Are auditors prepared for sustainability reports?

Abstract

This study examines the state of knowledge of Icelandic accountants for the implementation of sustainability reporting in light of the new European Union Directive (CSRD) and the implementation of the European Sustainability Reporting Standards (ESRS). In collaboration with the Association of Chartered Accountants, a survey was conducted in 2022, which revealed that Icelandic accountants were not well informed about eight recognized sustainability standards. The results point to auditors’ limited experience with sustainability reporting, which may call for further education and training before implementation. By comparing the results from the United States, it becomes clear that auditors’ limited knowledge of sustainability reports and standards is not only an Icelandic phenomenon. The study highlights the importance of knowledge transfer and an institutional approach to ensure that accountants are better equipped to meet new demands.