Document ID: chunk:federal_register_of_legislation:F2025L00107:front:0:p104
Version: federal_register_of_legislation:F2025L00107
Segment Type: other
Provision Reference: 
Character Range: 333559–336652

information in its own decision-making.

                   + If the entity is using the information in its decision-making, then it may be reasonable to expect that a user may be interested in that information.

                   + If the information is not used for the entity's own decision-making, that may raise a question as to why the information is being reported, and whether there may be bias in selecting only sustainability information that are easily subject to an assurance engagement or that present the entity in a positive way.

Preconditions Not Present After Acceptance (Ref: Para. 82–83)

 1.       If the practitioner discovers after accepting the engagement that one or more of the preconditions in paragraph 76 are not present, but continues the engagement, the assurance report may address the matter. For example:

           * When, in the practitioner's professional judgement the intended users are likely to be misled, since either the applicable criteria are unsuitable, or the sustainability matters are inappropriate, a qualified conclusion or adverse conclusion may be appropriate, depending on how material and pervasive the matter is.

           * A qualified conclusion or a disclaimer of conclusion may be appropriate in other circumstances depending on, in the practitioner's professional judgement, the materiality and pervasiveness of the matter.

Terms of the Assurance Engagement

Agreeing the Terms of the Assurance Engagement (Ref: Para. 85)

 1.       It is in the interests of both the engaging party and the practitioner for the practitioner to communicate in writing the agreed terms of the engagement before the commencement of the engagement to help avoid misunderstandings. The form and content of the written agreement or contract will vary depending on the engagement circumstances. For example, if law or regulation prescribes in sufficient detail the terms of the engagement, the practitioner need not record them in a written agreement, except for the fact that such law or regulation applies and that the appropriate party(ies) acknowledges and understands its responsibilities under such law or regulation.

 2.       When agreeing the terms of engagement, unless restricted by law or regulation, the practitioner may request agreement from management or those charged with governance to provide information or access to persons, such as:

           * Access to other practitioners providing audit or assurance reports on part or parts of the other information (e.g., the auditor of the financial report of the entity if the other information includes the financial report).

           * Authority to obtain information relevant to the assurance engagement on the sustainability information from the other practitioners.

           * Authority to share information requested by the financial statement auditor relevant to the audit or review of the financial report.

           * Authority to communicate findings with other practitioners, as appropriate.

 1.       In describing the practitioner's responsibilities in the terms