Document ID: chunk:federal_register_of_legislation:F2025L00107:front:0:p136
Version: federal_register_of_legislation:F2025L00107
Segment Type: other
Provision Reference: 
Character Range: 427658–431250

Determining the Suitability of Criteria for Processes, Systems and Controls (Ref: Para. 78(c), 107)

 1.       If sustainability information on processes, systems and controls is subject to the assurance engagement, the practitioner may consider whether the criteria encompass the following:

         1.                 If the assurance conclusion covers the description of the entity's process, systems or controls:

                 1.                  The control objectives and controls designed to achieve those objectives;

                 2.                The procedures and records, within both information technology and manual systems, by which the sustainability matters, and significant events and conditions, relevant to the sustainability information are recorded, processed, corrected as necessary, and transferred to the sustainability information reported.

         2.                 If the assurance conclusion covers the suitability of the design of the processes, systems or controls:

                 1.                  Identification of the risks that threaten achievement of the control objectives stated in the description of the processes, systems or controls; and

                 2.                Whether the controls identified in that description would, if operated as described, provide reasonable assurance about the achievement of the control objectives.

         3.                 If the assurance conclusion covers the operating effectiveness of the processes, systems or controls, whether the controls were consistently applied as designed throughout the specified period.

Specific Considerations for Determining the Suitability of Criteria for Performance (Ref: Para. 78(c), 107)

 1.       In evaluating whether the criteria to evaluate the entity's performance are suitable, the practitioner may consider whether the criteria encompass:

         1.                 Measures or benchmarks used to set the targets, key performance indicators, commitments or other goals against which performance is to be measured; and

         2.                 Methods of measurement or evaluation of the entity's performance.

Specific Considerations for Determining the Suitability of Criteria for Forward-looking Sustainability Information (Ref: Para. 78(c), 107)

 1.       In evaluating whether the criteria to be applied in preparing the entity's forward-looking information are suitable, the practitioner may consider whether the criteria encompass:

         1.                 The basis of the assumptions to be made and the nature, sources and extent of uncertainty inherent in those assumptions; and

         2.                 The measurement or evaluation methods to be used for the forward-looking sustainability information to be prepared on the basis of the assumptions in (a).

Relevance of the Criteria (Ref: Para. 78(c)(i), 107)

 1.       In evaluating whether the criteria are relevant, the practitioner may consider whether the criteria:

         1.                 Result in sustainability information that assists decision-making by the intended users.

         2.                 Were developed through a process, by the entity or an external party, that focused on identifying or evaluating whether the sustainability information assists decision-making by the intended users, including the general types of decisions that intended users are expected to make based on the purpose of the sustainability information.

         3.                 Address the inherent level of measurement or evaluation uncertainty in applying the