Essay Sample on Ensuring Quality Data for Effective Decision-Making

Introduction

Assurance ensures that governance activities are assessed in a different part of the organization and that they are observed in an independent capacity. Decision-making requires reliable data, the decision-makers have to be confident in the integrity of the data they are analyzing, and their confidence is built on their knowledge of the source of the data, the range of the data, the quality, and from the result of independent assurance activities (Knechel & Salterio, 2016).

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Corporate need to deliver high-quality reporting and assurance that communicates its sustainable competitive advantage effectively. Sustainability in organizations helps to set goals, measure performance, and easily manage changes to make the organization's performance more sustainable. The reports convey the disclosures of an organization's impacts, whether positive or negative, on the society, environment, and economy.

Assurance of Corporate Social Responsibility Reports

Assurance activities on Corporate Social Responsibilities reports are done to provide a positive declaration, which is intended to build confidence through objective, proportionate and adequate assurance activities (Knechel & Salterio, 2016). This, in some cases, may have to be done through an audit function. The results obtained from the assurance activities provide data and information on whether these activities are correctly followed or applied.

Reasons for Assurance

There are plenty of reasons an organization would need assurance. Besides providing quality information to help management in making an informed decision, assurance increases recognition, trust, and credibility of an organization (Elassy, 2015). It also increases the confidence in the integrity and reliability of the data released to the public domain and consequently improving the board engagement while improving stakeholder communication.

Assurance also benefits the organization internally by enhancing the data collection and reporting system, and strengthening the internal reporting and management systems, reducing risks encountered by the organization.

Assurance Standards

The assurance standards are divided into two categories. The first category is of rules issued by the International Auditing and Assurance Standards Board, which is an independent body. These standards are primarily concerned with the accuracy of published data and minimizing the liability of the assurer.

The second category is of Accountability Standards, which deals with stakeholder engagement as a center of the assurance process. In involves inclusivity, materiality, and responsiveness.

Elements of Assurance Report

Any assurance report should adhere to standard approaches and the level of assurance. The components of assurance report should include title of the organization, or corporate the audit is done for, and the address of the organization audited. The report should identify and describe the subject matter and outline the statement of the reporting criteria used.

A standardized report should describe any limitations on the examination and separating the responsibilities of reporters and assurers (Elassy, 2015). The report should outline the summary of the work performed, show the assuror's conclusion, and indicate the date of the assurance statement, name, and location of the assurer.

Assurance Level

A level of assurance describes the degree of confidence in the processes leading to verifying the report and the assurance opinion. The levels are in two categories; Reasonable assurance and limited assurance engagement. Reasonable assurance is the level of confidence that the report has no misstatement issues. For an intelligent assurance engagement, the practitioner should reduce the assurance engagement risk to an acceptably low level as the basis for a definite form of expression of the practitioner's conclusion.

A limited assurance engagement involves the practitioner to reduce the management risk to a degree acceptable in the conditions of the participation (Cohen & Simnett, 2015). Still, the risk is higher than for a reasonable assurance engagement. The evidence collected is less than that in consistent assurance but is sufficient for a dismissive form of expression of the auditor's conclusion.

Assurer Independence

Assurance independence is an essential factor in establishing the credibility of the audit opinion. Assurance independence requires the assurer to be independent of parties that may have a financial interest in the business audited (Cohen & Simnett, 2015). The concept requires the assurer to carry out their work freely and in an objective manner with integrity and an objective approach to the assurance process.

Aspects to Consider

Significant aspects to consider in the report should include auditor's income. Because the auditor earns a living from the fee paid for the service, the client's payment may affect the independence of an auditor.

The other element to consider is the scope of limitations and appointments. If the management can limit the scope of the work the assurance provider can do, this will influence the ability of the assurance provider to report on the credibility of the report.

Corporate Governance

Governance in an organization involves the process, interactions, customers' practices, and procedures usually used by management, staff, and stakeholders in the administration, direction, and control of the organization.

At a corporate level, governance looks at how any decision-making process happens, whether it is ensured or embedded, and if the evidence used to support the decision making is collected, processed, digested, and used accordingly (Malecki, 2018).

In the governance, oversight of decision-making is carried out, and if there are any, the risks are identified, analyzed, prioritized, ranked for a response. The response strategies are structured, the risks managed, and how they are handled is reviewed.

Principles of Corporate Governance

Shareholders' recognition is one of the critical importance of corporate governance. The identification of shareholders follows with the principal responsibility of shareholders, which includes the policy allowing shareholders to elect the board of directors (Tricker et al, 2015).

Transparency is the second principle, which is obtained through communication to the members of the community. Transparency means that anyone, inside or outside the company, can choose to review and verify the company's actions.

Communicating the Aspects of Corporate Governance

Most companies always strive to have a high level of corporate governance. Companies need to demonstrate excellent corporation with citizens through sound corporate governance practices, environmental awareness, and ethical behavior (Malecki, 2018). Communicating a firm's corporate governance is a crucial component of community and investor relations. With good corporate governance, a clear set of rules and controls are created in which stakeholders, directors, and officers have aligned incentives.

Benefits of Good Corporate Governance

Good governance improves an organization's reputation. If an organization publicizes its corporate governance policies, more stakeholders are willing to work with the organization because the transparency will allow them to feel confident there is little or nothing the organization hides.

By instituting rules to reduce potential fraud and conflict of interest, good governance enables both stakeholders and management to be accountable for their actions (Malecki, 2018). Besides company well management, good corporate governance ensures that companies promote good citizenship corporation through environmental awareness and ethical behavior.

References

Knechel, W. R., & Salterio, S. E. (2016). Auditing: Assurance and risk. Taylor & Francis. https://books.google.co.ke/books?hl

Cohen, J. R., & Simnett, R. (2015). CSR and assurance services: A research agenda. Auditing: A Journal of Practice & Theory, 34(1), 59-74. https://meridian.allenpress.com/ajpt/article-abstract/34/1/59/54525/

Elassy, N. (2015). The concepts of quality, quality assurance and quality enhancement. Quality Assurance in Education. https://www.emerald.com/insight/content/doi/10.1108/QAE-11-2012-0046/full/html

Tricker, R. B., & Tricker, R. I. (2015). Corporate governance: Principles, policies, and practices. Oxford University Press. ttps://books.google.co.ke/books?hl