Challenges of Reporting on Ecology, Social Responsibility and Management – Impact on the Auditing and Accounting Profession

Abstract

In the dynamic environment of modern business, auditors face a multitude of unique and intricate challenges, including sustainability reporting (ESG reporting). This chapter explores the key challenges auditors confront when managing business data under ESG principles. Notable challenges include the lack or poor quality of audited documentation, the complexity of accountin g standards, high audit costs, hacking incidents, data protection issues, and a shortage of qualified personnel. These obstacles prolong the audit process, increase costs, and hinder the verification of the accuracy of financial statements. This research a ims to understand the perceived reliability of ESG sustainability disclosures, identify the gap between declared goals and actual practices in the ESG reporting of large organizations, and assess how information assurance processes and audit assurances con tribute to bridging this gap. The research is based on the analysis of relevant scientific papers and a survey conducted among accountants in Bosnia and Herzegovina. This study involved a survey of 290 accountants in the region. The survey included questio ns regarding knowledge of the concepts and standards of ESG reporting, readiness to engage in the implementation of ESG reporting, evaluation of skills and knowledge for working with ESG reporting, and expectations about changes in roles and responsibiliti es, long -term impacts on careers, and opportunities for professional development. The research results indicate that ESG reporting significantly affects the accounting profession in Bosnia and Herzegovina. Accountants are willing to engage in the implement ation of ESG reporting, but they currently lack the necessary skills and knowledge.