Document ID: chunk:federal_register_of_legislation:F2025L00107:front:0:p29
Version: federal_register_of_legislation:F2025L00107
Segment Type: other
Provision Reference: 
Character Range: 91517–95303

the engagement team members required by paragraph 105.

Materiality

 1.                For purposes of planning and performing the assurance engagement, and evaluating whether the sustainability information is free from material misstatement, the practitioner shall: (Ref: Para. A292–A299)

         1.                 Consider materiality for qualitative disclosures; and (Ref: Para. A300)

         2.                 Determine materiality for quantitative disclosures. (Ref: Para. A301–A305)

 2.                If the applicable criteria require the entity to apply both financial materiality and impact materiality in preparing the sustainability information, the practitioner shall take into account both perspectives when considering or determining materiality in accordance with paragraph 98. (Ref: Para. A306, A337)

 3.            For quantitative disclosures, the practitioner shall determine performance materiality. (Ref: Para. A307–A311)

Revision of Materiality as the Engagement Progresses

 1.            The practitioner shall revise materiality for a disclosure(s) in the event of becoming aware of information during the assurance engagement that would have caused the practitioner to have considered or determined a different materiality initially. (Ref: Para. A312)

Documentation

 1.            The practitioner shall include in the engagement documentation:

         1.                 The factors relevant to the practitioner's consideration of materiality for qualitative disclosures in accordance with paragraph 98(a);

         2.                 The basis for the determination of materiality for quantitative disclosures, in accordance with paragraph 98(b); and

         3.                 The basis for the practitioner's determination of performance materiality in accordance with paragraph 100.

Risk Assessment Procedures

Designing and Performing Risk Assessment Procedures

Limited Assurance                                                                                                                 Reasonable Assurance
    103L.  The practitioner shall design and perform risk assessment procedures sufficient to: (Ref: Para. A313–A318, A416L)          103R. The practitioner shall design and perform risk assessment procedures sufficient to: (Ref: Para. A313–A318, A415R)

       1.       Identify and assess risks of material misstatement, whether due to fraud or error, at the disclosure level; and          1.       Identify and assess risks of material misstatement, whether due to fraud or error, at the assertion level for the disclosures; and

       1.       Design and perform further procedures.                                                                                   2.       Design and perform further procedures.

 1.            When designing and performing risk assessment procedures in accordance with paragraphs 103L and 103R, the practitioner shall consider information from the practitioner's procedures regarding acceptance and continuance of the client relationship or the sustainability assurance engagement. (Ref: Para. A319)

 1.            The engagement leader and other key members of the engagement team, and any key practitioner's external experts, shall discuss the susceptibility of the disclosures to material misstatement, whether due to fraud or error, and the application of the applicable criteria to the entity's facts and circumstances. The engagement leader shall determine which matters are to be communicated to members of the engagement team and to any practitioner's external experts not involved in the discussion. (Ref: Para. A320–A321)

Understanding the Sustainability Matters and the Sustainability Information

 1.            The practitioner shall obtain an understanding of the