Assuring nonfinancial information: an analysis of key stakeholder expectations

What the paper says

Purpose The purpose of this study is to examine the prevailing expectations of key stakeholders concerning nonfinancial reporting (NFR) assurance in Sri Lanka. Design/methodology/approach This study adopts a qualitative, exploratory design. Data were gathered through semistructured interviews with assurance providers, preparers and users of nonfinancial reports. The interview transcripts were analyzed using thematic analysis to identify and interpret patterns in stakeholder expectations. Findings The findings indicate that stakeholder expectations of NFR assurance in Sri Lanka are primarily shaped by procedural and governance considerations, with limited emphasis on value-adding roles. Assurance providers emerge as the most salient stakeholders, with their expectations largely defining the scope, methods and visibility of assurance engagements. Users exert minimal influence, often adopting expectations from other stakeholder groups that are sometimes aspirational or weakly informed, while reporters adopt a comparatively passive role. These dynamics are reinforced by structural and contextual factors, producing an assurance environment guided more by institutional feasibility than by user-driven needs. Originality/value This study advances research on NFR assurance by integrating stakeholder salience, stakeholder expectations, contextual factors and assurance orientations within a single analytical framework. In doing so, it extends stakeholder theory in this context by conceptualizing expectation formation as practice-mediated, whereby prevailing stakeholder expectations are shaped through repeated engagement with assurance outputs and by surrounding contextual conditions, rather than arising solely from formal stakeholder position.