliable information towards the research issue. There
are certain methods that are considered in the sampling, as it could be known as probability
and non-probability sampling tool. The sampling tool is practiced to select a suitable sample
size and conduct study in an appropriate manner (Atkins, Solomon, Norton, and Joseph,
2015). This method could facilitate to increase the feasibility of the research outcome. The
non-probability sampling enables the investigator to select the participants on the basis of
age, gender, region, and gather the information towards the research issue (Humphrey,
O’Dwyer, and Unerman, 2017). It creates biases in the study as it declines the possibilities of
getting a higher profit. For conducting this study, the researcher will practice the probability-
sampling tool as it facilitates to randomly select the research participants and conduct study
effectively. It could be effective in the attainment of the research task (Zager, Malis, and
Novak, 2016). Moreover, it is evaluated that the researcher will use 50 employees for
conducting the interview method, as it facilitates to get the data in favor of the research
matter. Moreover, the researcher will use different tools as well as techniques to make the
decision in favor of the study concern. It is examined that probability sampling is more
effective as compared to the non-probability sampling method. This method could be
imperative to evaluate the relationship between voluntary assurance of sustainability reports
and audit pricing behavior. In addition, it is also examined that the researcher will use the
probability sampling method for evaluating the different variables and reach a reliable
conclusion. This method is effective to examine the hypothesis and make a decision
accordingly (Ditillo, and Lisi, 2016).
Conclusions emphasizing potential implications
With respect to the above discussion, it can be concluded that Integrated reporting is effective
for the auditors as it enables the organization to comprehend challenges and opportunities as