IAASB: Proposed International Standard on Sustainability Assurance (ISSA) 5000, General Requirements for Sustainability Assurance Engagements [ED]

Comments to the AASB on this Exposure Draft are due as follows:

  • General questions – November 6, 2023.
  • Canadian amendment and potential additional Canadian amendments questions – December 31, 2023

Comments to the IAASB on its questions are due on December 1, 2023.

Next steps:

The IAASB expects to approve the final ISSA 5000 in September 2024 approximately 18 months after the final standard is approved.

The AASB expects CSSA 5000 to have the same effective date. Practitioners will be permitted to apply CSSA 5000 before the effective date.

Last up­dated:

October 2023

 

 

Overview

Once finalized, ISSA 5000 will serve as a comprehensive, stand-alone standard suitable for limited and reasonable sustainability assurance engagements. It will apply to sustainability information reported across any sustainability topic and prepared under multiple frameworks. Moreover, the standard will be profession-agnostic, enabling its use by professional accountants and other professionals performing sustainability assurance engagements.

Among the key matters discussed to date are:

  • The scope of the standard and how it fits within the structure of the IAASB’s standards: The standard will be stand-alone from ISAE 3000 (Revised), Assurance Engagements Other Than Audits or Reviews of Historical Financial Information. It will be principles-based so that it is suitable across all sustainability topics, information disclosed about those topics, and reporting frameworks, and will address both limited and reasonable assurance.
  • Key areas of focus in developing the standard: The standard will address the conduct of an assurance engagement in its entirety. However, the IAASB will specifically consider the requirements and application material for the following six priority areas – difference in work effort between limited and reasonable assurance; suitability of reporting criteria; the scope of the engagement; obtaining and evaluating evidence; the entity's system of internal control; and materiality.
  • The structure of the proposed new overarching standard: The IAASB plans to develop a single standard that follows the flow of the engagement.
  • Definitions: Development will include adapting definitions from existing IAASB terminology to sustainability assurance engagements.
  • The approach to drafting the new standard: The standard will be developed using material adapted from existing IAASB standards and guidance, including ISAE 3000 (Revised), ISAE 3410, Assurance Engagements on Greenhouse Gas Statements, and the IAASB’s non-authoritative guidance on sustainability and other extended external reporting assurance engagements. Certain ISAs will also be considered, to the extent the material is relevant to sustainability assurance engagements, is appropriate for an overarching standard, and is at an appropriate degree of specificity.

On April 24, 2023, the IAASB announced that, at its April 2023 meeting, it had confirmed its intention to advance the consultation on its proposed new standard for sustainability assurance. Subject to the expected IAASB approval of the Exposure Draft in June 2023, stakeholders can now expect the public consultation on the proposed standard to open in the latter part of July or early August 2023 and extend into December 2023. The consultation was originally scheduled to commence in October 2023.

On June 28, 2023, the IAASB announced that it has approved by unanimous vote the draft International Standard on Sustainability Assurance (ISSA) 5000, General Requirements for Sustainability Assurance Engagements, for public consultation. The consultation will be open by early August until early December 2023.

On August 3, 2023, the IAASB issued a proposed International Standard on Sustainability Assurance (ISSA) 5000 “General Requirements for Sustainability Assurance Engagements”.

Current Canadian standards used to provide assurance over extended external reporting, including sustainability information (i.e., Canadian Standard on Assurance Engagements (CSAE) 3000, Attestation Engagements Other Than Audits or Reviews of Historical Financial Information) were adopted from international standards. Not adopting ISSA 5000 would create divergence in an area that is currently aligned.

The AASB plans, subject to comments received following exposure, to adopt the proposed ISSA 5000 and the proposed conforming and consequential amendments. The result would be a new Canadian Standard on Sustainability Assurance (CSSA).

On September 21, the AASB released for Canadian input its new Exposure Draft, “Proposed CSSA 5000, General Requirements for Sustainability Assurance Engagements.” General questions and comments on the Exposure Draft should be submitted by November 6, 2023, and feedback on the Canadian amendment and potential additional Canadian amendments by December 31, 2023.

Read the Exposure Draft to learn more.

Take the surveys:

Survey 1: General Questions - Closes November 6, 2023

Survey 2: Canadian Amendments Questions - Closes December 31, 2023

For more in­for­ma­tion and up­dates on this pro­ject see the AASB’s project page and the IAASB's project page.

 

Other De­vel­op­ments

September 2023

On September 21, 2023, the AASB issued the Exposure Draft, “CSSA 5000, General Requirements for Sustainability Assurance Engagements”. General feedback on the Exposure Draft are requested by November 6, 2023, and feedback on the Canadian amendment and potential additional Canadian amendments questions are requested by December 31, 2023.

August 2023

On August 3, 2023, the IAASB issued a proposed International Standard on Sustainability Assurance (ISSA) 5000 “General Requirements for Sustainability Assurance Engagements”.

June 2023

On June 28, 2023, the IAASB announced that it has approved by unanimous vote the draft International Standard on Sustainability Assurance (ISSA) 5000, General Requirements for Sustainability Assurance Engagements, for public consultation. The consultation will be open by early August until early December 2023.

April 2023

On April 24, 2023, the International Auditing and Assurance Standards Board (IAASB) announced that, at its April 2023 meeting, it had confirmed its intention to advance the consultation on its proposed new standard for sustainability assurance. Subject to the expected IAASB approval of the Exposure Draft in June 2023, stakeholders can now expect the public consultation on the proposed standard to open in the latter part of July or early August 2023 and extend into December 2023.

September 2022

At its meeting on September 12-16, 2022, the IAASB approved the project proposal for the development of an overarching standard for assurance on sustainability reporting.  

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