Document ID: chunk:federal_register_of_legislation:F2025L00107:front:0:p35
Version: federal_register_of_legislation:F2025L00107
Segment Type: other
Provision Reference: 
Character Range: 116090–120271

control environment indicates that:

       2.       Fraud or suspected fraud or non-compliance or suspected non-compliance with laws and regulations; or                                                                        1.        Management, with the oversight of those charged with governance, has not created and maintained a culture of honesty and ethical behaviour;

       3.       Risks of material misstatement pervasively throughout the sustainability information.                                                                                       2.      The control environment does not provide an appropriate foundation for the other components of the system of internal control considering the nature and complexity of the entity; or

                                                                                                                                                                                            3.    Control deficiencies identified in the control environment undermine the other components of the system of internal control;

                                                                                                                                                                                     2.       The practitioner identifies fraud or suspected fraud or non-compliance or suspected non-compliance with laws and regulations; or

                                                                                                                                                                                     3.    The practitioner identifies risks of material misstatement pervasively throughout the sustainability information.

Responding to Identified or Suspected Fraud or Non-Compliance with Laws and Regulations

 1.            The practitioner shall respond appropriately to fraud or suspected fraud, or non-compliance or suspected non-compliance with laws and regulations, identified during the engagement by obtaining: (Ref: Para. A430–A431)

         1.                 An understanding of the nature of the act and the circumstances in which it occurred; and

         2.                 Further information to evaluate the possible effect on the sustainability information.

 1.            If the practitioner suspects there may be instances of fraud or non-compliance with laws and regulations, the practitioner shall discuss the matter, unless prohibited by law or regulation, with the appropriate level of management and, where appropriate, those charged with governance. (Ref: Para. A432)

 2.            The practitioner shall evaluate the implications of identified or suspected fraud or non-compliance with laws and regulations for the assurance engagement, including the practitioner's risk assessment procedures and the reliability of written representations, and take appropriate action. (Ref: Para. A433–A435)

Tests of Controls

 1.            If the practitioner intends to obtain evidence about the operating effectiveness of controls identified in accordance with paragraphs 119R or 120L, the practitioner shall design and perform tests of controls by: (Ref: Para. A436–A437)

         1.                 Performing enquiry and other procedures to obtain evidence about the operating effectiveness of the controls, including:

                 1.                  How the controls were applied at relevant times during the period to which the sustainability information relates;

                 2.                The consistency with which they were applied; and

                 3.              By whom or by what means they were applied.

         2.                 Determining whether the controls to be tested depend upon other controls and, if so, whether it is necessary to obtain evidence supporting the effective operation of those indirect controls.

 2.            The practitioner shall test controls for the appropriate period for which the practitioner intends to obtain evidence about the operating effectiveness of those controls, subject to paragraph 134.

 3.            If the practitioner obtains evidence about the operating effectiveness of controls during an