ISA 5000

Question 1

ISA 5000 - Headlines

Answer 1

Increase demand for sustainability assurance as EU directive requires sustiainability reporting.

Highlights:
1. Multiple frameworks being used and so ISA 5000 can be applied irrespective of framework.

2. Profession agnostic.i.e environmental scientists can use. Providing a.Adhere to relevant enhics requirements. b. System of quality mgmt system is rigourous as accountants.

Question 2

ISA 5000- Definition of Sustainability

Answer 2

Impact of Entity on People, Planet and Profits(Economy)

Impact on Entity (performance,position,governance & policy) of People, Planet & Profits(Economy).

Question 3

ISA 5000- Planning recommendations

Answer 3

Understand what is being reported and how its being reported.

Understand internal controls and systems used to report.

Question 4

ISA 5000- Materiality Advice

Answer 4

Bifurcasted - Quantitative and Qualitative.

Definition- Information that could reasonable impact decision of user.

Or has double materiality:
impact on world
impact on orfg

Question 5

ISA 5000- Procedures

Answer 5

Vary if reasonable assurance or ltd assurance

-Require significant judgements as forward looking & based on estiamtes & future plans
- Also Involves evidence required by external experts

Question 6

ISA 5000- Reporting

Answer 6

Important that users understand level of assurance beign provided.

Question 7

ISA 5000- Greenwashing

Answer 7

• Fraudulent Reporting.
• Incresed risk of Error also, due to frequently changing reporting requirements.
• Increased reputational risk for assurance providers so must use increased scepticism.

Question 8

ISA 5000

Answer 8

Professional Competence- Unfamiliar criteria & skills
Self Interest- Foothold in potentiallylucrative new line of work may cause auditors to overlook competency requirements.
Self-Review- If performing external audit as well use separate teams.

Integrity and professional behaviour still required.