Exploring the Rationale for Assuring Integrated Reports and its Impacts on Assurance Practices: A Proposed Conceptual Model

Abstract

here is a growing demand for external assurance on integrated reporting despite the challenges involved in the assurance process. However, the rationale for obtaining external assurance on integrated reports is mostly unknown, and how it leads to organisational changes is not sufficiently explored. Thus, this study offers a conceptual model to explore the rationale behind obtaining external assurance on integrated reporting, its impacts on internal assurance practices, justifications for modifications made to the internal assurance practices, and its implications on external assurance practices. This conceptual model, grounded on the framing and institutional theories, postulates that companies tend to assure their integrated reports externally as a response to various isomorphic pressures. The external assurance of an integrated report may warrant modifications to companies' current internal assurance practices. Companies make these modifications based on different rationales, which can also have implications on external assurance practices. This paper also discusses how researchers and practitioners can use this model.