IAASB approves Proposed ISSA 5000 Exposure Draft

IAASB approves Proposed ISSA 5000 Exposure Draft

• 02 October 2024
• Auditing and Assurance
• South African Accounting Academy

Summary:

The IAASB has approved the International Standard on Sustainability Assurance (ISSA) 5000, for formal release by the end of 2024.

Article:

The proposed Exposure Draft (ED) ISSA 5000 was published in Aug 2023.

The standard will now be finalized, i.e. the text of the standard for certification by the Public Interest Oversight Board.

The IAASB expects to share final language before the end of the month and formally publish by the end of the year, in December 2024.

In January 2025, the IAASB will publish a range of guidance and application materials.

Access the ED ISSA 5000 at https://ifacweb.blob.core.windows.net/publicfiles/2023-08/IAASB-International-Standard-Sustainability-5000-Exposure-Draft_0.pdf

Proposed ISSA 5000 can be applied to:

• Information about all sustainability topics and aspects of topics
• Information prepared in accordance with any sustainability reporting framework, standard or other suitable criteria
• All sustainability information regardless of the mechanism for reporting the information
• Limited and reasonable assurance engagements

It can also be used by all assurance practitioners, as long as they comply with relevant ethical requirements and apply a system of quality management that are at least as rigorous as the International Code of Ethics for Professional Accountants (including International Independence Standards), published by the International Ethics Standards Board for Accountants, and the IAASB’s suite of quality management standards.

Proposed ISSA 5000 is also a principles-based standard, focused on principles or outcomes rather than procedures or steps. This allows the assurance practitioner to apply their professional judgment in planning and performing the assurance engagement. This approach supports the scalability and comprehensiveness of the standard by limiting possible exceptions from the principles that apply and demonstrating how a requirement applies to all entities regardless of, for example, the type of entity, industry, or sector, and whether their nature and circumstances are less complex or more complex.

Click here to read more:

https://www.iaasb.org/focus-areas/understanding-international-standard-sustainability-assurance-5000

Relevance to Auditors, Independent Reviewers & Accountants:

• As an auditor and independent reviewer, you need to comply with International Standards on Auditing and other Assurance Services, and thus you need knowledge of newly revised standards that are approved as well as when they become effective.
• Failure to adhere to International Standards may be interpreted as negligence and you could be held liable.
• As an auditor and independent reviewer, you should be aware of new standards issued by the standard-setting bodies, e.g. the IAASB.
• This ISSA deals with both reasonable and limited assurance engagements, and can be used by all practitioners (under certain circumstances).

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