Module 9: Assurance on Sustainability Reporting

Question 1

What is sustainability?

Answer 1

Sustainable development is development that meets the needs of the present without compromising the ability of future generations to meet their own needs.

Question 2

What are sustainability metrics?

Answer 2

Enviromental, Social or Governance metrics

Question 3

What is sustainability reporting?

Answer 3

assessment of environmental factors, social responsibility and governance matters in the organisation’s policies and practices

Question 4

What are the benefits of assurance on reported sustainability information?

Answer 4

• Trust around robustness
• Verification
• Credibility

Question 5

What are the key requirements of International Standard on Assurance Engagements (UK) 3000 (ISAE 3000)?

Answer 5

key stages of the engagement:
1. Before starting the assurance engagement
- Ethics and independance
- Competence
- Agreeing the terms of engagement
2. Planning the assurance engagement
3. Gathering evidence
4. Reporting

Question 6

What are the key requirements of the EU’s Corporate Sustainability Reporting Directive?

Answer 6

• mandatory for all large European companies and companies listed on the EU-regulated markets, including subsidiaries of non-EU parent companies
• include info that affects the company’s development, performance, and position.

Question 7

ISSA 5000

Answer 7

• Professional and non-professional accountants
• Developed by IAASB

developed by IAASB

Question 8

What are the key requirements of the IFRS S1 and S2?

Answer 8

IFRS S1 disclosures:
* Governance
* Strategy
* Risk management
* Metrics and targets
IFRS S2 disclosures:
* Physical risks and oppurtunities
* Transition risks and oppurtnities

Question 9

What needs to be reported in EU’s Corporate Sustainability Reporting Directive?

Answer 9

• Strategies for sustainability risks and oppurtunities
• Sustainability targets and progress
• Sustainability policies
• Uncentive schemes linked to sustainability
• Mey adverse sustanability impacts and value chain

Question 10

contents of ISSA 5000

Answer 10

1. Difference in extend of work between limited and reasonable assurance
2. Suitability of reporting criteria
3. scope of the assurance engagement
4. Evidence
5. Cimpany’s internal control and its impact on audit evidence
6. Materiality

Question 11

What are the advantages of sustainability assurance by accountants/auditors as opposed to other service providers?

Answer 11

• Qualifications and training
• Ethical requirements
• Assurance skills
• Using the work of sustainability experts
• Quality
• Understanding of the client and the business
• Public interest