Sustainabilty & Audit
IAASA links on Sustainability
https://iaasa.ie/wp-content/uploads/2022/11/Info-requests-climate-related-disclosures-final.pdf
https://iaasa.ie/iaasa-has-published-a-june-2023-edition-of-standards-newsletter/
https://iaasa.ie/audit-committee-briefing-2023/
EU Auditors
What does the EU’s CSRD proposal say about the audit of sustainability information?
The proposal would for the first time introduce a general EU-wide audit (assurance) requirement for reported sustainability information. This will help to ensure that reported information is accurate and reliable. It should go a long way towards addressing the concerns of investors and other stakeholders about the reliability of the sustainability information that companies report today. The Commission is proposing to start with a ‘limited' assurance requirement.
https://finance.ec.europa.eu/capital-markets-union-and-financial-markets/company-reporting-and-auditing/company-reporting/corporate-sustainability-reporting_en
FRC Guidance for UK Auditors
Auditor responsibilities under ISA (UK) 720 in respect of climate related reporting by companies required by the Financial Conduct Authority.
The FRC has published a new FRC Staff Guidance, Auditor responsibilities under ISA (UK) 720 in respect of climate related reporting by companies required by the Financial Conduct Authority. This staff guidance also includes a brief reminder of auditor’s responsibilities under ISA (UK) 720 in respect of the company’s Streamlined Energy and Carbon Reporting (‘SECR’) disclosures.
https://www.frc.org.uk/frc-esg-work-and-climate-reporting#guidance-for-auditors
Basic technical elements linked to audit issues
In order to ascertain how sustainability changes will impact on your company/client’s audit going forward, refer to point 2.3 & 2.4 of the below link which has been taken from IAASA’s Observations on selected financial reporting issues.
https://iaasa.ie/wp-content/uploads/docs/media/IAASA/Documents/Publications/FRSU/IAASA-Observations-paper-2021.pdf
Disclosure requirements for climate change
The growth in scrutiny in the area of financial and non-financial disclosures has significance from both an internal and external stakeholder perspective. The following information will help your company/client to understand these factors from a documentation perspective and to formulate key performance indicators to guide overall performance: