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Assurance Practices in Colombia’s Non-Financial Sectors: Enhancing Sustainability Report Reliability

Author

Listed:
  • Fanery Andrea Hoyos Giraldo

    (Faculty of Business Administration, Universidad Autónoma de Occidente, Santiago de Cali 760030, Colombia)

  • María de los Ángeles Baeza Muñoz

    (Faculty of Business and Economic Sciences, Universidad de Granada, 18071 Granada, Spain)

  • Edinson Delgado-Martínez

    (Faculty of Business Administration, Universidad Autónoma de Occidente, Santiago de Cali 760030, Colombia)

Abstract

This research enhances the reliability of sustainability reports in Colombia’s mining–hydrocarbons, construction, and manufacturing sectors. Amid growing demands for corporate transparency, this study evaluates assurance practices and proposes a model for measuring sustainability report reliability. Using bootstrapping regression, this study provides credible coefficient estimates without assuming a normal distribution. Key findings show that SDG application, assurance scope, and auditing firm consistency significantly influence report reliability, affirmed by 95% confidence intervals. This study’s pragmatic approach suggests best-case and worst-case scenarios for policymakers and companies to optimize report reliability. Furthermore, the proposed model paves the way for future research, with the International Standard on Sustainability Assurance (ISSA) 5000 by the International Auditing and Assurance Board (IAASB), potentially acting as a catalyst for mandatory sustainability reporting in Latin America. This proposed standard promises to enhance sustainability assurance practices. This research contributes to academic discourse on sustainability assurance and guides improvements in corporate reporting transparency and accountability. Future research should expand this model to other sectors and regions, validating its applicability and exploring broader temporal scopes to strengthen its empirical foundations.

Suggested Citation

  • Fanery Andrea Hoyos Giraldo & María de los Ángeles Baeza Muñoz & Edinson Delgado-Martínez, 2024. "Assurance Practices in Colombia’s Non-Financial Sectors: Enhancing Sustainability Report Reliability," Sustainability, MDPI, vol. 16(23), pages 1-24, November.
    • Handle: RePEc:gam:jsusta:v:16:y:2024:i:23:p:10371-:d:1530590
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    References listed on IDEAS

    as
    1. Muhammad Bilal Farooq & Charl de Villiers, 2019. "How sustainability assurance engagement scopes are determined, and its impact on capture and credibility enhancement," Accounting, Auditing & Accountability Journal, Emerald Group Publishing Limited, vol. 33(2), pages 417-445, December.
    2. Warren Maroun, 2020. "A Conceptual Model for Understanding Corporate Social Responsibility Assurance Practice," Journal of Business Ethics, Springer, vol. 161(1), pages 187-209, January.
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    5. Warren Maroun & Andre Prinsloo, 2020. "Drivers of combined assurance in a sustainable development context: Evidence from integrated reports," Business Strategy and the Environment, Wiley Blackwell, vol. 29(8), pages 3702-3719, December.
    6. Charika Channuntapipat & Anna Samsonova-Taddei & Stuart Turley, 2019. "Exploring diversity in sustainability assurance practice," Accounting, Auditing & Accountability Journal, Emerald Group Publishing Limited, vol. 32(2), pages 556-580, March.
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    9. Estibaliz Goicoechea & Fernando Gómez-Bezares & José Vicente Ugarte, 2019. "Integrated Reporting Assurance: Perceptions of Auditors and Users in Spain," Sustainability, MDPI, vol. 11(3), pages 1-19, January.
    Full references (including those not matched with items on IDEAS)

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