Notwithstanding the prevalent ESG backlash in the U.S., companies still face pressure, from a variety of sources, to present and substantiate their sustainability credentials. One question with respect to sustainability from the accounting perspective is who will provide assurance for sustainability information and under what conditions? In the following guest post, Jim Peterson examines these issues about assurance for sustainability reports. Jim is an American lawyer and a 19-year veteran of the in-house legal group of Arthur Andersen. His international practice concentrates on the accounting profession’s practice quality, regulatory issues, and litigation and disputes. He is also the author of the Re: Balance blog. I would like to thank Jim for allowing me to publish his article on this site. I welcome guest post submissions from responsible authors on topics of interest to this site’s readers. Please contact me directly if you would like to submit a guest post. Here is Jim’s article.Continue Reading Guest Post: Assurance for Sustainability Reports – Risk Management Wants a Word
The number of SEC and PCAOB accounting and auditing enforcement actions decreased in 2020 relative to 2019, but monetary settlements increased year-over year, according to a recent report from Cornerstone Research. The report, entitled “Accounting and Auditing Enforcement Activity – 2020 Review and Analysis” (
Two of the biggest corporate scandals this year involved German payments company Wirecard AG and Chinese retail coffee company Luckin Coffee. These two companies have one other thing in common beyond their recent involvement in high profile accounting scandals – it turns out that both companies’ auditor was Ernst & Young, as was the case with several other companies involved in recent scandals. As discussed in an October 17, 2020 Wall Street Journal article entitled “String of Companies That Imploded Have Something in Common: Ernst & Young Audited Them” (
As the pandemic has unfolded, a recession has followed in its wake, as a result of which many companies are struggling. Some will not survive –