Document ID: chunk:federal_register_of_legislation:F2025L00107:front:0:p118
Version: federal_register_of_legislation:F2025L00107
Segment Type: other
Provision Reference: 
Character Range: 374419–377754

been used by management in the preparation of the sustainability information may include understanding:

         1.                 How management has considered the appropriateness of the information prepared by the management's expert; and

         2.                 The modifications made by management to the information prepared by the management's expert.

 2.       This understanding may assist the practitioner in:

         1.                 Evaluating the relevance and reliability of the information intended to be used as evidence; and

         2.                 Understanding whether the expert's findings or conclusions have been appropriately reflected in the sustainability information. For example, in some circumstances, management may need to modify the information prepared by the management's expert, such as when the information provided is too general and requires adjustment to reflect the circumstances unique to the entity. Management's adjustments may give rise to bias, or management may not have the appropriate competence and capabilities to adapt or adjust the information, which may cause the information to be inaccurate, incomplete or lack credibility.

Evaluating the Appropriateness of the Management's Expert's Work (Ref: Para. 92(d))

 1.       Considerations when evaluating the appropriateness of the management's expert's work as evidence may include:

           * The relevance and reasonableness of that expert's findings or conclusions, their consistency with other evidence, and whether they have been appropriately reflected in the sustainability information;

           * If that expert's work involves use of significant assumptions and methods, the relevance and reasonableness of those assumptions and methods; and

           * If that expert's work involves significant use of source data, the relevance and reliability of that source data.

Doubts About the Relevance and Reliability of Information Intended to Be Used as Evidence (Ref: Para. 93–94)

 1.       Unless the practitioner has reason to believe the contrary, the practitioner may accept records and documents as genuine.  When the practitioner identifies conditions that cause the practitioner to believe that a document may not be authentic or that terms in a document have been modified but not disclosed to the practitioner, possible procedures to investigate further may include:

         1.                 Confirming directly with the third party.

         2.                 Using the work of an expert to evaluate the document's authenticity.

 2.       Factors or circumstances that may give rise to doubts about the reliability of information intended to be used as evidence include:

           * An inability to evaluate the relevance and reliability of the information, including, for example, whether the information is authentic.

           * Misstatements identified during the assurance engagement.

           * Deficiencies in internal control identified by the practitioner.

           * When procedures performed on a population result in a higher rate of deviation than expected.

           * When information intended to be used as evidence is inconsistent with other information or evidence.

 1.       The relevance of information intended to be used as evidence may be affected by