16/11/2012 THE AUDITING OF SOCIAL ACCOUNTS SOME GENERAL CONSIDERATIONS INDEPENDENT AUDITING (with certification) OF SOCIAL ACCOUNTS • A DEBATE (CONSIDERING IN THIS CASE ONLY ITALY): • A) ONLY VOLUNTARY • B) COMPULSORY BY LAW 1
16/11/2012 ONLY VOLUNTARY1 • 1) TO AVOID BUSINESS OF CERTIFICATION AND “LABEL”’S COMPANIES • 2) NOT TO CURB COMPANIES’WORK IN AN ALREADY STAGNANT ECONOMY • 3) BETTER TO LEAVE TO THE MARKET THE VALUATION ONLY VOLUNTARY2 • 4) RISK TO CONFUSE THE SOCIAL ACCOUNT’S AUDITOR WITH AN “ETHICAL AUDITOR”: RISK OF INSTRUMENTALISM • 5) MULTIDIMENSIONALITY OF DATA AND INFORMATION MAKE MORE DIFFICULT THE AUDITING PROCESS THAN IN FINANCIAL ACCOUNTING 2
16/11/2012 COMPULSORY BY LAW1 • 1) TO GUARANTEE STAKEHOLDERS THAT SOCIAL ACCOUNTS ARE RELIABLE • 2) THE DISCOVER OF UNRELIABLE SELF- REFERENTIAL DOCUMENTS WOULD DIFFUSE A GENERAL MISTRUST ON EVERY SOCIAL ACCOUNT COMPULSORY BY LAW2 • 3) ASYMMETRIC INFORMATIONS CAN REDUCE A LOT THE ABILITY OF THE MARKET TO SELECT “GOOD” SOCIAL ACCOUNTS • 4) THE ABSENCE OF INDEPENDENTLY ASSURED DOCUMENTS COULD FAVOUR “RUMORS” AND UNJUSTIFIED VOICES AGAINST COMPANIES 3
16/11/2012 COMPULSORY BY LAW3 • 5) A COMPLETE FREEDOM AND VOLUNTARINESS BOTH IN DECIDING TO BE AUDITED AND IN CHOOSING AUDITORS CAN DIFFUSE A VERY IMPERFECT (AND PROBABLY NOT MUCH RELIABLE) MARKET OF ASSURANCE SOME CONCLUSION ISSUES • AN “AUTHORITY” INSTEAD OF AN AUDITOR? CAN THIS AUTORITY CONTROL EFFECTIVELY ALL? WHY DOES NOT EXIST AN AUTHORITY (BUT CERTIFICATION) IN FINANCIAL STATEMENT? WHAT ABOUT MULTIDIMENSIONALITY? • WHY DOES NOT EXIST MARKET SELECTION WITH FINANCIAL ACCOUNTS? • THERE ARE AUDITING PROBLEMS ALSO FOR FINANCIAL ACCOUNTS 4
16/11/2012 FINALITY OF AUDITING PROCESS (according to GBS and the author of these slides) • THE AUDITOR’S AIM IS NOT TO CERTIFY THE “GOODNESS” OF A COMPANY, BUT ONLY TO GUARANTEE THE STAKEHOLDERS THAT: • 1) THE COMPANY IS RESPECTING THE DECLARED STANDARD (GRI, GBS, AA1000,…) • 2) DATA AND INFORMATION ARE CONSISTENT WITH DECLARED PRINCIPLES • 3) THE DOCUMENT IS CONSISTENT WITH AVALIABLE DATA AND INFORMATION • 4) FINANCIAL STATEMENT IS RELIABLE AA1000S • AA1000S IS ESSENTIALLY AIMED TO “CLOSING THE CREDIBILITY GAP” BETWEEN DECLARATIONS AND FINALITIES OF PRACTISING STAKEHOLDER ENGAGEMENT AND ITS REAL CREDIBILITY • EVERY AUDITING AND ASSURANCE PROCESS HAS THE AIM OF INCREASING CREDIBILITY OF A DOCUMENT (ALSO IN THE FINANCIAL STATEMENT) • VERY DIFFUSED 5
16/11/2012 AA1000S • FUNDAMENTAL PRINCIPLE OF AA1000S IS • • INCLUSIVITY • THAT IS IN GENERAL BASIC PRINCIPLE FOR ALL AA1000 DOCUMENTS AA1000S ASSURANCE JUDGEMENT1 • IT MUST HOLD AT LEAST: • 1) DECLARATION OF USING AA1000S ASSURANCE STANDARD • 2) BASIC DESCRIPTION, PARTICULARLY ABOUT ASSURANCE LEVEL PURSUED 6
16/11/2012 AA1000S ASSURANCE JUDGEMENT2 • 3) ASSURANCE JUDGEMENT IN THE DOCUMENT • 4) ADDED COMMENTS 7
Recommend
More recommend
