Financial Accounting Blog

Friday, May 28, 2004

Auditors may increase focus on reporting of environmental issues. An article in Accountancy magazine implies that major auditing firms may increase their scrutiny over reporting of environmental and other non-financial issues.

The Big Four and the accounting bodies agree that non-financial information, including environmental issues, should take greater precedence in companies' reporting procedures.
David Phillips, a partner at PricewaterhouseCoopers, stressed to Accountancy: 'Companies are realizing that non-financial information has an effect on corporate reputation, and in convincing investors that management is running the company properly. ... I think we are going to see more pressure on companies, particularly from the legislative world, to better articulate the area of environmental performance, in particular to make clear the financial implications of the environmental issues facing a company.'