Key role of auditors in ESG information highlighted in CAQ report

Jul 07, 2020

A new report publised by the Center for Audit Quality (CAQ) report, The Role of Auditors in Company-Prepared ESG Information: Present and Future, highlights the key role of auditors in ESG information provision. 

The report published by the US-based nonprofit public policy advocacy organisation builds on a report released in December 2019 by CAQ, 'The Role of Auditors in Company-Prepared Information: Present and Future'. This describe the role of auditors and how they are positioned to help fill existing gaps in enhancing the reliability of decision-useful information. This new report provides:

  • an overview of what ESG reporting is
  • how investors are using the information
  • how public company auditors are well-positioned to enhance the reliability of ESG information, given their public interest role
  • key questions board members can ask management and public company auditors 
  • questions investors can ask when using ESG information to make capital allocation decisions

The coronavirus pandemic has accelerated the focus on ESG information, as investors are increasingly seeking information on employee health and work environments, according to the CAQ.