Sustainability assurance now comes with its own independence rules
Sustainability assurance now comes with its own independence rules
Alongside ISSA 5000, the International Ethics Standards Board for Accountants issued International Ethics Standards for Sustainability Assurance, a new Part 5 of the international ethics code. It sets ethics requirements for all sustainability assurance engagements and independence requirements where the reporting follows a general purpose framework required by law or publicly disclosed.
Two features make this relevant beyond the audit profession. The standards are profession agnostic, so they apply to any practitioner performing sustainability assurance, not only to accountants. And they bring familiar independence machinery to a field that has been operating without it: threats and safeguards, prohibitions on certain non-assurance services to assurance clients, and rules on fees and business relationships. Companies that have been buying sustainability consulting and sustainability assurance from the same provider should look at that arrangement now.
Independence questions are easier to answer before an engagement than after it. BDO Azerbaijan can review how your sustainability reporting and assurance arrangements sit against the new requirements, and advise on scoping so you do not compromise your assurance provider. Contact us to discuss your sustainability assurance arrangements.
Two features make this relevant beyond the audit profession. The standards are profession agnostic, so they apply to any practitioner performing sustainability assurance, not only to accountants. And they bring familiar independence machinery to a field that has been operating without it: threats and safeguards, prohibitions on certain non-assurance services to assurance clients, and rules on fees and business relationships. Companies that have been buying sustainability consulting and sustainability assurance from the same provider should look at that arrangement now.
Independence questions are easier to answer before an engagement than after it. BDO Azerbaijan can review how your sustainability reporting and assurance arrangements sit against the new requirements, and advise on scoping so you do not compromise your assurance provider. Contact us to discuss your sustainability assurance arrangements.