In September, the IAASB held two webinars on its recently proposed International Standard on Sustainability Assurance 5000. The webinars featured presentations and discussions from IAASB members, including those who helped draft the standard. Find more information on ISSA 5000 on the IAASB website: iaasb.org/ISSA5000

1. IAASB Webinar
Assurance on Sustainability
Reporting
Global Webinar Series
7 September 2023
Josephine Jackson
IAASB Vice Chair
1

2. Agenda
Materiality, Risk and Response
Key Principles, Concepts and Definitions
Introduction
Misstatements, Other Information, Communication and Reporting
Global Outreach

3. Introduction
Neil Morris
IAASB Member
3

4. Global Baseline for Sustainability Assurance: Timely Standard-Setting Action
Page 4
Respond to emerging issues and
stakeholder feedback
More specificity than ISAE 3000 (Revised)
and ISAE 3410 for sustainability priority
areas
Possible future projects:
Provide more specificity than overarching
standard
Current project: Overarching standard
ISSA 5000 General Requirements for
Sustainability Assurance Engagements

5. Scope of Overarching Standard: Proposed ISSA 5000
Page 5
ALL
Information
disclosed
about topics
ALL
Mechanisms
for reporting
ALL
Users /
stakeholders
ALL
Sustainability
topics
ALL
Reporting
standards
Suitable for engagements of all sustainability information;
principles-based requirements that can be applied for
Addresses limited and
reasonable assurance
Stand-alone
Not required to apply ISAE 3000 (Revised)
Page 5
For use by all assurance
practitioners
Relevant quality management
and ethical requirements apply

6. Key
Principles,
Concepts and
Definitions
Jamie Shannon
IAASB
Technical Advisor
6

7. Key Principles, Concepts and Definitions
Page 7
Topics
(e.g., climate, labor
practices, economic
impacts, biodiversity)
Aspects of topics
(e.g., governance, risks and
opportunities, metrics and
key performance indicators)
Sustainability matters
Disclosures
Specific information
about an
aspect of a topic
Sustainability
information
Measure or
evaluate
against
framework
(applicable
criteria )

8. Key Principles, Concepts and Definitions
Page 8
Criteria
Framework
criteria
Entity –
developed
criteria
Topics
(climate, labor
practices, economic
impacts, biodiversity)
Aspects of topics
(governance, risks and
opportunities, metrics
and key performance
indicators)
Sustainability
matters
Disclosures
Specific information
about an aspect of a
topic
Sustainability
information
Assertions
(e.g., completeness;
occurrence and
responsibility;
accuracy and
quantification; cut-
off; classification and
understandability;
consistency )
Characteristics
E.g., qualitative / quantitative; judgmental /
factual; historical / forward-looking; related to a
point in time / covers a period
“Materiality
process” incl.
double materiality

9. Key Principles, Concepts and Definitions
Page 9
Criteria
Framework
criteria
Entity –
developed
criteria
Assurance
Engagement
Scope of the assurance
engagement
E.g., all of the sustainability
information
expected to be reported by
the entity or only part(s) of
that information
The conclusion to be
expressed in the assurance
report
E.g., one conclusion for all
sustainability information
being assured, or separate
conclusions for different
disclosures
Sustainability information as a whole
Topics
(climate, labor
practices, economic
impacts, biodiversity)
Aspects of topics
(governance, risks and
opportunities, metrics
and key performance
indicators)
Sustainability
matters
Disclosures
Specific information
about an aspect of a
topic
Sustainability
information
Assertions
(e.g., completeness;
occurrence and
responsibility;
accuracy and
quantification; cut-
off; classification and
understandability;
consistency)
Characteristics
E.g., qualitative / quantitative; judgmental /
factual; historical / forward-looking; related to a
point in time / covers a period
GHG
Statement?
“Materiality
process” incl.
double materiality

10. Individuals Involved in The Engagement
Page 10
Who
Practitioner is able to be sufficiently and
appropriately involved in the work
Practitioner is unable to be sufficiently
and appropriately involved in the work
Firm Personnel Engagement Team Member
Direction, Supervision & Review (DS&R) applies
(ED-5000, paragraphs 45-48)
N/A
Practitioner’s Internal Expert Engagement Team Member
DS&R applies
(ED-5000, paragraphs 45-48)
N/A
Practitioner’s External Expert Using the Work of a Practitioner’ External
Expert (ED-5000, paragraphs 42, 49-50)
N/A
Other Practitioners (including
Network Firms and Non-
Network Firms)
Engagement Team Member
DS&R applies
(ED-5000, paragraphs 45-48)
Using the Work of Another Practitioner
(ED-5000, paragraphs 42, 51-54)

11. Feedback
11

12. Materiality,
Risk and
Response
Susan Jones
IAASB
Technical Advisor
12

13. Materiality
Page 13
Consider
materiality for
qualitative
disclosures
Determine
materiality &
performance
materiality for
quantitative
disclosures
Not for SI as a
whole, but for
each disclosure
Professional
judgment

14. Understand
Understanding
Page 14
• Identify disclosures in the
sustainability information
where material
misstatements are likely to
arise
• Design procedures to focus
on those disclosures
• Identify and asses ROMM at
assertion level for the
disclosures
• Design of further audit
procedures
U
R
L
The entity and its
environment
Applicable criteria
System of Internal
Control
Understand

15. Understanding the Components of Internal Control
Page 15
15
Understand
The control environment
The information system
The entity’s risk assessment process
Limited
Assurance
Reasonable
Assurance
Understand
& evaluate
Control activities
The entity’s process to monitor the system of internal
control
Only the results
Application material
includes further
specific aspects of
the component for
obtaining an
understanding
(adapted from ISA
315 (Revised 2019))
Reasonable
assurance:
More detailed
requirements that
specify either what
needs to be
understood or
evaluated
Maybe

16. Designing &
Performing
Further
Procedures
Overall
Responses
Responses
Page 16
Limited Assurance Reasonable Assurance
NTE are focused on the disclosures where material
misstatements are likely to arise
• Tests of controls – ONLY IF – obtaining evidence about
operating effectiveness
• Substantive procedures
Overall responses ONLY IF :
• The practitioner identifies
• Control deficiencies in the control environment that
undermine the other internal control components
• Identified or suspected fraud or NOCLAR
• Material misstatements that are likely to arise
pervasively throughout the SI
NTE responsive to the assessed risks of material
misstatement at the assertion level
• Tests of controls – ONLY IF – obtaining evidence about
operating effectiveness
• Substantive Procedures
Overall responses to address RoMM ONLY IF:
• Practitioner’s evaluation of the control environment
indicates:
• No culture of honesty and ethical behavior
• Control environment does not provide an appropriate
foundation for the other internal control components
• Control deficiencies identified in the control environment
undermine the other components
• The practitioner identifies:
• Identified or suspected fraud or NOCLAR
• Identified RoMM pervasively throughout the SI

17. Determining Whether Additional Procedures Are
Necessary in a Limited Assurance Engagement
If the practitioner becomes aware of a matter(s) that
causes the practitioner to believe the sustainability
information may be materially misstated
Design and perform additional procedures to obtain
further evidence until the practitioner is able to
A. Conclude that the matter(s) is not likely to cause the
sustainability information to be materially misstated;
or
B. Determine that the matter(s) causes the
sustainability information to be materially misstated.
Responses
Page 17
Limited Assurance

18. Response to Risks
Page 18
IF
Estimates &
Forward –
Looking
Information
(FLI)
Limited Assurance Reasonable Assurance
Practitioner shall evaluate appropriateness of:
• Management’s application of criteria
• Methods used to develop estimate and FLI (and applied
consistently)
• Changes from prior period in reported estimates/FLI
Changes from prior period in method used
Consider whether other procedures are necessary
Practitioner shall undertake one or more of the following:
• Test how management developed estimate/FLI and related
disclosures, and underlying information …
• Develop a point estimate or range to evaluate
management estimate/FLI …
• Obtain evidence from events occurring up to assurance
report date …

19. Fraud and Professional Skepticism
Page 19
Design and perform procedures
 in an unbiased manner; and
 to meet the intended purpose of performing those procedures
Doubts about relevance and reliability of information
Evaluate whether evidence met intended purpose
Respond appropriately to fraud or suspected fraud
Address inconsistent evidence, respond to management bias
Maintain professional skepticism throughout the engagement

20. Feedback
20

21. Misstatements,
Other
Information,
Communication
and Reporting
Dan Montgomery
IAASB Consultant
21

22. Material Misstatements and Other Information
Page 22
Example:
Performing
procedures on the
disclosure “work-
related injuries”
Each disclosure
Evaluate individual
and combined effect
of identified
misstatements on
that disclosure
Disclosures in
aggregate
Example:
Conclusion on
“occupational health
and safety”
including work-
related injuries
Evaluate all
misstatements related
to “occupational health
and safety” including
work-related injuries
Material misstatements
Information not subject
to the assurance
engagement
Available at the
date of the
assurance report
Included in a
document(s)
containing the
sustainability
information subject
to the assurances
Misstatement of the other information

23. Communication with TCWG and Reporting
Page 23
TCWG
Significant matters e.g.
• Identified or suspected fraud or NOCLAR
• Identified deficiencies in internal control
• Management bias in the preparation of the
sustainability information
• Uncorrected material misstatements
Assurance Report
• Based on ISAE 3000 and ISAE 3410
• Practitioner’s opinion to be included first (ISA
700 (Revised))
• Name of the engagement leader (Listed
entity)
• Separate section on other information

24. Feedback
24

25. Comprehensive
Global
Outreach
25

26. Comprehensive Global Outreach to Gain Broad Feedback
Page 26
Leveraging engagement
opportunities
• Existing jurisdictional events and global
bodies’ meetings – present face-to-face
or virtually
• Continue key stakeholder engagement
Direct engagement
with key stakeholders
• Face-to-face focus groups and meetings
with target stakeholder groups or key
bodies
• Aligned with global roundtables and
regional outreach events
Email relevant events and stakeholders in your region to MichelleHarrison@iaasb.org
Global roundtables and
regional outreach events
• 4 global roundtables led by IAASB
• 4 regional events hosted by National
Standard-setters or regulators
• Board members and NSS cascade to reach
other stakeholders or locations
Virtual awareness
raising and
information sharing
• This and other informational
webinar
• Messaging to target
stakeholder groups through
multiple channels

27. Register & Subscribe for updates: www.iaasb.org
@International Auditing and Assurance
Standards Board
@IAASB_News
@International Auditing & Assurance
Standards Board
Page 27
Follow Us