Page 255 - AAA Integrated Workbook STUDENT S18-J19

Audit of social, environmental and integrated reporting

Need for integrated reports and

assurance

1.1 Integrated reporting

Many companies develop and maintain social, ethical and environmental policies.

Businesses are now expected to account for their impact on the social and natural
environment.

Integrated reporting is now common where performance measures and targets in
relation to corporate and social responsibility matters are included.

Performance in this area is often a factor affecting the decision of employees,
customers, and suppliers to engage with an organisation.

1.2 Key performance indicators (KPIs)

KPIs or business performance measures are financial and non-financial statistical
measures chosen to monitor strategic performance.

Monitoring of KPIs enables performance to be evaluated in comparison to
benchmark performance criteria or progress to be compared to the results of
competitors.

The accountant may be asked to suggest performance measures and sustainability
indicators for a company.

KPIs must be measurable:

 $ (e.g. $ spent on charitable activities)

 % (e.g. % of waste that is recycled)

 Number (e.g. number of serious accidents in the workplace)

 Hours/days (e.g. hours/days given to volunteering

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