Document ID: chunk:federal_register_of_legislation:F2025L00107:front:0:p148
Version: federal_register_of_legislation:F2025L00107
Segment Type: other
Provision Reference: 
Character Range: 464119–467335

verification processes whereby the data and information are checked by a reviewer for accuracy and completeness, and signed off to evidence that the review has taken place;

         2.                 Supporting records and other relevant information about the sustainability matters relating to the flow of information in the information system; and

         3.                 The processes used to prepare the sustainability information, including the aggregation process used, including, if any, aggregation adjustments.

 9.       The practitioner's understanding of the information system may be obtained in various ways and may include:

         1.                 Enquiries of relevant personnel about the procedures used to initiate, record, process and report events and conditions related to the topics and aspects of the topics;

         2.                 Inspection of policy or process manuals or other documentation of the information system;

         3.                 Observation of the performance of the policies or procedures by the entity's personnel; or

         4.                 Selecting events or conditions and tracing them through the applicable process in the information system (i.e., performing a walk-through).

10.       The entity's information system and communication are likely to involve the use of IT to collect or process data and information. Entities may use complex IT applications, simple spreadsheets or paper-based records, or a combination of these. The information system includes the IT environment, IT applications and other aspects of the IT environment that are relevant to the flows and processing of information in the information system. The entity's use of IT applications or other aspects of the IT environment may give rise to risks arising from the use of IT. For example, changes in the flow of information within the information system may result from program changes to IT applications, or direct changes to data in databases involved in processing or storing that information.

Scalability

 1.       The information system and how the entity communicates in smaller or less complex entities are likely to be less sophisticated and are likely to involve a less complex IT environment than in larger and more complex entities. Less complex entities with direct management involvement may not need extensive descriptions of procedures, sophisticated records, or written policies. Understanding the relevant aspects of the entity's information system may therefore require less effort in an engagement for a less complex entity and may involve a greater amount of enquiry than observation or inspection of documentation. The need to obtain an understanding, however, remains important to provide a basis for the design of further procedures and may further assist the practitioner in identifying and assessing risks of material misstatement.

Understanding the entity's process to identify sustainability information to be reported (Ref: Para. 117(a))

 1.       The practitioner may consider whether the entity's process to identify sustainability information to be reported includes:

         1.                 Identification of, or engagement