Section Preparing the Assurance Report - Standard on Sustainability Assurance ASSA 5000 General Requirements for Sustainability Assurance Engagements - Preparing the Assurance Report | Zoe
Standard on Sustainability Assurance ASSA 5000 General Requirements for Sustainability Assurance Engagements
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The assurance report shall be in writing and shall contain a clear expression of the practitioner’s reasonable assurance opinion or limited assurance conclusion about the sustainability information. (Ref: Para. A537–A538)
The practitioner’s conclusion shall be clearly separated from information or explanations that are not intended to affect the practitioner’s conclusion, including any:
Emphasis of Matter paragraphs;
Other Matter paragraphs;
Findings related to particular aspects of the engagement;
Recommendations; or
Additional information included in the assurance report.
The wording used shall make it clear that an Emphasis of Matter paragraph, Other Matter paragraph, findings, recommendations or additional information is not intended to detract from the practitioner’s conclusion. (Ref: Para. A537–A538)
Assurance Report Content
The assurance report shall include at a minimum the following basic elements: (Ref: Para. A539, A567–A569)
A title that clearly indicates the report is an independent practitioner’s limited, reasonable or combined limited and reasonable assurance report. (Ref: Para. A540)
An addressee. (Ref: Para. A541)
The practitioner’s conclusion in the first section of the assurance report, which: (Ref: Para. A542–A552)
Includes a heading reflecting the type of conclusion provided, either:
For unmodified conclusions, “Reasonable Assurance Opinion,” “Limited Assurance Conclusion,” or appropriate headings for an assurance report for a combined reasonable assurance and limited assurance engagement; or
For modified conclusions, the heading in a. above shall be prefixed with “Qualified,” “Adverse,” or “Disclaimer of” as appropriate, and, for an assurance report for a combined reasonable and limited assurance engagement, clear identification of which opinion(s) or conclusion(s) is modified;
Identifies the entity whose sustainability information has been subject to the assurance engagement;
Identifies or describes the level of assurance, either reasonable or limited or different levels of assurance for different parts of the sustainability information, obtained by the practitioner; (Ref: Para. A542)
Identifies or describes the sustainability information subject to the assurance engagement, including, if appropriate, the sustainability matters and how that information is reported; (Ref: Para. A543–A544)
Specifies the date of, or period or periods covered by the sustainability information;
Expresses a conclusion, which: (Ref: Para. A545L–A547)
For reasonable assurance, shall be expressed in a positive form, that the sustainability information is prepared or fairly presented, in all material respects, in accordance with the applicable criteria; or
For limited assurance, shall be expressed in a form that conveys whether, based on the procedures performed and evidence obtained, a matter(s) has come to the practitioner’s attention to cause the practitioner to believe that the sustainability information is not prepared or not fairly presented, in all material respects, in accordance with the applicable criteria;
Identifies the applicable criteria, whether framework criteria, entity-developed criteria or both, and, for entity-developed criteria, where it is located; (Ref: A548–A551)
The conclusion in paragraph 190(c)(vi) shall be phrased in terms of: (Ref: Para. A545L–A547)
The sustainability information and the applicable criteria; or
A statement made by the appropriate party(ies); and
When appropriate, the conclusion shall inform the intended users of the context in which the practitioner’s conclusion is to be read. (Ref: Para. A552)
The basis for conclusion directly following the Conclusion section, with the heading “Basis for Opinion” for a reasonable assurance report, “Basis for Conclusion” for a limited assurance report, or appropriate heading(s) for an assurance report for a combined reasonable and limited assurance engagement that:
States that the engagement was conducted in accordance with ASSA 5000 General Requirements for Sustainability Assurance Engagements; (Ref: Para. A553)
For a limited assurance engagement, states that:
The procedures in a limited assurance engagement vary in nature and timing from, and are less in extent than for, a reasonable assurance engagement; and
Consequently, the level of assurance obtained in a limited assurance engagement is substantially lower than the assurance that would have been obtained had a reasonable assurance engagement been performed;
Refers to the section of the assurance report that describes the practitioner’s responsibilities in accordance with this ASSA (see paragraph 190(h));
States that the practitioner complies with the independence and other ethical requirements of:
The Code related to sustainability assurance engagements; or
Other professional requirements or requirements in law or regulation, and shall:
Identify those requirements; and
Disclose the name of the appropriate authority that has determined such requirements to be at least as demanding as the provisions of the Code related to sustainability assurance engagements;
If the relevant ethical requirements require the practitioner to publicly disclose when the practitioner applied independence requirements specific to sustainability assurance engagements of certain entities, the statement in accordance with part (iv) above shall indicate that the practitioner is independent of the entity in accordance with the independence requirements applicable to the sustainability assurance engagements of those entities; (Ref: Para. A554)
States that the firm of which the practitioner is a member applies:
ASQM 1; or
Other professional requirements, or requirements in law or regulation, and shall:
Identify those requirements; and
Disclose the name of the appropriate authority that has determined such requirements to be at least as demanding as ASQM 1;
States whether the practitioner believes that the evidence the practitioner has obtained is sufficient and appropriate to provide a basis for the practitioner’s conclusion; and
If the practitioner expresses a modified conclusion, provides a description of the matter(s) giving rise to the modification.
Where applicable, a section with a heading "Other Information,” containing the matters in accordance with paragraph 202.
A section with the heading "Responsibilities for the Sustainability Information” that:
States that management or those charged with governance, as appropriate, is responsible for: (Ref: Para. A555–A556)
The preparation and, if applicable, fair presentation of the sustainability information in accordance with the applicable criteria; and (Ref: Para. A557)
Designing, implementing and maintaining such internal controls that management determines is necessary to enable the preparation of sustainability information in accordance with the applicable criteria that is free from material misstatement, whether due to fraud or error; and
If those responsible for oversight of the process to prepare the sustainability information are different from those who fulfill the responsibilities described in (f)(i), identifies those responsible for oversight. (Ref: Para. A556)
If applicable, a section with the heading “Inherent Limitations in Preparing the Sustainability Information” that describes any significant inherent limitations associated with the measurement or evaluation of the sustainability matters against the applicable criteria, including inherent limitations relating to forward-looking information included in the sustainability information. (Ref: Para. A494, A558–A560 and A579)
A section with the heading "Practitioner’s Responsibilities” that states that: (Ref: Para. A555)
The objective of the practitioner is to plan and perform the assurance engagement to obtain limited or reasonable assurance, as applicable, about whether the sustainability information is free from material misstatement, whether due to fraud or error, and to issue an assurance report that includes a conclusion (for limited assurance) or opinion (for reasonable assurance);
Misstatements can arise from fraud or error, and:
Are considered material if, individually or in the aggregate, they could reasonably be expected to influence the decisions of intended users taken on the basis of the sustainability information; or
If materiality is defined or described differently in the applicable criteria, include such definition or description;
The practitioner exercises professional judgement and maintains professional scepticism throughout the engagement;
The practitioner performs risk assessment procedures, including obtaining:
For limited assurance: an understanding of internal controls relevant to the engagement to identify and assess the risks of material misstatement, whether due to fraud or error, at the disclosure level, but not for the purpose of providing a conclusion on the effectiveness of the entity’s internal control. If the limited assurance report includes a conclusion on the effectiveness of internal control, the practitioner shall omit the phrase that the practitioner’s consideration of internal control is not for the purpose of providing a conclusion on the effectiveness of the entity’s internal control; or
For reasonable assurance: an understanding of internal controls relevant to the engagement, to identify and assess the risks of material misstatement, whether due to fraud or error, at the assertion level for the disclosures, but not for the purpose of expressing an opinion on the effectiveness of the entity’s internal controls. If the reasonable assurance report includes an opinion on the effectiveness of internal control, the practitioner shall omit the phrase that the practitioner’s consideration of internal control is not for the purpose of expressing an opinion on the effectiveness of the entity’s internal control;
The practitioner designs and performs procedures:
For limited assurance: responsive to the assessed risks of material misstatement at the disclosure level; or
For reasonable assurance: responsive to the assessed risks of material misstatement at the assertion level for the disclosures;
The risk of not detecting a material misstatement due to fraud is higher than for one due to error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal controls.
For limited assurance, a section, with the heading "Summary of Work Performed," that contains an informative summary of the work performed as a basis for the practitioner’s conclusion. This section shall describe the nature, timing and extent of procedures performed sufficiently to enable users to understand the limited assurance the practitioner has obtained. (Ref: Para. A561–A565L)
The practitioner’s signature.
The location in the jurisdiction where the engagement leader practices.
The date of the assurance report. The assurance report shall be dated no earlier than the date on which: (Ref: Para. A566)
The practitioner has obtained the evidence on which the practitioner’s conclusion is based, including evidence that those with the recognised authority have asserted that they have taken responsibility for the sustainability information; and
When an engagement quality review is required in accordance with ASQM 1 or the firm’s policies or procedures, the engagement quality review is complete.
Name of the Engagement Leader in the Assurance Report
When the assurance report on sustainability information is for a listed entity, the name of the engagement leader shall be included, unless, in rare circumstances, such disclosure is reasonably expected to lead to a significant personal security threat. In the rare circumstances that the practitioner intends not to include the name of the engagement leader in the assurance report, the practitioner shall discuss this intention with those charged with governance to inform them of the practitioner’s assessment of the likelihood and severity of a significant personal security threat. (Ref: Para. A570–A572)
Reference to a Practitioner’s Expert in the Assurance Report
If the practitioner refers to the work of a practitioner’s expert in the assurance report, the wording of that report shall not identify the expert, unless required by law or regulation, or otherwise imply that the practitioner’s responsibility for the conclusion expressed in that report is reduced because of the involvement of that expert. (Ref: Para. A99, A573–A575)
Other Reporting Responsibilities
If the practitioner addresses other reporting responsibilities in the assurance report on the sustainability information that are in addition to the practitioner’s responsibilities under this ASSA, these other reporting responsibilities shall be addressed in a separate section in the assurance report with a heading “Report on Other Legal and Regulatory Requirements” or otherwise as appropriate to the content of the section. If these other reporting responsibilities address the same report elements as those presented under the reporting responsibilities required by this ASSA, the other reporting responsibilities may be presented in the same section as the related report elements required by this ASSA. (Ref: Para. A576–A577)
If other reporting responsibilities are presented in the same section as the related report elements required by this ASSA, the practitioner’s report shall clearly differentiate the other reporting responsibilities from the reporting that is required by this ASSA. (Ref: Para. A578)
If the assurance report contains a separate section that addresses other reporting responsibilities, the requirements of paragraph 190 shall be included under a section with a heading “[Limited, Reasonable, or Limited and Reasonable] Assurance Report on the Sustainability Information.” The “Report on Other Legal and Regulatory Requirements” shall follow the “[Limited, Reasonable, or Limited and Reasonable] Assurance Report on the Sustainability Information.” (Ref: Para. A578)
If the practitioner is required by law or regulation to use a specific layout or wording of the assurance report, the assurance report shall refer to this ASSA only if the assurance report includes, at a minimum, each of the elements identified in paragraphs 190 and 191.
Engagements Conducted in Accordance with Both ASSA 5000 and Other Assurance Standards
A practitioner may be required to conduct an assurance engagement in accordance with the assurance standards of a specific jurisdiction (the “other assurance standards”), and has additionally complied with this ASSA in the conduct of the engagement. If this is the case, the assurance report may refer to this ASSA in addition to the other assurance standards, but the practitioner shall do so only if:
There is no conflict between the requirements in the other assurance standards and those in this ASSA that would lead the practitioner:
to reach a different conclusion, or
not to include an Emphasis of Matter paragraph or Other Matter paragraph that, in the particular circumstances, is required by this ASSA; and
The assurance report includes, at a minimum, each of the elements set out in paragraphs 190 and 191 when the practitioner uses the layout or wording specified by the other assurance standards. The assurance report shall identify such other assurance standards, including the jurisdiction of origin of the other assurance standards.
Unmodified Conclusion
Limited Assurance
Reasonable Assurance
198L. The practitioner shall express an unmodified limited assurance conclusion when the practitioner concludes, that, based on the procedures performed and evidence obtained, no matter(s) has come to the attention of the practitioner that causes the practitioner to believe that:In the case of compliance criteria, the sustainability information is not prepared, in all material respects, in accordance with the applicable criteria; orIn the case of fair presentation criteria, the sustainability information is not fairly presented, in all material respects, in accordance with the applicable criteria.
198R. The practitioner shall express an unmodified reasonable assurance opinion when the practitioner concludes that:In the case of compliance criteria, the sustainability information is prepared, in all material respects, in accordance with the applicable criteria; orIn the case of fair presentation criteria, the sustainability information is fairly presented, in all material respects, in accordance with the applicable criteria.
Emphasis of Matter Paragraph and Other Matter Paragraph
If the practitioner considers it necessary to: (Ref: Para. A579–A582)
Draw intended users’ attention to a matter presented or disclosed in the sustainability information that, in the practitioner’s judgement, is of such importance that it is fundamental to intended users’ understanding of that information (an Emphasis of Matter paragraph); or
Communicate a matter other than those that are presented or disclosed in the sustainability information that, in the practitioner’s judgement, is relevant to intended users’ understanding of the engagement, the practitioner’s responsibilities or the assurance report (an Other Matter paragraph); and
this is not prohibited by law or regulation, the practitioner shall do so in a paragraph in the assurance report, with an appropriate heading, that clearly indicates the practitioner’s conclusion is not modified in respect of the matter.
If the applicable criteria are designed for a specific purpose, the practitioner shall include an Emphasis of Matter paragraph that alerts readers to this fact, and that, as a result, the sustainability information may not be suitable for another purpose. (Ref: Para. A583–A584)
Other Information
If the practitioner has obtained the other information by the date of the assurance report, the assurance report shall include a separate section in accordance with paragraph 190(e), except when the practitioner disclaims a conclusion, in which case an “Other Information” section is not included. (Ref: Para. A585)
When the assurance report is required to include an Other Information section in accordance with paragraph 201, this section shall include:
A statement that management or those charged with governance, as appropriate, is responsible for the other information;
An identification of other information obtained by the practitioner prior to the date of the assurance report;
A statement that the practitioner’s conclusion does not cover the other information and, accordingly, that the practitioner does not provide a conclusion thereon; (Ref: Para. A586)
A description of the practitioner’s responsibilities relating to reading, considering, and reporting on other information as required by this ASSA; and
Either:
A statement that the practitioner has nothing to report with respect to the other information; or
If the practitioner has concluded that there is an uncorrected material misstatement of the other information, a statement that describes the uncorrected material misstatement of the other information.
Modified Conclusion
The practitioner shall express a modified conclusion in the following circumstances:
When, in the practitioner’s professional judgement, a scope limitation exists, and the effect of the matter could be material. In such cases, the practitioner shall express a qualified conclusion or a disclaimer of conclusion. (Ref: Para. A587, A593L–A595)
When, in the practitioner’s professional judgement, the sustainability information is materially misstated. In such cases, the practitioner shall express a qualified conclusion or adverse conclusion. (Ref: Para. A588–A590, A593L–A595)
The practitioner shall express a qualified conclusion when, in the practitioner’s professional judgement, the effects, or possible effects, of a matter are not so material and pervasive as to require an adverse conclusion or a disclaimer of conclusion. A qualified conclusion shall be expressed as being “except for” the effects, or possible effects, of the matter to which the qualification relates. (Ref: Para. A591–A594R)
If the practitioner expresses a modified conclusion because of a scope limitation, but is also aware of a matter(s) that causes the sustainability information to be materially misstated, the practitioner shall include in the assurance report a clear description of both the scope limitation and the matter(s) that causes that the sustainability information to be materially misstated.
If a statement made by management, or those charged with governance, as appropriate, in the sustainability information has identified and properly described that the sustainability information is materially misstated, the practitioner shall either:
Express a qualified conclusion or adverse conclusion phrased in terms of the sustainability information and the applicable criteria; or
If specifically required by the terms of the engagement to phrase the conclusion in terms of a statement made by the appropriate party(ies), express an unqualified conclusion, but include an Emphasis of Matter paragraph in the assurance report referring to the statement made by the appropriate party(ies), that identifies and properly describes that the sustainability information is materially misstated.
Comparative Information
The practitioner shall determine whether the applicable criteria (or law or regulation) require comparative information to be included in the sustainability information and, if so, whether that comparative information is appropriately presented. (Ref: Para. A596)
In determining whether the comparative information is appropriately presented, the practitioner shall evaluate whether: (Ref: Para. A597–A598)
The comparative information is consistent with the disclosures presented in the prior period and, if not, any inconsistencies are addressed in accordance with the applicable criteria; and
The criteria for measurement or evaluation of the sustainability information reflected in the comparative information are consistent with those applied in the current period or, if there have been changes, whether they have been properly applied and adequately disclosed.
If the comparative information is not referred to in the practitioner’s assurance conclusion and was not subject to an assurance engagement in the prior period, the practitioner shall state that fact in an Other Matter paragraph. Such a statement does not, however, relieve the practitioner of the requirements in paragraphs 207–208. (Ref: Para. A599–A600)
If the comparative information is not referred to in the practitioner’s conclusion and was subject to an assurance engagement in the prior period, the practitioner shall state in an Other Matter paragraph: (Ref: Para. A599–A600)
If the assurance engagement for the prior period had a different level of assurance or a different engagement scope than the current period, that fact and what those differences were; or
If the assurance engagement for the prior period was conducted by a predecessor practitioner:
That fact;
The type of conclusion provided by the predecessor practitioner;
If the conclusion was modified, the reasons for any modification; and
The date of that report.
Irrespective of whether the practitioner’s conclusion refers to the comparative information, if the practitioner becomes aware that there may be a material misstatement of the comparative information presented, the practitioner shall: (Ref: Para. A601)
Discuss the matter with management and perform procedures appropriate in the circumstances;
Consider the effect on the assurance report; and
If the comparative information presented contains a material misstatement, and the comparative information has not been restated:
When the practitioner’s conclusion refers to the comparative information, the practitioner shall express a qualified conclusion or an adverse conclusion in the assurance report; or
When the practitioner’s conclusion does not refer to the comparative information, the practitioner shall include an Other Matter paragraph in the assurance report describing the circumstances affecting the comparative information.
Documentation
Matters Arising After the Date of the Assurance Report
If, in exceptional circumstances, the practitioner performs new or additional procedures or draws new conclusions after the date of the assurance report, the practitioner shall document: (Ref: Para. A602)
The circumstances encountered;
The new or additional procedures performed, evidence obtained, and conclusions reached, and their effect on the assurance report; and
When and by whom the resulting changes to engagement documentation were made and reviewed.