Document ID: chunk:federal_register_of_legislation:F2025L00107:front:0:p31
Version: federal_register_of_legislation:F2025L00107
Segment Type: other
Provision Reference: 
Character Range: 98545–105787

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 and other procedures, 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 114R, 115R, 116R, 117, and 119R. (Ref: Para. A354–A356, A358–A359)

The Control Environment

Limited Assurance                                                                                                                                                                                                        Reasonable Assurance
    114L. The practitioner shall obtain an understanding of the entity's control environment relevant to the sustainability matters and the preparation of the sustainability information. (Ref: Para. A360, A362–A363)      114R. The practitioner shall obtain an understanding of the entity's control environment relevant to the sustainability matters and the preparation of the sustainability information, including evaluating whether: (Ref: Para. A360–A363)

                                                                                                                                                                                                                                1.       Management, with the oversight of those charged with governance, has created and maintained a culture of honesty and ethical behaviour;

                                                                                                                                                                                                                                2.       The control environment provides an appropriate foundation for the other components of the system of internal control considering the nature and complexity of the entity; and

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

The Entity's Risk Assessment Process

Limited Assurance                                                                                                                                                                                                                            Reasonable Assurance
    115L. The practitioner shall obtain an understanding of the results of the entity's risk assessment process relevant to the sustainability matters and the preparation of the sustainability information. (Ref: Para. A364, A366, A368)      115R. The practitioner shall obtain an understanding of the entity's risk assessment process relevant to the sustainability matters and the preparation of the sustainability information, including: (Ref: Para. A364–A368)

                                                                                                                                                                                                                                                    1.       Understanding the entity's process for:

                                                                                                                                                                                                                                                           1.        Identifying risks relevant to sustainability information reporting objectives;

                                                                                                                                                                                                                                                           2.      Assessing the significance of those risks, including the likelihood of their occurrence; and

                                                                                                                                                                                                                                                           3.    Addressing those risks;

                                                                                                                                                                                                                                                    1.       Understanding the results of the entity's risk assessment process; and

                                                                                                                                                                                                                                                    2.       Based on the understanding in (a) and (b), evaluating whether the entity's risk assessment process is appropriate to the entity's circumstances.

The Entity's Process for Monitoring the System of Internal Control

Limited Assurance                                                                                                                                                                                                                                               Reasonable Assurance
    116L. The practitioner shall obtain an understanding of the results of the entity's process to monitor the system of internal control relevant to the sustainability matters and the preparation of the sustainability information. (Ref: Para. A369–A370)      116R. The practitioner shall:

                                                                                                                                                                                                                                                                       1.       Obtain an understanding of: (Ref: Para. A369–A370)

                                                                                                                                                                                                                                                                              1.        The entity's process to monitor the system of internal control relevant to the sustainability matters and the preparation of the sustainability information; and

                                                                                                                                                                                                                                                                              2.      The results thereof; and

                                                                                                                                                                                                                                                                       2.       Based on this understanding, evaluate whether the entity's process to monitor