Document ID: chunk:federal_register_of_legislation:F2025L00107:front:0:p103
Version: federal_register_of_legislation:F2025L00107
Segment Type: other
Provision Reference: 
Character Range: 330576–333827

include only those areas of the sustainability information where the processes are more developed within the scope of the assurance engagement, because the preconditions have been met for those areas.

 7.       In jurisdictions in which law or regulation does not require assurance on sustainability information, and in particular for sustainability information that is reported voluntarily, there may be legitimate reasons for not including all of the sustainability information being reported by the entity within the scope of an assurance engagement. In determining whether the sustainability information within the scope of the engagement is appropriate, the practitioner may consider:

         1.                 Whether the sustainability information within the scope of the assurance engagement is likely to meet the information needs of intended users; and

         2.                 How the sustainability information will be presented and whether intended users may misinterpret what has, and has not, been subject to the assurance engagement.
 1.       Examples of circumstances when the sustainability information subject to the assurance engagement may not be appropriate include:

         * Inadequate justification for not including sustainability information to be reported within the scope of the engagement.

         * The assurance engagement excludes sustainability information that can be readily measured or evaluated and the exclusion of this sustainability information from the assurance engagement may be misleading to intended users.

         * The assurance engagement excludes sustainability information that may be significant to intended users' decisions.

         * The assurance engagement includes sustainability information that may be perceived by intended users as positive, and excludes sustainability information that is negative (e.g., areas where the entity has not met targets or has not taken action to achieve goals).

         * The reporting boundary excludes significant entities, operations or facilities, which may be misleading to intended users.

 1.       The practitioner's evaluation of the suitability of the criteria may include consideration of criteria for the preparation of any other part(s) of the sustainability information not within the scope of the assurance engagement. This may enable the practitioner to consider matters such as:

           * Whether there may be omissions of relevant parts of the sustainability information from the sustainability information within the scope of the assurance engagement, and whether such omissions call into question the rational purpose of the engagement; and

           * Whether and how the sustainability information is used in the preparer's own decision-making processes, for example:

                   + If information relating to an entity's decisions is important to its stakeholders, then it may be reasonable to expect that the entity would be using that information in its own decision-making.

                   + If the entity is using the information in its decision-making, then it may be reasonable to expect that a user may be interested in that information.

                   + If the information is not used for