Document ID: chunk:federal_register_of_legislation:F2025L00107:front:0:p164
Version: federal_register_of_legislation:F2025L00107
Segment Type: other
Provision Reference: 
Character Range: 511292–514619

may determine that testing the operating effectiveness of controls may need to be supplemented with limited tests of details.

External Confirmation Procedures (Ref: Para. 141R)

     1.

     2.

 3.       The practitioner may consider performing confirmation procedures to request information regarding assertions, disclosures, topics, or aspects of topics.

 4.       External confirmation procedures may provide relevant evidence about such information as:

           * Activity data collected by a third party.

           * Industry benchmark data used in calculations.

           * The terms of agreements, contracts, or transactions between the entity and other parties.

           * The results of laboratory analysis of samples.

Extending the Conclusions of Substantive Procedures Performed at an Interim Date (Ref: Para. 142)

 1.       In some circumstances, the practitioner may determine that it is effective to perform substantive procedures at an interim date, and to compare and reconcile information at the period end with the comparable information at the interim date to:

         1.                 Identify amounts that appear unusual;

         2.                 Investigate any such amounts; and

         3.                 Perform analytical procedures or tests of details to test the intervening period.

 2.       Performing substantive procedures at an interim date without undertaking additional procedures at a later date increases the risk that the practitioner will not detect misstatements that may exist at the period end. This risk increases as the remaining period is lengthened. The practitioner may consider factors such as the following in deciding whether to perform substantive procedures at an interim date:

           * The control environment and other relevant controls.

           * The availability at a later date of information necessary for the practitioner's procedures.

           * The purpose of the substantive procedure.

           * The assessed risk of material misstatement.

           * The nature of the disclosures and related assertions.

           * The ability of the practitioner to perform appropriate substantive procedures or substantive procedures combined with tests of controls to cover the remaining period in order to reduce the risk that misstatements that may exist at the period end will not be detected.

Analytical Procedures (Ref: Para. 143L–143R)

 1.       Analytical procedures may be performed when there is a reasonably predictable relationship between the sustainability information and financial or operational information (for example, the relationship between Scope 2 emissions from electricity and hours of operation or the general ledger balance for electricity purchases). Other analytical procedures may involve comparisons of information about the entity's sustainability information with external data such as industry averages; or the analysis of trends during the period to identify anomalies for further investigation, and trends across periods for consistency with other circumstances such as the acquisition or disposal of facilities.

 2.       Analytical procedures may be particularly effective when disaggregated data is readily available, or when the practitioner has reason to consider the data to be used is