Question

Do you believe the accounting profession is equipped to deal with the issues that need to be considered in an Integrated Report? Discuss, and suggest whether you believe this has implications for training accountants?

Answer 1

Not exactly, but as Accountants have a major role to play, if they are willing to do so. At present the ‘natural’ role for the accountancy profession has been seen to be in financial reporting. However, the training of an accountant is not in numbers but in information, the data that underpins an organisation. Thus integrated reporting is the domain of the accountant more than other professions. It may need broader thinking and the use of multidisciplinary teams with specific skills and experience, but the judgment and analytical skills inherent in the accountancy profession are the key. Integrated reporting requires integrated auditing. There are a number of barriers to overcome here. Better standards are needed for non-financial measurement and reporting, auditors need to develop the capability to audit non-financial information, and there are also liability concerns.