The demand for assurance engagements on sustainability and ESG reporting is high

  • IAASB - Assurance Image

Dec 15, 2021

Momentum is gathering for increased sustainability/environmental, social, and governance (ESG) reporting requirements for companies. Investors, policymakers, and a broad range of stakeholders seek higher quality, increasingly standardized reporting on companies’ performance on non-financial measure. And with this, demand for assurance engagements that enhance the degree of confidence of the intended users of sustainability/ESG reporting is growing.

As with financial reporting, the International Auditing and Assurance Standards Board (IAASB) believes that market participants are best served when financial and other reported information benefits from external assurance, provided by professionals committed to the public interest and highest ethical standards.

They know that their work is only the beginning, a solid foundation to build upon. This is why they committed to do more work to enhance the assurance of sustainability/ESG reporting when they approved their new 2022-2023 work plan last week.

The IAASB agreed to dedicate capacity and resources to the assurance of sustainability/ESG reporting. Information gathering and research activities, using dedicated staff resources, to determine future IAASB action will commence in January 2022. This initial work will also determine the precise scope and timing of the IAASB’s efforts. The initial work will also include a willingness to collaborate with key stakeholders throughout the world, including the standard-setting and regulatory communities.

They recognize that their initial consultations could lead to:

  • Developing new subject-matter specific standard(s) that build on and supplement ISAE 3000 (Revised);
  • Targeted enhancements to ISAE 3000 (Revised), as necessary; or
  • Other related actions that are necessary in the public interest. For example, revising our existing guidance or developing new guidance.

Our March 2022 IAASB meeting will the first opportunity to provide feedback, share views and discuss next steps.

Review the press release on the IAASB's website.

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