Document ID: chunk:federal_register_of_legislation:F2025L00107:front:0:p97
Version: federal_register_of_legislation:F2025L00107
Segment Type: other
Provision Reference: 
Character Range: 312618–315940

The preparation of the sustainability information in accordance with the applicable criteria; and

           * For designing, implementing and maintaining a system of internal control that management and, where appropriate, those charged with governance, determine is necessary to enable the preparation of the sustainability information in accordance with the applicable criteria (see paragraph 85).

The entity's information system and communication relevant to the preparation of the sustainability information ordinarily includes the entity's process to identify sustainability information to be reported. In the absence of such a process it may be difficult to establish whether management or those charged with governance, as appropriate, have a reasonable basis for the sustainability information.

Suitability of the Roles and Responsibilities (Ref: Para. 76(b))

 1.       The three parties for an assurance engagement are:

         1.                 The engaging party;

         2.                 The practitioner; and

         3.                 The intended users.

 2.       If the engagement does not have at least three parties, it is unable to satisfy all of the elements of an assurance engagement under the  Framework for Assurance Engagements. The practitioner's responses may include:

           * Asking the engaging party to change the terms of engagement to reflect a three-party relationship;

           * Conducting the engagement as a consulting engagement;

           * Performing an agreed-upon procedures engagement; or

           * Declining the engagement.

Reasonable Basis for the Sustainability Information (Ref: Para. 76(b))

 1.       In evaluating whether management or those charged with governance, as appropriate, have a reasonable basis for the sustainability information, the practitioner may consider whether the entity has a process, including controls, to enable the preparation of the sustainability information that is free from material misstatement. What constitutes a reasonable basis will depend on the nature of the sustainability matters addressed by the sustainability information and other engagement circumstances.

 2.       If the practitioner becomes aware that there are deficiencies in the entity's process to prepare the sustainability information that is not within the proposed scope of the assurance engagement and is therefore other information, this may indicate that management or those charged with governance, as appropriate, does not have a reasonable basis for reporting such information. In these circumstances, the implications of the requirements in this standard for other information (see paragraphs 173–176) will have an impact on the practitioner's acceptance of the proposed engagement.

Appropriate Sustainability Matters (Ref: Para. 77)

 1.       Whether the sustainability matters within the scope of the engagement are appropriate is not affected by the level of assurance, that is, if a sustainability matter is not appropriate for a reasonable assurance engagement, it is also not appropriate for a limited assurance engagement, and vice versa. Therefore, inappropriate sustainability matters for a reasonable assurance engagement cannot be overcome by changing the engagement to a limited assurance engagement.

 2.       In