Week 1 - Impact of sustainability for an assurance engagement

Question 1

What are the first two impacts of sustainability for an assurance engagement?

Answer 1

• assessment of risks faced - by client and by auditor
• assessment of client’s governance arrangements (how it oversees and manages sustainability practices)

Question 2

What are the second two impacts of sustainability for an assurance engagement?

Answer 2

• adequacy of client’s reporting
• auditor skills required to address above

Question 3

What are the two types of risk a business can face from climate change?

Answer 3

• physical risks
• transitional risks

Question 4

Physical risks

Answer 4

Which arise from the physical affects of climate change, such as storms, extreme temperatures, wildfires and flooding

Question 5

Transition risks

Answer 5

Which relate to social and economic shifts to a low-carbon economy such as changes to policy, regulation, technology and market