Section Preconditions for an Assurance Engagemen - Standard on Sustainability Assurance ASSA 5000 General Requirements for Sustainability Assurance Engagements - Preconditions for an Assurance Engagement | Zoe
Standard on Sustainability Assurance ASSA 5000 General Requirements for Sustainability Assurance Engagements
Preconditions for an Assurance EngagemenPreconditions for an Assurance Engagement
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Establishing Whether the Preconditions Are Present
The practitioner shall obtain a preliminary knowledge of the engagement circumstances, including: (Ref: Para. A184)
The sustainability information to be reported; and
Whether the scope of the proposed assurance engagement encompasses all or part of the sustainability information in (a). (Ref: Para. A185)
In order to establish whether the preconditions for an assurance engagement are present, based on the preliminary knowledge of the engagement circumstances and discussion with the appropriate party(ies), the practitioner shall: (Ref: Para. A184, A186–A187)
Consider whether the entity has a process to identify sustainability information to be reported; (Ref: Para. A187)
Evaluate whether the roles and responsibilities of management, those charged with governance and the engaging party, if different, are suitable in the circumstances. In doing so, the practitioner shall also evaluate whether management, or those charged with governance, when appropriate, have a reasonable basis for the sustainability information; and (Ref: Para. A186(a), A188–A191)
Evaluate whether the engagement exhibits all of the characteristics in paragraphs 77–80.
Appropriate Sustainability Matters
The practitioner shall evaluate whether the sustainability matters within the scope of the engagement are appropriate. In doing so, the practitioner shall consider whether those sustainability matters are identifiable and capable of consistent measurement or evaluation against the applicable criteria, such that the resulting sustainability information can be subjected to procedures for obtaining sufficient appropriate evidence. (Ref: Para. A192–A193)
Suitability and Availability of Criteria
The practitioner shall evaluate whether the criteria that the practitioner expects to be applied in the preparation of the sustainability information are suitable for the engagement circumstances and will be available to the intended users. In doing so, the practitioner shall:
Evaluate whether there are criteria for all of the sustainability information subject to the assurance engagement; (Ref: Para. A194)
Identify the sources of the criteria, including whether they are framework criteria, entity–developed criteria or a combination of both; (Ref: Para. A195–A198, A331)
Evaluate whether the criteria exhibit the following characteristics: (Ref: Para. A199–A201, A332–A335)
Relevance; (Ref: Para. A336–A337)
Completeness; (Ref: Para. A338)
Reliability; (Ref: Para. A339)
Neutrality; and (Ref: Para. A340–A341)
Understandability; and (Ref: Para. A342)
Evaluate whether and how the criteria will be made available to the intended users. (Ref: Para. A202)
Evidence to Support the Practitioner’s Conclusion and Form of Conclusion
The practitioner shall determine whether
The practitioner expects to be able to obtain the evidence needed to support the practitioner’s conclusion; and (Ref: Para. A203–A206L)
The practitioner’s conclusion, in the form appropriate for the engagement, is to be contained in a written report.
Rational Purpose
The practitioner shall determine whether the engagement exhibits a rational purpose. In doing so, the practitioner shall determine whether: (Ref: Para. A207–A208)
In the case of a limited assurance engagement, the practitioner expects to be able to obtain a meaningful level of assurance; (Ref: Para. A209L–A211L)
The engagement as a whole will be useful and not misleading to intended users; and
The scope of the assurance engagement is appropriate, including when the scope of the assurance engagement excludes part of the sustainability information to be reported. (Ref: Para. A212–A217)
Deciding Whether to Accept or Continue the Assurance Engagement
If the preconditions for an assurance engagement are not present, the practitioner shall discuss the matter with the engaging party. If changes cannot be made to meet the preconditions, the practitioner shall not accept the engagement as an assurance engagement, unless required by law or regulation to do so. However, an engagement accepted under such circumstances does not comply with this ASSA. Accordingly, the practitioner shall not include any reference within the assurance report to the engagement having been conducted in accordance with this ASSA or any other ASSAs.
Preconditions Not Present After Acceptance
If it is discovered after the engagement has been accepted that one or more preconditions for an assurance engagement is not present, the practitioner shall discuss the matter with the appropriate party(ies), and shall determine: (Ref: Para. A218)
Whether the matter can be resolved to the practitioner’s satisfaction;
Whether it is appropriate to continue with the engagement; and
Whether and, if so, how to communicate the matter in the assurance report.
If it is discovered after the engagement has been accepted that some or all of the applicable criteria are unsuitable or some or all of the sustainability matters are not appropriate for an assurance engagement, the practitioner shall consider withdrawing from the engagement, if withdrawal is possible under applicable law or regulation. If the practitioner continues with the engagement, the practitioner shall express a qualified or adverse conclusion, or disclaimer of conclusion, as appropriate in the circumstances. (Ref: Para. A218)
Assurance Report Prescribed by Law or Regulation
If law or regulation prescribes the layout or wording of the assurance report that is different from the requirements of the ASSAs, the practitioner shall evaluate:
Whether intended users may misunderstand the practitioner’s conclusion; and
If so, whether additional explanation in the assurance report can mitigate the possible misunderstanding.
If the practitioner concludes that additional explanation in the assurance report cannot mitigate the possible misunderstanding, the practitioner shall not accept the assurance engagement, unless required by law or regulation to do so. An assurance engagement conducted in accordance with such law or regulation does not comply with this ASSA. Accordingly, the practitioner shall not include any reference in the assurance report to the assurance engagement having been conducted in accordance with this ASSA.