Accountants and Sustainability Reporting

This study enhances the understanding of sustainability reporting by examining Icelandic auditors’ readiness to engage with existing sustainability frameworks. In collaboration with the Association of Certified Public Accountants in Iceland, a survey was conducted in 2022. The results highlighted a significant gap in knowledge and experience among Icelandic auditors regarding eight specific sustainability frameworks—which, notably, lacked any legal audit requirements at the time. In a similar survey in the United States focused on auditors’ familiarity with sustainability reporting within financial statements and their practical experience in this area came to comparable conclusions. To build on these findings, future research could utilize qualitative interviews to delve deeper into auditors’ perspectives and practices, particularly within audit teams. Exploring how audit firms develop expertise in sustainability reporting practices could also yield important insights into effective strategies. This study points to a critical need for improved education and training in sustainability reporting. The recent requirement for mandatory audits of sustainability reports—introduced after our survey—underscores the urgency of addressing these educational gaps.