IAASB: Proposed Global Sustainability Assurance Standard ISSA 5000

IAASB: Proposed Global Sustainability Assurance Standard ISSA 5000

• 07 August 2023
• Accounting
• South African Accounting Academy

With its focus on assurance on sustainability reporting, ISSA 5000, when approved, will be the most comprehensive sustainability assurance standard available to all assurance practitioners across the globe.

Proposed ISSA 5000 is 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.

Deadline for comment on the proposed revisions via the IAASB website by 1 December 2023.

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.

Click here to download the Draft Standard:

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

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 proposed new standards issued by the standard-setting bodies, e.g. the IAASB.

• This ISSA deals with both reasonable and limited assurance engagements.

Relevance to Your Clients:

• None

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