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Killexams : CIMA Management information source - BingNews https://killexams.com/pass4sure/exam-detail/CIMAPRA19-P03-1-ENG Search results Killexams : CIMA Management information source - BingNews https://killexams.com/pass4sure/exam-detail/CIMAPRA19-P03-1-ENG https://killexams.com/exam_list/CIMA Killexams : American Institute of Certified Public Accountants (AICPA)

What Is the American Institute of Certified Public Accountants (AICPA)?

The American Institute of Certified Public Accountants (AICPA) is a non-profit professional organization representing certified public accountants (CPA) in the United States.

Key Takeaways

  • The American Institute of Certified Public Accountants (AICPA) is a non-profit professional organization representing certified public accountants (CPA) in the United States.
  • The AICPA was founded in 1887, under the name American Association of Public Accountants.
  • The organization is integral to rule-making and standard-setting in the CPA profession and serves as an advocate for legislative bodies and public interest groups.

Understanding the American Institute of Certified Public Accountants (AICPA)

The American Institute of Certified Public Accountants (AICPA) was founded in 1887, under the name American Association of Public Accountants, to ensure that accountancy gained respect as a profession and was practiced by ethical, competent professionals. The AICPA exists to provide its 421,000 members in 130 countries with the resources, information, and leadership to provide CPA services in the highest professional manner.

From its earliest iteration in 1887 to as late as the 1970s, the AICPA was the only body setting generally accepted technical and professional standards for CPAs in a number of areas. In the 1970s, the Financial Accounting Standards Board (FASB) took over responsibility for setting generally accepted accounting principles (GAAPs).

However, the AICPA still retains its standards-setting responsibilities in such areas as professional ethics, business valuation, financial statement auditing, attest services, and CPA firm quality control. The AICPA is integral to rule-making in the CPA profession and serves as an advocate for legislative bodies and public interest groups.

421,000

The number of current AICPA members.

Members of the AICPA consist of professionals in business and industry, public practice, government, and education. Offices are located in New York City; Washington, D.C; Durham, NC; and Ewing, NJ.

History of the American Institute of Certified Public Accountants (AICPA)

Although the AICPA obtained its current appellation in 1957, the organization traces its history back through several iterations, beginning when the American Association of Public Accountants (AAPA) opened in 1887.

Subsequent iterations included the Institute of Public Accountants in 1916 and the American Institute of Accountants in 1917. The American Society of Public Accountants, created in 1921, was later merged into the American Institute of Accountants in 1936, at which time, the Institute chose to restrict future membership to CPAs.

More recently, in 2012, the AICPA partnered with the Chartered Institute of Management Accountants (CIMA) to create the Chartered Global Management Accountant (CGMA) designation. The two organizations then went on to create the Global Management Accounting Principles (GMAPs) in 2014, in order to formalize best practices in the field of management accounting.

In 2017, the two organizations formed a third international association, the Association of International Certified Professional Accountants, which seeks to strengthen the accounting profession by combining the skills and knowledge of both public and management accountants. Despite all these developments, the AICPA and the CIMA still continue to provide all of their previous benefits to existing members.

New Auditing Standards

In response to auditors across the public accounting industry consistently failing to apply a healthy amount of skepticism to clients’ statements, the AICPA proposed a new standard with the goal of promoting skepticism as part of general auditing standards.

In 2020, Statement on Auditing Standards No. 143 was issued to supersede SAS no. 122, amending section 540, auditing accounting estimates, including fair value accounting estimates, and related disclosures, as well as various other sections in AICPA Professional Standards.

 Thu, 28 Jul 2022 12:00:00 -0500 en text/html https://www.investopedia.com/terms/a/american-institute-of-certified-public-accountants.asp Killexams : AICPA & CIMA comment on ISSB drafts of sustainability disclosures

The Association of International Certified Professional Accountants, representing AICPA & CIMA, Tuesday showed support in comment letters for a pair of exposure drafts developed by the International Sustainability Standards Board (ISSB): IFRS S1: General Requirements for Disclosure of Sustainability-Related Financial Information and IFRS S2: Climate-Related Disclosures.

The IFRS Foundation announced the formation of the ISSB in November 2021 to take on the development of global standards for disclosing sustainability information.

The two draft standards were the first from the ISSB.

The comment letter on IFRS S1 and IFRS S2 applauds the ISSB's objectives and calls the exposure drafts "consistent with how preparers already organize financial statement information."

While generally praising both drafts, AICPA & CIMA provided feedback and suggestions on each.

Highlights of the comments on IFRS S1

Scope: AICPA & CIMA commented that sustainability standards should be demanding yet achievable, stating: "We support the scope of the standards being akin to the entity targeted for financial statement disclosures by the IASB or jurisdictional equivalents. … We believe this will enable a more comprehensive understanding of the enterprise value of the reporting entity, as well as enabling connectivity between sustainability and traditional financial information." The letter lauded the draft for taking value-chain reporting into account.

Materiality: The letter acknowledged that IFRS S1 defines material information in alignment with financial reporting standards but noted there may be a need for more specific information on how materiality of sustainability information is to be dealt with to guard against obscuring the usefulness of the disclosures.

Definitions: The letter asked the ISSB to consider, along with its definition of "enterprise value," including "a non-exhaustive list of indicative risks and opportunities that a preparer may wish to include" as well as more guidance about what "significant" means to better inform what should be reported. The letter also expressed concerns with the ability of companies to quantify future impacts in a way that would be auditable and suggested that the ISSB consider developing further guidance on the timelines and information for disclosure.

Risk management: The letter noted that it is crucial that organizations have sound risk management procedures in place to monitor, assess, and act on any risks as they arise because of the difficulties and encouraged the ISSB to consider promoting the use of the Committee of Sponsoring Organizations of the Treadway Commission (COSO) framework or a similar framework to guide companies on how to report risk. COSO is a joint initiative of private-sector organizations, including the AICPA, that develops thought leadership to enhance internal control, risk management, governance, and fraud deterrence. The letter also mentioned the CGMA Business Model Framework as a possible tool for identifying risks and opportunities.

Global standard setting: The letter expressed AICPA & CIMA's support of the alignment with existing frameworks, such as the recommendations from the Task Force on Climate-Related Financial Disclosures (TCFD), to create a global sustainability standard that will enable production of "consistent, comparable, reliable and therefore decision-useful information" and recommended that the concept of planetary boundaries help frame the structure of sustainability disclosures.

Assurance and audit: The letter advocated for sustainability assurance provided by audit firms as a means of enhancing the reliability of sustainability disclosures.

Connected reporting: The letter said it is imperative that the ISSB adopt a "robust" reporting framework that connects traditional financial disclosures and sustainability-related financial disclosures, mentioning the International Integrated Reporting Framework as a viable option.

The role of management accountancy in sustainability reporting: The letter advocated for the role that management accountants can play by using their unique skills and competencies in organizing and disseminating sustainability information and making the business case for companies to act on the information.

Highlights of the comments on IFRS S2

After welcoming the ISSB's and the IFRS Foundation's work developing the climate-related disclosure exposure draft, the letter commented on six of the remaining 16 questions posed in the request for comment.

Identification of climate-related risks and opportunities: As in the comments on IFRS S1, AICPA & CIMA asked the ISSB to consider going further in defining differences between the terms "significant" and "material" as they pertain to reporting short-, medium-, and long-term risks (time frames, the letter said, for which preparers could also benefit from more clarity).

Current and anticipated effects: The letter suggested a three-year global trial period for the reporting of the impact of future events to enable organizations to develop best practices in adhering to this standard.

Risk management: As in the comments on IFRS S1, AICPA & CIMA asked that the ISSB consider using the COSO framework.

Cross-industry metric categories and greenhouse gas emissions: The letter noted the challenge companies presently face when reporting indirect emissions from their value chains, supporting exemptions in appropriate situations and recognition of good-faith efforts to comply with sustainability standards.

Global baseline: The letter stressed the importance of global standards for reporting climate information and expressed concerns about the possibility of the ISSB and the European Financial Reporting Advisory Group (EFRAG) creating competing standards: "It is important that a global sustainability taxonomy is consistent across jurisdictions."

Other comments: While acknowledging the building-blocks approach to creating sustainability reporting standards, the letter warned that "in the short term it may promote siloed sustainability thinking" in a world facing "a three-fold crisis of a climate emergency, dramatic nature loss, and rising social inequality" and emphasized the importance of the alternative systems thinking approach to this initiative.

— To comment on this article or to suggest an idea for another article, contact Bryan Strickland at Bryan.Strickland@aicpa-cima.com.

 Wed, 27 Jul 2022 10:15:00 -0500 text/html https://www.journalofaccountancy.com/news/2022/jul/aicpa-cima-comment-issb-drafts-sustainability-disclosures.html Killexams : More Companies Obtaining Independent Assurance on Sustainability Data, According to Global Study by IFAC, AICPA & CIMA

NEW YORK--(BUSINESS WIRE)--Aug 1, 2022--

The number of global companies obtaining independent assurance on their environmental, social and governance (ESG) information increased from 51% to 58% in 2020, compared to the previous year, according to new data from the International Federation of Accountants (IFAC), American Institute of CPAs (AICPA) and Chartered Institute of Management Accountants (CIMA), the latter two of which represent the unified voice of the Association of International Certified Professional Accountants.

The 2020 information released today is an update to the accounting bodies’ inaugural study last year that examined global trends in both sustainability-related reporting and its assurance. This latest update offers the first benchmark of progress relative to the original data. A follow-up study that incorporates 2021 information is expected to be released at a later date.

When it comes to ESG assurance, 82% of engagements were limited in scope in 2020, essentially the same as in 2019 (83%). Some 61% of assurance engagements were performed by audit firms on a global basis, a slight decline from the previous year (63%). Jurisdictions with some of the highest rates of assurance performed by professional accountants include Australia, France, Italy, Germany and Spain. In other countries, including South Korea, the United Kingdom and the United States, most assurance engagements are conducted by service providers outside of the accountancy profession. Professional accountants have high professional standards, including independence, and are subject to regulatory oversight, which is critical in this space.

On the reporting side, the study found 92% of global companies provided some ESG data to investors, either through integrated, annual or standalone reports. The use of, or reference to, Sustainability Accounting Standards Board (SASB) standards more than doubled in 2020. This is important because new disclosure proposals from the International Sustainability Standards Board (ISSB) include and build upon SASB standards. (SASB’s parent organization, the Value Reporting Foundation, will consolidate into the IFRS Foundation on Aug. 1, 2022, to support the work of the ISSB.)

“It’s encouraging to see continued high levels of reporting on sustainability information and an overall increase in assurance globally,” said IFAC CEO Kevin Dancey. “But our research tells us that 80% of companies are using multiple frameworks or standards, which results in data that is not consistent, comparable or decision-useful for investors, stakeholders or society at large. Sustainability reporting and assurance will only reach its full potential when it is based on a harmonized global system led by the International Sustainability Standards Board’s comprehensive baseline of disclosure.”

The 2020 study data also shows 89% of companies presented at least some information in each of four categories: greenhouse gasses, other environmental factors, social and governance. Yet only 43% provided assurance for all four categories. The most common area for independent assurance was greenhouse gases (95%).

Seventy percent of global companies that engaged a professional accounting firm to perform the ESG assurance engagement chose the firm that audits their financial statements.

“High-quality reporting requires high-quality assurance,” said Susan S. Coffey, CPA, CGMA, AICPA & CIMA’s CEO of public accounting. “Auditors already have a holistic view of a company’s risk profile, structure and processes, so it makes sense for that firm to also engage in ESG assurance. Professionally qualified and licensed accountants have the requisite expertise, objectivity, integrity and commitment to professional standards that are essential for instilling trust in ESG reporting.”

About the Study

IFAC and AICPA & CIMA partnered with Audit Analytics to understand the state of play involving environmental, social, and governance (ESG) reporting and assurance practices on a global basis. The inaugural version of the study was published last year. This latest update reviewed data from 1,400 global companies from the G20 nations plus Hong Kong S.A.R., China and Singapore. The full methodology is referenced within the study.

About IFAC

IFAC is the global organization for the accountancy profession dedicated to serving the public interest by strengthening the profession and contributing to the development of strong international economies. IFAC is comprised of 180 members and associates in 135 jurisdictions, representing more than 3 million accountants in public practice, education, government service, industry, and commerce.

About the Association of International Certified Professional Accountants, and AICPA & CIMA

The Association of International Certified Professional Accountants (the Association), representing AICPA & CIMA, advances the global accounting and finance profession through its work on behalf of 689,000 AICPA and CIMA members, students and engaged professionals in 196 countries and territories. Together, we are the worldwide leader on public and management accounting issues through advocacy, support for the CPA license and specialized credentials, professional education and thought leadership. We build trust by empowering our members and engaged professionals with the knowledge and opportunities to be leaders in broadening prosperity for a more inclusive, sustainable and resilient future.

The American Institute of CPAs (AICPA), the world’s largest member association representing the CPA profession, sets ethical standards for its members and U.S. auditing standards for private companies, not-for-profit organizations, and federal, state and local governments. It also develops and grades the Uniform CPA Examination and builds the pipeline of future talent for the public accounting profession.

The Chartered Institute of Management Accountants (CIMA) is the world’s leading and largest professional body of management accountants. CIMA works closely with employers and sponsors leading-edge research, constantly updating its professional qualification and professional experience requirements to ensure it remains the employer’s choice when recruiting financially trained business leaders.

View source version on businesswire.com:https://www.businesswire.com/news/home/20220801005286/en/

CONTACT: Media:Jennifer DiClerico

IFAC

212.286.9344

jenniferdiclerico@ifac.orgJeff May

AICPA & CIMA

212.596.6122

jeffrey.may@aicpa-cima.com

KEYWORD: NEW YORK UNITED STATES NORTH AMERICA

INDUSTRY KEYWORD: BANKING ACCOUNTING PROFESSIONAL SERVICES FINANCE

SOURCE: The Association of International Certified Professional Accountants

Copyright Business Wire 2022.

PUB: 08/01/2022 08:04 AM/DISC: 08/01/2022 08:04 AM

http://www.businesswire.com/news/home/20220801005286/en

 Mon, 01 Aug 2022 00:30:00 -0500 en text/html https://www.bakersfield.com/ap/news/more-companies-obtaining-independent-assurance-on-sustainability-data-according-to-global-study-by-ifac-aicpa/article_0199d8f4-face-5f25-bf43-0a66a7d3e299.html Killexams : More companies obtaining ESG assurance, according to global survey

The percentage of companies worldwide providing assurance on ESG information continues to rise, according to the latest round of data, but the United States and the United Kingdom continue to lag behind when it comes to having auditors provide ESG assurance.

The percentage of companies that had ESG assurance provided on their reporting rose to 58% in 2020 from 51% the previous year, according to The State of Play in Reporting and Assurance of Sustainability Information. The International Federation of Accountants (IFAC) and AICPA & CIMA co-authored the report.

The percentage of worldwide ESG assurance engagements conducted by audit firms and their affiliates went down slightly from 2019 to 2020, from 63% to 61%. The numbers rose in the United States but only from 11.1% to 16.2%. In the U.K., the percentage went from 53.5% to 42.3%.

IFAC and AICPA & CIMA advocate companies opting to have their statutory auditor also perform ESG assurance engagements, and the survey found that 71% of companies using audit firms for ESG assurance are doing just that.

"The role of finance and accounting professionals is to instill trust in information," said Ami Beers, CPA, CGMA, senior director–Assurance & Advisory Innovation at the AICPA. "As it relates to ESG, we know that professional qualified and licensed accountants are well positioned to meet marketplace demands. As companies begin their ESG reporting journey, they need to establish processes and controls to collect data in order to measure that data against established standards and use the information for internal decision-making and reporting to external parties. In their public interest role, auditors maintain independence, integrity, and objectivity, and they have the necessary skills to provide the assurance on ESG information, similar to financial information, that builds confidence and trust."

Ninety-two percent of the 1,400 companies surveyed reported some ESG information in 2020, compared with 91% the previous year.

The study highlighted some findings related to what specific ESG information companies are providing, where they're providing it, and when they're providing it.

  • What: Eighty-nine percent of companies reporting ESG data in 2020 provided at least some information in each of four identified areas — greenhouse gases (GHG), other environmental, social, and governance. However, just 43% provided assurance in all four areas. GHG was the one constant, with 92% of companies reporting on it, and 95% of those providing assurance.
  • Where: Seventy-six percent of companies included assurance reports in their annual reports, while 19% provided them on a company website. The United States, U.K., and Canada were outliers, collectively including assurance in annual reports less than 40% of the time while posting on company websites about half the time. Those numbers may speak to the more informal nature of some assurance engagements in those regions.
  • When: Among the 733 companies that had both their financial audit and ESG assurance reports/signatures examined, 54 days was the worldwide average time between those issuances. The average time varies widely by country — ranging from two days in Italy to 110 days in the United States — in part because of different requirements for statutory versus voluntary disclosures by location.

— To comment on this article or to suggest an idea for another article, contact Bryan Strickland at Bryan.Strickland@aicpa-cima.com.

Resources

AICPA assurance brochure

Journal of Accountancy podcast episode with Ami Beers, "5 Trends Driving the Importance of Understanding ESG"

 Wed, 03 Aug 2022 16:48:00 -0500 text/html https://www.journalofaccountancy.com/news/2022/aug/more-companies-obtaining-esg-assurance-according-global-survey.html Killexams : Steady increase in independent ESG reporting

The number of global companies obtaining independent assurance on their environmental, social and governance (ESG) information increased from 51% to 58% in 2020, compared to the previous year.

This is according to new data from the International Federation of Accountants (IFAC), American Institute of CPAs (AICPA) and Chartered Institute of Management Accountants (CIMA), the latter two of which represent the unified voice of the Association of International Certified Professional Accountants.

The 2020 information released today is an update to the accounting bodies’ inaugural study last year that examined global trends in both sustainability-related reporting and its assurance. This latest update offers the first benchmark of progress relative to the original data. A follow-up study that incorporates 2021 information is expected to be released at a later date.

When it comes to ESG assurance, 82% of engagements were limited in scope in 2020, essentially the same as in 2019 (83%). Some 61% of assurance engagements were performed by audit firms on a global basis, a slight decline from the previous year (63%). Jurisdictions with some of the highest rates of assurance performed by professional accountants include Australia, France, Italy, Germany and Spain. In other countries, including South Korea, the UK and the US, most assurance engagements are conducted by service providers outside of the accountancy profession. Professional accountants have high professional standards, including independence, and are subject to regulatory oversight, which is critical in this space.

On the reporting side, the study found 92% of global companies provided some ESG data to investors, either through integrated, annual or standalone reports. The use of, or reference to, Sustainability Accounting Standards Board (SASB) standards more than doubled in 2020.

“It’s encouraging to see continued high levels of reporting on sustainability information and an overall increase in assurance globally,” says IFAC CEO Kevin Dancey. “But our research tells us that 80% of companies are using multiple frameworks or standards, which results in data that is not consistent, comparable or decision-useful for investors, stakeholders or society at large.

“Sustainability reporting and assurance will only reach its full potential when it is based on a harmonised global system led by the International Sustainability Standards Board’s comprehensive baseline of disclosure.”

The 2020 study data also shows 89% of companies presented at least some information in each of four categories: greenhouse gasses, other environmental factors, social and governance. Yet only 43% provided assurance for all four categories. The most common area for independent assurance was greenhouse gases (95%).

Seventy percent of global companies that engaged a professional accounting firm to perform the ESG assurance engagement chose the firm that audits their financial statements.

“High-quality reporting requires high-quality assurance,” says Susan Coffey, CPA, CGMA, AICPA & CIMA’s CEO of public accounting. “Auditors already have a holistic view of a company’s risk profile, structure and processes, so it makes sense for that firm to also engage in ESG assurance. Professionally qualified and licensed accountants have the requisite expertise, objectivity, integrity and commitment to professional standards that are essential for instilling trust in ESG reporting.”

 Tue, 02 Aug 2022 21:19:00 -0500 en-US text/html https://it-online.co.za/2022/08/03/steady-increase-in-independent-esg-reporting/ Killexams : San Marcos film studio project continuing; Meeting sheds more light on ambitious plan No result found, try new keyword!Council met again July 5 to attempt to clear up confusion and provide more information to the public about the project at 6202 W. Centerpoint Road, in the La Cima master-planned community. Thu, 07 Jul 2022 04:16:00 -0500 text/html https://www.bizjournals.com/austin/news/2022/07/06/hill-country-studio-san-marcos-environment-concern.html Killexams : A sharper focus on ESG

ESG is not new. Business and government leaders have been discussing corporate social responsibility for decades. But the heightened turbulence of the last two years has ignited a sharper focus on environmental, social and governance matters that’s shaking up every organization and industry around the world — and presenting significant opportunities for the accounting and finance profession.

This accelerating need was the focus of the AICPA & CIMA and CPA.com’s inaugural ESG Symposium held in May. The event brought together more than 50 top firm and business leaders, investors, technologists, standard-setters, lenders and thought leaders to exchange ideas and share perspectives on the critical role of CPAs and finance professionals as trusted advisors within the ESG space. 

Here are four key takeaways from the thought-provoking session. 

 Wed, 06 Jul 2022 21:00:00 -0500 en text/html https://www.accountingtoday.com/list/a-sharper-focus-on-esg Killexams : CIMA revisions for the May 2011 examinations now at Imperial College

It is said that the 'best defence is a good offence'. As students prepare to face the CIMA exams in May, Imperial College outfitted with outstanding faculty and exceptional facilities is geared to deliver their first revision programme after the syllabus change.

Operational and Management revision in Colombo and Kandy
The intensive revision at these levels comprises a 20 hour programme over a span of 4 weeks. Students are greatly benefited during a revision of this nature as lecturers lead them through significant areas of the syllabus that examiners find important in addition to practising numerous examination questions and working several past papers. Every week lecturers cover different areas of the syllabus and a multitude of questions pertaining to that area are discussed. The benefit to students is twofold. Firstly key areas of the syllabus are touched upon which act as a refresher, and secondly several past papers and model questions are practised, ensuring that students are well equipped to tackle examinations.

The team geared to deliver this intensive revision session comprise,
COLOMBO KANDY
Pravinth Rajaratnam Damitha Ukuwela,
A.Mayooran Uditha Bulumulla,
Indika Liyanahewage Reshahn Uzman
Mafrash Mohamed
Together they will ensure you are equipped with the best defence to tackle the forthcoming examinations
Strategic level revision
As we all know with the change of the syllabus a year ago, the pre seen case study is common to all 3 Strategic Level subjects. Hence it is of utmost importance that you are equipped with the right knowledge, skills and competencies to successfully tackle exams at this stage. Students at Imperial College have been exposed to exemplary tutoring by an exceptional team of lecturers.

The revision programme at this level entails a thorough analysis and discussion of the case study related to each of the subjects. This 4 week revision plan will include analysis of the case study which spans over a day and a detailed discussion of alternate scenarios for each subject will be covered over the next 3 weeks.

The exceptional team of lecturers formulated at the Strategic Level headed by Pravinth Rajaratnam, an experienced and popular lecturer, also comprises Usama Jiffry and Lasantha Wijeweera. These individuals possess a wealth of experience in teaching their respective subject areas backed by vast industry experience enabling them to contribute significantly to the analysis of the pre-seen material. This results in students getting unsurpassed support.

Our achievements
The end result of a successful sitting at any examination is of course getting that all important 50. Imperial College with that exceptional pass rates and Sri Lankan average has coached many students to not only pass but also strive towards achieving World and Sri Lankan Prizes at all levels.

With pass rates that have consistently been above Sri Lankan average don't you think you have found the best place for the last month of exam revision with an assurance to pass?With Imperial College, you stand the best chance at success. For more information on CIMA at Imperial College in,

  • Colombo - visit us at No. 3, St. Kilda's Lane, Colombo 3, or call us on 0773 918 777 or 011 4 51 52 53.
 Sat, 23 Apr 2011 10:40:00 -0500 text/html https://www.sundaytimes.lk/110424/Education/ed09.html Killexams : More Companies Obtaining Independent Assurance on Sustainability Data, According to Global Study by IFAC, AICPA & CIMA
  • 58% of global companies obtained ESG assurance in 2020
  • Assurance engagements were mostly limited in scope
  • 61% of ESG assurance services were performed by professional accounting firms, with substantial variation in practice within different jurisdictions

The number of global companies obtaining independent assurance on their environmental, social and governance (ESG) information increased from 51% to 58% in 2020, compared to the previous year, according to new data from the International Federation of Accountants (IFAC), American Institute of CPAs (AICPA) and Chartered Institute of Management Accountants (CIMA), the latter two of which represent the unified voice of the Association of International Certified Professional Accountants.

The 2020 information released today is an update to the accounting bodies' inaugural study last year that examined global trends in both sustainability-related reporting and its assurance. This latest update offers the first benchmark of progress relative to the original data. A follow-up study that incorporates 2021 information is expected to be released at a later date.

When it comes to ESG assurance, 82% of engagements were limited in scope in 2020, essentially the same as in 2019 (83%). Some 61% of assurance engagements were performed by audit firms on a global basis, a slight decline from the previous year (63%). Jurisdictions with some of the highest rates of assurance performed by professional accountants include Australia, France, Italy, Germany and Spain. In other countries, including South Korea, the United Kingdom and the United States, most assurance engagements are conducted by service providers outside of the accountancy profession. Professional accountants have high professional standards, including independence, and are subject to regulatory oversight, which is critical in this space.

On the reporting side, the study found 92% of global companies provided some ESG data to investors, either through integrated, annual or standalone reports. The use of, or reference to, Sustainability Accounting Standards Board (SASB) standards more than doubled in 2020. This is important because new disclosure proposals from the International Sustainability Standards Board (ISSB) include and build upon SASB standards. (SASB's parent organization, the Value Reporting Foundation, will consolidate into the IFRS Foundation on Aug. 1, 2022, to support the work of the ISSB.)

"It's encouraging to see continued high levels of reporting on sustainability information and an overall increase in assurance globally," said IFAC CEO Kevin Dancey. "But our research tells us that 80% of companies are using multiple frameworks or standards, which results in data that is not consistent, comparable or decision-useful for investors, stakeholders or society at large. Sustainability reporting and assurance will only reach its full potential when it is based on a harmonized global system led by the International Sustainability Standards Board's comprehensive baseline of disclosure."

The 2020 study data also shows 89% of companies presented at least some information in each of four categories: greenhouse gasses, other environmental factors, social and governance. Yet only 43% provided assurance for all four categories. The most common area for independent assurance was greenhouse gases (95%).

Seventy percent of global companies that engaged a professional accounting firm to perform the ESG assurance engagement chose the firm that audits their financial statements.

"High-quality reporting requires high-quality assurance," said Susan S. Coffey, CPA, CGMA, AICPA & CIMA's CEO of public accounting. "Auditors already have a holistic view of a company's risk profile, structure and processes, so it makes sense for that firm to also engage in ESG assurance. Professionally qualified and licensed accountants have the requisite expertise, objectivity, integrity and commitment to professional standards that are essential for instilling trust in ESG reporting."

About the Study

IFAC and AICPA & CIMA partnered with Audit Analytics to understand the state of play involving environmental, social, and governance (ESG) reporting and assurance practices on a global basis. The inaugural version of the study was published last year. This latest update reviewed data from 1,400 global companies from the G20 nations plus Hong Kong S.A.R., China and Singapore. The full methodology is referenced within the study.

About IFAC

IFAC is the global organization for the accountancy profession dedicated to serving the public interest by strengthening the profession and contributing to the development of strong international economies. IFAC is comprised of 180 members and associates in 135 jurisdictions, representing more than 3 million accountants in public practice, education, government service, industry, and commerce.

About the Association of International Certified Professional Accountants, and AICPA & CIMA

The Association of International Certified Professional Accountants (the Association), representing AICPA & CIMA, advances the global accounting and finance profession through its work on behalf of 689,000 AICPA and CIMA members, students and engaged professionals in 196 countries and territories. Together, we are the worldwide leader on public and management accounting issues through advocacy, support for the CPA license and specialized credentials, professional education and thought leadership. We build trust by empowering our members and engaged professionals with the knowledge and opportunities to be leaders in broadening prosperity for a more inclusive, sustainable and resilient future.

The American Institute of CPAs (AICPA), the world's largest member association representing the CPA profession, sets ethical standards for its members and U.S. auditing standards for private companies, not-for-profit organizations, and federal, state and local governments. It also develops and grades the Uniform CPA Examination and builds the pipeline of future talent for the public accounting profession.

The Chartered Institute of Management Accountants (CIMA) is the world's leading and largest professional body of management accountants. CIMA works closely with employers and sponsors leading-edge research, constantly updating its professional qualification and professional experience requirements to ensure it remains the employer's choice when recruiting financially trained business leaders.

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