Document ID: chunk:federal_register_of_legislation:F2025L00107:front:0:p94
Version: federal_register_of_legislation:F2025L00107
Segment Type: other
Provision Reference: 
Character Range: 303880–307146

+ When the scope of the assurance engagement includes only certain parts, rather than all, of the sustainability information.

           * The assessed risks of material misstatement.

           * The significance of the evidence obtained.

           * The nature and extent of exceptions identified.

           * The need to document a conclusion or the basis for a conclusion not self-evident from the engagement documentation of the work performed or evidence obtained.

           * The assurance methodology and tools used.

 1.       Judging the significance of a matter requires an objective analysis of the facts and circumstances. Examples of significant matters include:

           * Matters that give rise to risks of material misstatement that are assessed higher on the spectrum of risk.

           * Results of procedures indicating that the sustainability information could be materially misstated or, in a reasonable assurance engagement, a need to revise the practitioner's previous assessment of the risks of material misstatement and the practitioner's responses to those risks.

           * Circumstances that cause the practitioner significant difficulty in applying necessary procedures.

           * Findings that could result in a modification to the assurance conclusion or the inclusion of an Emphasis of Matter paragraph in the assurance report.

 1.       An important factor in determining the form, content and extent of engagement documentation of significant matters is the extent of professional judgement exercised in performing the work and evaluating the results. Engagement documentation of the professional judgements made, when significant, serves to explain the practitioner's conclusions and to reinforce the quality of the judgement.

 2.       Circumstances in which it is appropriate to prepare engagement documentation relating to the use of professional judgement, include matters and judgements that are significant to:

           * The rationale for the practitioner's conclusion when a requirement provides that the practitioner "shall consider" certain information or factors, and that consideration is significant in the context of the particular engagement.

           * The basis for the practitioner's conclusion on the reasonableness of judgements (for example, the reasonableness of significant estimates).

           * The basis for the practitioner's conclusions about the authenticity of a document when further investigation is undertaken in response to conditions identified during the assurance engagement that caused the practitioner to believe that the document may not be authentic.

 1.       It is neither necessary nor practical to document every matter considered, or professional judgement made, during an engagement. Further, it is unnecessary for the practitioner to document separately (e.g., through a checklist) compliance with matters for which compliance is demonstrated by documents included within the assurance engagement file.

 2.       The requirement to document who reviewed the work performed does not imply a need for each specific working paper to include evidence of review. The requirement, however, means documenting what work was reviewed, who reviewed such work,