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FEE issued a comment letter to the IIRC on the IIRC Papers on Assurance on Integrated Reporting: “An Introduction to the Discussion” and “An Exploration of Issues”.
Stakeholders currently exchange views on the broader issue of assurance on narrative information and it is therefore encouraging that the concept of assurance on Integrated Reporting enters the debate at this stage to assess demand, explore how to meet this demand and identify any key issues that need to be addressed.
Understandably, FEE´s comment letter focuses on the ‘issues’ as it is the angle from which the Papers and included questions address the matter. However, FEE is positive about this initiative: FEE expects assurance to add credibility to Integrated Reporting and is confident that various solutions exist to ensure cost-effective assurance in the short, medium and long term. The profession is well equipped with relevant skill sets and experience connected to providing assurance on integrated reports. Appropriate standards are also in place.
The concepts of materiality, connectivity and completeness need to be developed further. It is also important to ensure that an expectation gap is not created from a lack of clarity on how the practitioner has carried out the work and the level of detail of work that has been undertaken.
Even though the concept of assurance on Integrated Reporting is relatively new, the experience gained from other reporting developments, such as sustainability reporting and its related assurance, might provide an insight into some of the issues encountered that will also be relevant to this initiative. The discussions around assurance in this area are still ongoing but they are more advanced and thus FEE believes should be considered in respect of assurance on Integrated Reporting.