Document ID: chunk:federal_register_of_legislation:F2025L00107:front:0:p30
Version: federal_register_of_legislation:F2025L00107
Segment Type: other
Provision Reference: 
Character Range: 95006–98838

to be communicated to members of the engagement team and to any practitioner's external experts not involved in the discussion. (Ref: Para. A320–A321)

Understanding the Sustainability Matters and the Sustainability Information

 1.            The practitioner shall obtain an understanding of the sustainability matters and the sustainability information, including the characteristics of events or conditions that could give rise to material misstatement of the disclosures. (Ref: Para. A322–A325)

Determining the Suitability of the Applicable Criteria

 1.            The practitioner shall determine whether the applicable criteria are suitable for the engagement circumstances, including that they exhibit the characteristics in paragraph 78. (Ref: Para. A199–A201, A326–A342)

Understanding the Entity's Reporting Policies

 1.            The practitioner shall obtain an understanding of the entity's reporting policies and the reason for any changes thereto. (Ref: Para. A2, A197, A343)

 2.            The practitioner shall evaluate whether the entity's reporting policies are appropriate and consistent with: (Ref: Para. A2, A343–A344)

         1.                 The applicable criteria; and

         2.                 Criteria used in the relevant industry.

Understanding the Entity and Its Environment

 1.            The practitioner shall obtain an understanding of the entity and its environment, including:

         1.                 The nature of the entity's operations, legal and organisational structure, ownership and governance, and business model; (Ref: Para. A345–A346)

         2.                 The reporting boundary and activities within the reporting boundary; and (Ref: Para. A347)

         3.                 Goals, targets, or strategic objectives related to sustainability matters and measures used to assess the entity's performance or determine management compensation. (Ref: Para. A348)

Understanding the Legal and Regulatory Framework

 1.            The practitioner shall obtain an understanding of: (Ref: Para. A349–A351)

         1.                 The legal and regulatory framework applicable to the entity and the industry or sector in which the entity operates, in the context of the entity's sustainability information; and

         2.                 How the entity is complying with that framework.

Enquiries and Discussion with Appropriate Parties

 1.            The practitioner shall make enquiries of appropriate parties and, when appropriate, others within the entity regarding whether: (Ref: Para. A352–A353)

         1.                 They have knowledge of any fraud or suspected fraud or identified or suspected non-compliance with laws and regulations affecting the sustainability information; and

         2.                 The entity has an internal audit function and, if so, make further enquiries to obtain an understanding of the activities and main findings, if any, of the internal audit function with respect to the sustainability information.

Understanding the Components of the Entity's System of Internal Control

Limited Assurance                                                                                                                                                                                                                                                                                                           Reasonable Assurance
    113L. The practitioner shall obtain an understanding, through enquiry, of the components of the entity's system of internal control relevant to the sustainability matters and the preparation of the sustainability information, in accordance with paragraphs 114L, 115L, 116L, 117 and 120L. (Ref: Para. A354–A359)      113R. The practitioner shall obtain an understanding, through enquiry