4.6 - Audit Procedures Designed to Address the Risks Associated With Going Concern Doubts due to Climate-related Risks

Question 1

What is the first audit procedure designed to address the risks associated with going concern doubts due to climate-related risks?

Answer 1

Review company’s portfolio of products and services for sensitivity to climate-related risks (e.g are they affected by any recent changes to environmental legislation)

Question 2

What is the second audit procedure designed to address the risks associated with going concern doubts due to climate-related risks?

Answer 2

Discuss management plans for responding to ongoing climate-related risks and evaluate responses for reasonableness

Question 3

What is the third audit procedure designed to address the risks associated with going concern doubts due to climate-related risks?

Answer 3

Evaluate the governance in place at the company to form a conclusion over whether its strategy is able to adapt to climate-related risks

Question 4

What is the fourth audit procedure designed to address the risks associated with going concern doubts due to climate-related risks?

Answer 4

Perform research on affected industries and/or markets to establish extent of current or proposed environmental legislation or regulatory change

Question 5

What is the fifth audit procedure designed to address the risks associated with going concern doubts due to climate-related risks?

Answer 5

Request analysis from management regarding additional costs due to compliance with climate-related laws and regulations and apply stress-testing to establish extent of any business continuity risk