Are auditors ready for sustainability assurance? Evidence from Singapore

Sustainability assurance (SA) will no longer be optional for businesses in the near future. As many jurisdictions and governments are expected to mandate assurance for corporate sustainability reporting (SR), it is imperative for auditors to be knowledgeable and experts in SA. A precursor of this ‘new’ responsibility and accountability is auditors’ readiness for SA engagements. This research aims to document auditors’ present state of awareness and knowledge in SR and assurance framework/standards, along with their preparedness for new SA regimes. Drawing on KAP (knowledge, attitude and practice) model, this study conducted a survey of 186 auditors working in audit firms in Singapore. This study finds that, in general, auditors feel unprepared to take on SA engagement due to a lack of confidence and professional training. Such perceptions varied based on auditors’ knowledge, awareness, seniority of their position at the firm, and personal interests in sustainability-related topics. Our study provides an original understanding of knowledge gaps and training needs for auditors to perform SA engagements and ensure credibility accordingly, particularly within Singapore's context. The current state of a general lack of auditor’s knowledge, training, and experience creates challenges to upholding the credibility of SA. Hence, our research is relevant and sheds light on the ongoing concerns about the credibility of SA to the broader stakeholder groups and communities. Our findings have practical and policy implications and are of interest to regulators, professional accounting/auditing bodies, tertiary education, and auditing firms.