Document ID: chunk:federal_register_of_legislation:F2025L00107:front:0:p60
Version: federal_register_of_legislation:F2025L00107
Segment Type: other
Provision Reference: 
Character Range: 202487–205681

does directly influence, which is the risk that the procedures performed by the practitioner will not detect a material misstatement (detection risk).

A27R. Reducing engagement risk to zero is very rarely attainable or cost-beneficial. Therefore, reasonable assurance is less than absolute assurance due to factors such as the following:

           * The use of selective testing.

           * The inherent limitations of internal control.

           * The fact that much of the evidence available to the practitioner is persuasive rather than conclusive.

           * The use of professional judgement in gathering and evaluating evidence and forming conclusions based on that evidence.

           * In some cases, the characteristics of the sustainability matters (e.g., forward-looking information).

Engagement Team

     1.

 2.          The engagement team includes personnel, which includes any internal experts, and, if applicable, component practitioners. Another practitioner is not part of the engagement team.

 3.          [Deleted by the AUASB.]

Aus A29.1 Internal auditors who provide direct assistance refers to the use of internal auditors to perform procedures under the direction, supervision and review of the practitioner. Although they may perform procedures similar to those performed by the practitioner, such internal auditors are not independent of the entity as is required of the practitioner. They are therefore not members of the engagement team. In Australia, the practitioners is prohibited from using internal auditors to provide direct assistance.

Entity

 1.          An example of an identifiable portion of a legal or economic entity is a single factory or other form of facility, such as a landfill site.

Firm

 1.          The legal nature of the organisation performing the assurance engagement may take many forms and may not be described as a firm.

Fraud

 1.          Although some form of management bias is inherent in subjective decisions relating to sustainability information, when there is intention to mislead, management bias is fraudulent in nature.

 2.          Paragraphs A323, A473 and A479 provide examples of matters related to material misstatements due to fraud or management bias in sustainability information, examples of where or how misstatements in sustainability information may arise and examples of misstatements due to fraud in sustainability information, respectively.

Group

 1.          A single legal entity organised with branches or divisions is also a group for purposes of this ASSA if the sustainability information for those branches and divisions is included in the single legal entity's sustainability information through an aggregation process.

Group Sustainability Information

 1.          The framework criteria may specify that the sustainability information to be reported should be for the same reporting entity as the related financial report. For example, if consolidated financial report are required to be prepared in accordance with the applicable financial reporting framework, then the sustainability information would include information for the same entities or business units included