Key trends and features of non-financial information audit on sustainable development as a promising form of management audit

Aim. The work aimed to identify the features of non-financial information audit on sustainable development and determine the key trends in this field.

Objectives. It seeks to analyze trends in non-financial information audits, compare financial and non-financial information as management audit objects, differentiate audits of financial statements and non-financial information, and explore specific methodologies for auditing sustainable development data.

Methods. The research draws on scientific literature focused on external and internal audit trends, the development of management audits in commercial organizations, and the theoretical and practical aspects of non-financial information audits for sustainable development, and specific methods used. It incorporates works from leading practitioners, monographic studies, and other relevant sources.

Results. The study identified six key trends shaping the development of external and internal audits, as well as the non-financial audit in sustainable development. A comparative analysis of financial and non-financial data audits, conducted across 15 parameters, revealed 11 distinct characteristics of non-financial audits, and additional features of the audit of non-financial information were identified. These features included the use of specific methodologies, such as the double materiality concept, assessments of internal control systems, business analysis methods, and digital tools, and information resources.

Conclusions. The comparison enabled to make a conclusion about six key trends that are characteristic of the audit of non-financial information in the field of sustainable development, consisting in the use of digital technologies and digitalization of audit processes, high demand for qualified auditors, the use of audit remote procedures, an increasing role of the audit of non-financial information in the field of sustainable development and non-financial reporting, conducting a cybersecurity audit within an audit of non-financial information in the field of sustainable development and non-financial reporting, development of the double materiality concept used for the purposes of conducting an audit of non-financial information in sustainable development and non-financial reporting. The specific aspects of an audit of non-financial information on sustainable development are manifested in the type of audit services provided (consideration of the service as an assignment, which provides assurance), the applicable regulatory framework, focus on more interested parties compared to an audit of accounting (financial) statements, high complexity and labor intensity of the audit, focus on assessing the company impact on the environment and social matters, the possibility of ensuring both reasonable and limited assurance when providing the service, the use of double materiality concept when providing these services, widespread use of professional judgment, the use of specific methods when providing the service, the format of the final document, as well as the methods and concepts used. Understanding the identified trends in the field of audit of non-financial information in relation to sustainable development, as well as the identified features, contributes to the high-quality audit of non-financial information, thereby increasing the extent of confidence of stakeholders in non-financial information.

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