The assurance practitioner shall not represent compliance with this Standard unless the assurance practitioner has complied with the requirements of both this Standard and ASAE 3000. (Ref: Para. A3-A4, A14, A17, A25 and A164)

Skills, Knowledge and Experience

The lead assurance practitioner shall:

1. Have competence in assurance skills and techniques developed through extensive training and practical application, and sufficient competence in the quantification and reporting of water assets, water liabilities and changes in water assets and water liabilities to accept responsibility for the assurance conclusion; and
2. Be satisfied that those persons who are to perform the engagement collectively have the appropriate competence and capabilities, including having sufficient time to perform the engagement, including in the quantification and reporting of water assets, water liabilities and changes in water assets and water liabilities, and in assurance, to perform the assurance engagement in accordance with this Standard. (Ref: Para. A15-A16)

Preconditions for the Engagement

In order to establish whether the preconditions for the engagement are present, the assurance practitioner shall, at a minimum:

1. When determining the suitability of the applicable criteria, as required by ASAE 3000,^[13] determine whether the applicable criteria encompass: (Ref: Para. A19-A22)
   1. The appropriate identification of water assets and water liabilities to be accounted for; (Ref: Para. A20)
   2. Acceptable quantification approaches; and (Ref: Para. A21)
   3. Adequate disclosures such that intended users can understand the significant judgements made in preparing the general purpose water accounting report. (Ref: Para. A22)
2. Obtain from the responsible party an agreement that they acknowledge and understand their responsibility for:
   1. Designing, implementing and maintaining such internal control as they determine is necessary to enable the preparation of a general purpose water accounting report that is free from material misstatement, whether due to fraud or error;
   2. Preparing and presenting the general purpose water accounting report in accordance with the applicable criteria; and
   3. Referring to or describing in the general purpose water accounting report the applicable criteria and, when it is not readily apparent from the engagement circumstances, who developed the criteria. (Ref: Para. A23)
   4. Providing the assurance practitioner with: (Ref: Para. A24)
      1. Access to all information of which they are aware that is relevant to the preparation of the general purpose water accounting report such as records, documentation and other matters;
      2. Additional information that the assurance practitioner may request from them for the purpose of the engagement; and
      3. Unrestricted access to persons from whom the assurance practitioner determines it necessary to obtain assurance evidence.

If the preconditions for an assurance engagement are not present, the assurance practitioner shall discuss the matter with the engaging party. If changes cannot be made to meet the preconditions, the assurance practitioner shall not accept the engagement as an assurance engagement unless required by law or regulation to do so. However, an engagement conducted under such circumstances does not comply with this Standard or ASAE 3000. Accordingly, the assurance practitioner shall not include any reference within the assurance report to the engagement having been conducted in accordance with this Standard or ASAE 3000.

Agreement on the Terms of the Engagement

The terms of the engagement required to be agreed by ASAE 3000^[14] shall include: (Ref: Para. A25)

1. The objective and scope of the engagement;
2. The responsibilities of the assurance practitioner;
3. The responsibilities of the responsible party, including those described in paragraph 18(b);
4. Identification of the applicable criteria for the preparation of the general purpose water accounting report;
5. Reference to the expected form and content of any reports to be issued by the assurance practitioner and a statement that there may be circumstances in which a report may differ from its expected form and content; and
6. An acknowledgement that the responsible party agrees to provide written representations at the conclusion of the engagement.

ASAE 3000 requires the assurance practitioner to plan and perform the engagement with professional scepticism, recognising that circumstances mat exist that cause the general purpose water accounting report to be materially misstated. ^[15]

ASAE 3000 requires the assurance practitioner to exercise professional judgement in planning and performing an assurance engagement on a general purpose water accounting report, including determining the nature, timing and extent of procedures.^[16]

ASAE 3000 requires the assurance practitioner to apply assurance skills and techniques as part of an iterative, systematic engagement process.^[17]

When planning the engagement as required by ASAE 3000,^[18] the assurance practitioner shall: (Ref: Para. A26-A31)

1. Identify the characteristics of the engagement that define its scope;
2. Ascertain the reporting objectives of the engagement to plan the timing of the engagement and the nature of the communications required;
3. Consider the factors that, in the assurance practitioner's professional judgement, are significant in directing the engagement team's efforts;
4. Consider the results of engagement acceptance or continuance procedures (see paragraphs 17-20) and, where applicable, whether knowledge gained on other engagements performed by the lead assurance practitioner involving the water report entity is relevant;
5. Ascertain the nature, timing and extent of resources necessary to perform the engagement, including the involvement of experts and of other assurance practitioners (Ref: Para. A30-A31); and
6. Determine the impact of the internal audit function, if any, on the engagement.

Determining Materiality and Performance Materiality When Planning the Engagement

When establishing the overall engagement strategy, the assurance practitioner shall determine materiality for the general purpose water accounting report. (Ref: Para. A32-A40)

The assurance practitioner shall determine performance materiality for purposes of assessing the risks of material misstatement and determining the nature, timing and extent of further procedures.

Revision as the Engagement Progresses

The assurance practitioner shall revise materiality for the general purpose water accounting report in the event of becoming aware of information during the engagement that would have caused the assurance practitioner to have determined a different amount initially. (Ref: Para. A41)

Obtaining an Understanding of the Water Report Entity and Its Circumstances

The assurance practitioner shall obtain an understanding of the following: (Ref: Para. A42-A44)

1. The nature of the water report entity, including the physical and administrative aspects of the entity and the water resources being reported.
2. Industry, regulatory, and other externally-imposed requirements, if any, affecting the operations of the water report entity, including the applicable criteria.
3. The water management objective and strategy, if any, and associated economic, regulatory, environmental, social, cultural, physical and reputational risks. (Ref: Para. A45)
4. The selection and application of reporting policies and quantification approaches, including the reasons for changes, if any, from the prior year.
5. Whether the responsible party used a management’s expert to assist them in preparing the general purpose water accounting report. (Ref: Para. A46)
6. Whether there have been any significant events that have affected information included in the general purpose water accounting report. (Ref: Para. A47)
7. The uncertainties associated with the elements reported in the general purpose water accounting report. (Ref: Para. A48-A53)
8. Estimates, including related disclosures, included in the general purpose water accounting report.
9. The potential for double-counting of water assets and water liabilities in the general purpose water accounting report.
10. Whether there is an internal audit function and, if so, its activities and main findings with respect to water accounting and preparation of the general purpose water accounting report.
11. Other relevant internal review functions, their activities and main findings.
12. Relevant technical and peer reviews.

Procedures to Obtain an Understanding and to Identify and Assess Risks of Material Misstatement

The procedures to obtain an understanding of the water report entity and its circumstances and to identify and assess risks of material misstatement shall include the following: (Ref: Para. A42-A44, A54)

1. Enquiries of those who, in the assurance practitioner’s judgement, have information that is likely to assist in identifying and assessing risks of material misstatement due to fraud or error.
2. Analytical procedures. (Ref: Para. A55-A57)
3. Observation and inspection. (Ref: Para. A58-A60)

Obtaining an Understanding of Internal Control

Other Procedures to Obtain an Understanding and to Identify and Assess Risks of Material Misstatement

If the lead assurance practitioner has performed other assurance engagements relating to the water report entity, the lead assurance practitioner shall consider whether information obtained from  those engagements is relevant to identifying  and assessing risks of material misstatement. (Ref: Para. A65)

The assurance practitioner shall make enquiries of the responsible party and others involved in preparing the general purpose water accounting report, as appropriate, to determine whether they have knowledge of any actual, suspected or alleged fraud or non-compliance with law or regulation affecting the general purpose water accounting report. (Ref: Para. A76-A78)

The lead assurance practitioner and other key members of the engagement team, and any key assurance practitioner's external experts, shall discuss the susceptibility of the general purpose water accounting report to material misstatement whether due to fraud or error, and the application of the applicable criteria to the water report entity's facts and circumstances. The lead assurance practitioner shall determine which matters are to be communicated to members of the engagement  team, and to any assurance practitioner's external experts not involved in the discussion.

The assurance practitioner shall evaluate whether the quantification approaches and reporting policies adopted by the responsible party, are appropriate for its operations, and are consistent with the applicable criteria, quantification approaches and reporting policies used in the relevant industry and in prior periods.

Performing Procedures at Other Locations

The assurance practitioner shall determine whether it is necessary in the circumstances of the engagement to perform procedures at other locations, other than where the general purpose water accounting report is prepared. (Ref: Para. A66-A69)

Internal Audit

Where there is an internal audit function that is relevant to the engagement, the assurance practitioner shall: (Ref: Para. A70)

1. Determine whether, and to what extent, to use specific work of the internal audit function; and
2. If using the specific work of the internal audit function, determine whether that work is adequate for the purposes of the engagement.

Identifying and Assessing Risks of Material Misstatement

Causes of Risks of Material Misstatement

When performing the procedures required by paragraphs 38L or 38R, the assurance practitioner shall consider at least the following factors: (Ref: Para. A76-A81)

1. The likelihood of intentional misstatement in the general purpose water accounting report; (Ref: Para. A76-A78)
2. The likelihood of non-compliance with the provisions of law or regulation generally recognised to have a direct effect on the content of the general purpose water accounting report; (Ref: Para. A79)
3. The likelihood of omission, or misstatement, of potentially significant water assets, water liabilities or changes in water assets and water liabilities; (Ref: Para. A80(a))
4. Significant regulatory changes; (Ref: Para. A80(b))
5. The nature of operations; (Ref: Para. A80(c))
6. The likelihood of double counting of water assets, water liabilities or changes in water assets and water liabilities; (Ref: Para. A80(e))
7. The nature of quantification approaches; (Ref: Para. A80(f))
8. The degree of subjectivity in the quantification of water assets, water liabilities and changes in water assets and water liabilities; (Ref: Para. A80(g))
9. Whether there are significant water assets or water liabilities that are outside the normal course of business of the water report entity, or that otherwise appear to be unusual; (Ref: Para. A80(g) )
10. Whether any unaccounted-for difference^[19] is outside the normal operation of the water report entity, or that otherwise appears to be unusual; (Ref: Para. A80(h)) and
11. How significant estimates are made and the assumptions, concepts and data on which they are based. (Ref: Para. A80(j))

The assurance practitioner shall design and implement overall responses to address the assessed risks of material misstatement at the general purpose water accounting report level. (Ref: Para. A82-A85)

The assurance practitioner shall design and perform further procedures whose nature, timing and extent are responsive to the assessed risks of material misstatement, having regard to the level of assurance, reasonable or limited, as appropriate. (Ref: Para. A82)

Overall Responses and Further Procedures

Analytical Procedures Performed in Response to Assessed Risks of Material Misstatement

Procedures Regarding Estimates

Procedures Related to the Future Prospects Note

The assurance practitioner shall obtain sufficient appropriate assurance evidence about whether the disclosures in the future prospects note in the general purpose water accounting report: (Ref: Para. A97-A101)

1. Are in accordance with the requirements of AWAS 1; and
2. Are reasonable in the context of AWAS 1.

Procedures Related to Unaccounted-for Differences

The assurance practitioner shall obtain sufficient appropriate assurance evidence about whether the disclosures regarding unaccounted-for differences, if any, in the general purpose water accounting report: (Ref: Para. A102-A103)

1. Are in accordance with the requirements of AWAS 1; and
2. Are reasonable in the context of AWAS 1.

Information Prepared Using the Work of a Management's Expert

If information to be used as assurance evidence has been prepared using the work of a management’s expert, the assurance practitioner shall, to the extent necessary having regard to the significance of that expert’s work for the purposes of the assurance engagement: (Ref: Para. A104-A105)

1. Evaluate the competence, capabilities and objectivity of that expert; (Ref: Para. A106)
2. Obtain an understanding of the work of that expert; and (Ref: Para. A107)
3. Evaluate the appropriateness of that expert’s work as assurance evidence. (Ref: Para. A108)

Sampling

When sampling is used, the assurance practitioner shall, when designing the sample, consider the purpose of the procedure and the characteristics of the population from which the sample will be drawn. (Ref: Para. A82(b), A109)

Fraud, Law and Regulation

The assurance practitioner shall respond appropriately to fraud or suspected fraud and non-compliance or suspected non-compliance with law or regulation identified during the engagement. (Ref: Para. A110-A111)

Procedures Regarding the General Purpose Water Accounting Report Aggregation Process

Additional Procedures

Accumulation of Identified Misstatements

The assurance practitioner shall accumulate misstatements identified during the engagement, other than those that are clearly trivial. (Ref: Para. A116)

Consideration of Identified Misstatements as the Engagement Progresses

The assurance practitioner shall determine whether the overall engagement strategy and engagement plan need to be revised if:

1. The nature of identified misstatements and the circumstances of their occurrence indicate that other misstatements may exist that, when aggregated with misstatements accumulated during the engagement, could be material; or
2. The aggregate of misstatements accumulated during the engagement approaches materiality determined in accordance with paragraphs 25-27 of this Standard.

If, at the assurance practitioner's request, the responsible party has examined a type of water asset or water liability or disclosure and corrected misstatements that were detected, the assurance practitioner shall perform procedures with respect to the work performed by them to determine whether material misstatements remain.

Communication and Correction of Misstatements

The assurance practitioner shall communicate on a timely basis all misstatements accumulated during the engagement with the responsible party and shall request the responsible party to correct those misstatements.

If the responsible party refuses to correct some or all of the misstatements communicated by the assurance practitioner, the assurance practitioner shall obtain an understanding of their reasons for not making the corrections and shall take that understanding into account when forming the assurance practitioner's conclusion.

Evaluating the Effect of Uncorrected Misstatements

Prior to evaluating the effect of uncorrected misstatements, the assurance practitioner shall reassess materiality determined in accordance with paragraphs 25-27 of this Standard to confirm whether it remains appropriate in the context of the general purpose water accounting report.

The assurance practitioner shall determine whether uncorrected misstatements are material, individually or in the aggregate. In making this determination, the assurance practitioner shall consider the size and nature of the misstatements, and the particular circumstances of their occurrence. (See paragraph 99 of this Standard)

Opening Balances

The assurance practitioner shall read the most recent general purpose water accounting report, if any, and the predecessor assurance practitioner's report thereon, if any, for information relevant to opening balances, including disclosures.

The assurance practitioner shall obtain sufficient appropriate assurance evidence about whether the opening balances contain misstatements that materially affect the current period’s general purpose water accounting report by: (Ref: Para. A117-A118)

1. Determining whether the prior period’s closing balances have been correctly brought forward to the current period or, when appropriate, have been restated;
2. Determining whether the opening balances reflect the application of appropriate water accounting policies; and
3. Performing one or more of the following:
   1. Where the prior period general purpose water accounting report was assured, reviewing the predecessor assurance practitioner’s working papers to obtain evidence regarding the opening balances;
   2. Evaluating whether assurance procedures performed in the current period provide evidence relevant to the opening balances; or
   3. Performing specific assurance procedures to obtain evidence regarding the opening balances.

If the prior period general purpose water accounting report was assured by a predecessor assurance practitioner and there was a modification to the conclusion, the assurance practitioner shall evaluate the matter giving rise to the modification in assessing the risks of material misstatement in the current period general purpose water accounting report.

Effect on the Assurance Report

If the assurance practitioner is unable to obtain sufficient, appropriate evidence regarding opening balances, the assurance practitioner shall express a qualified conclusion or disclaim a conclusion on the general purpose water accounting report, as appropriate. (Ref: Para. A119-A120)

If the assurance practitioner concludes that:

1. The opening balances contain a misstatement that materially affects the current period general purpose water accounting report, and the effect of the misstatement is not appropriately accounted for or not adequately presented or disclosed; or
2. The current period water accounting policies are not consistently applied in relation to opening balances in accordance with AWAS 1; or
3. A change in water accounting policies is not appropriately accounted for or not adequately presented or disclosed in accordance with AWAS 1

the assurance practitioner shall express a qualified conclusion or an adverse conclusion, as appropriate.

If the predecessor assurance practitioner's conclusion regarding the prior period general purpose water accounting report included a modification that remains relevant and material to the current  general purpose water accounting report, the assurance practitioner shall modify the assurance practitioner's conclusion on the current period general purpose water accounting report.

When the assurance practitioner intends to use the work of another assurance practitioner, the assurance practitioner shall:

1. Communicate clearly with the other assurance practitioner about the scope and timing of the work and findings of the other assurance practitioner; and (Ref: Para. A121-A122)
2. Evaluate the sufficiency and appropriateness of evidence obtained and the process for including related information in the general purpose water accounting report. (Ref: Para. A123)

Determining the Need for an Assurance Practitioner's Expert

If expertise in a field other than water accounting and assurance is necessary to obtain sufficient appropriate assurance evidence, the assurance practitioner shall determine whether to use the work of an assurance practitioner's expert. (Ref: Para. A124-A127)

The Competence, Capabilities and Objectivity of the Assurance Practitioner's Expert

The assurance practitioner shall evaluate whether the assurance practitioner's expert has the necessary competence, capabilities and objectivity for the assurance practitioner's purposes. (Ref; Para. A128-A129)

The assurance practitioner shall obtain sufficient understanding of the field of expertise of the assurance practitioner's expert to enable the assurance practitioner to determine the nature, scope and objectives of that expert's work for the assurance practitioner's purposes. (Ref: Para. A129(c))

Agreement with the Assurance Practitioner's Expert

The assurance practitioner shall agree, in writing, when appropriate, on the following matters, with the assurance practitioner’s expert: (Ref: Para. A130-A137)

1. The nature, scope and objectives of that expert’s work;
2. The respective roles and responsibilities of the assurance practitioner and that expert;
3. The nature, timing and extent of communication between the assurance practitioner and that expert, including the form of any report to be provided by that expert; and
4. The need for that expert to observe confidentiality requirements.

Evaluating the Adequacy of the Assurance Practitioner's Expert's Work

The assurance practitioner shall evaluate the adequacy of the assurance practitioner’s expert’s work for the assurance practitioner’s purposes, including: (Ref: Para. A138-A143)

1. The relevance and reasonableness of that expert’s findings or conclusions and their consistency with other assurance evidence;
2. If that expert’s work involves assumptions and methods, the relevance and reasonableness of those assumptions and methods in the circumstances; and
3. If that expert’s work involves the use of source data that is significant to that expert’s work, the relevance, completeness and accuracy of that source data.

If the assurance practitioner determines that the work of the assurance practitioner’s expert is not adequate for the assurance practitioner’s purposes, the assurance practitioner shall: (Ref: Para. A144)

1. Agree with that expert on the nature and extent of further work to be performed by that expert; or
2. Perform additional assurance procedures appropriate to the circumstances.

Reference to the Assurance Practitioner's Expert in the Assurance Practitioner's Report

The assurance practitioner shall not refer to the work of an assurance practitioner’s expert in an assurance practitioner’s report unless: (Ref: Para. A145-A146)

1. It is required by law or regulation to do so; or
2. Such reference is relevant to an understanding of a modification to the assurance practitioner’s conclusion.

If the assurance practitioner makes reference to the work of an assurance practitioner's expert in the assurance practitioner's report, the assurance practitioner shall indicate in that report  that the reference does not reduce the assurance practitioner's responsibility for the assurance practitioner's conclusion.

The assurance practitioner shall request written representations from the responsible party: (Ref: Para. A147)

1. That they have fulfilled their responsibility for the preparation of the general purpose water accounting report, including comparative information where appropriate, in accordance with the applicable criteria, as set out in the terms of the engagement;
2. That they have provided the assurance practitioner with all relevant information and access as agreed in the terms of the engagement and reflected all relevant matters in the general purpose water accounting report;
3. Whether they believe the effects of uncorrected misstatements are immaterial, individually and in the aggregate, to the general purpose water accounting report. A summary of such items shall be included in or attached to the written representation;
4. Whether they believe that significant assumptions used in making estimates are reasonable;
5. That they have communicated to the assurance practitioner all deficiencies in internal control relevant to the engagement that are not clearly trivial of which they are aware; and
6. Whether they have disclosed to the assurance practitioner their knowledge of actual, suspected or alleged fraud or non-compliance with law or regulation where the fraud or non-compliance could have a material effect on the general purpose water accounting report.

The date of the written representations shall be as near as practicable to, but not after, the date of the assurance report.

The assurance practitioner shall disclaim a conclusion on the general purpose water accounting report or withdraw from the engagement, where withdrawal is possible under applicable law or regulation, if:

1. The assurance practitioner concludes that there is sufficient doubt about the integrity of the person(s) providing the written representations required by paragraphs 80(a)-80(b) that written representations are not reliable; or
2. The responsible party does not provide the written representations required by paragraphs 80(a)-80(b).

The assurance practitioner shall: (Ref: Para. A148)

1. Consider whether events occurring between the date of the general purpose water accounting report and the date of the assurance report require adjustment of, or disclosure in, the general purpose water accounting report, and evaluate the sufficiency and appropriateness of evidence obtained about whether such events are appropriately reflected in that general purpose water accounting report in accordance with the applicable criteria; and
2. Respond appropriately to facts that become known to the assurance practitioner after the date of the assurance report, that, had they been known to the assurance practitioner at that date, may have caused the assurance practitioner to amend the assurance report.

The assurance practitioner shall determine whether the general purpose water accounting report includes the comparative information required by AWAS 1 and whether such information is appropriately classified. For this purpose, the assurance practitioner shall evaluate whether: (Ref: Para. A149-A156)

1. The comparative information agrees with the amounts and other disclosures presented in the prior period or, when appropriate, has been restated; and (Ref: Para. A149)
2. The water accounting policies reflected in the comparative information are consistent with those applied in the current period or, if there have been changes in water accounting policies, whether those changes have been properly accounted for and adequately presented and disclosed.

If the assurance practitioner becomes aware of a possible material misstatement in the comparative information while performing the current period assurance engagement, the assurance practitioner shall discuss the matter with those person(s) with appropriate responsibilities for, and knowledge of the matters concerned and perform procedures appropriate in the circumstances. (Ref: Para. A150-Al52)

Assurance Reporting and Comparative Information

The assurance practitioner's conclusion shall not refer to the comparative information except in the circumstances described in paragraphs 87, 88 and 90.

If the assurance practitioner’s report on the prior period included a qualified opinion, a disclaimer of opinion, or an adverse opinion and the matter which gave rise to the modification is unresolved, the assurance practitioner shall modify the conclusion on the current period’s general purpose water accounting report. In the Basis for Modification paragraph in the assurance practitioner’s report, the assurance practitioner shall either: (Ref: Para. A153-A154)

1. Refer to both the current period’s figures and the corresponding figures in the description of the matter giving rise to the modification when the effects of the matter on the current period’s figures are material; or
2. In other cases, explain that the assurance conclusion has been modified because of the effects or possible effects of the unresolved matter on the comparability of the current period’s figures and the corresponding figures.

If the assurance practitioner obtains evidence that: (Ref: Para. A155)

1. a material misstatement exists in the prior period general purpose water accounting report on which an unmodified assurance conclusion has been previously issued; and
2. the comparative figures have not been properly restated or appropriate disclosures have not been made,

the assurance practitioner shall express a qualified conclusion or an adverse conclusion in the assurance report on the current period general purpose water accounting report, modified with respect to the comparative information.

Prior Period General Purpose Water Accounting Report Assured by a Predecessor Assurance Practitioner

If the general purpose water accounting report of the prior period was assured by a predecessor assurance practitioner, and the assurance practitioner is not prohibited by law or regulation from referring to the predecessor assurance practitioner’s report on the comparative information and decides to do so, the assurance practitioner shall state in an Other Matter paragraph in the assurance report: (Ref: Para. A156)

1. That the general purpose water accounting report of the prior period was conducted by the predecessor assurance practitioner;
2. The type of conclusion expressed by the predecessor assurance practitioner and, if the conclusion was modified, the reasons therefore; and
3. The date of that report.

Prior Period General Purpose Water Accounting Report Not Assured

If the prior period general purpose water accounting report was not assured, the assurance practitioner shall state in an Other Matter paragraph in the assurance report that the comparative information is not assured. Such a statement does not, however, relieve the assurance practitioner of the requirement to obtain sufficient appropriate evidence that the opening balances do not contain misstatements that materially affect the current period's general purpose water accounting report.

The assurance practitioner shall read other information included in documents containing the general purpose water accounting report and the assurance report thereon to identify material inconsistencies, if any, with the general purpose water accounting report or the assurance report and, if on reading that other information, the assurance practitioner: (Ref: Para. A157-A163)

1. Identifies a material inconsistency between that other information and the general purpose water accounting report or the assurance report; or
2. Becomes aware of a material misstatement of fact in that other information that is unrelated to matters appearing in the general purpose water accounting report or the assurance report;

the assurance practitioner shall discuss the matter with the responsible party and take further action as appropriate.

In documenting the nature, timing and extent of procedures performed, the assurance practitioner shall record: (Ref: Para. A164)

1. The identifying characteristics of the specific items or matters tested;
2. Who performed the engagement work and the date such work was completed; and
3. Who reviewed the engagement work performed and the date and extent of such review.

The assurance practitioner shall document discussions of significant matters with the responsible party and others, including the nature of the significant matters discussed, and when and with whom the discussions took place. (Ref: Para. A164)

Quality Management

The assurance practitioner shall include in the engagement documentation:

1. Issues identified with respect to compliance with relevant ethical requirements and how they were resolved;
2. Conclusions on compliance with independence requirements that apply to the engagement, and any relevant discussions with the assurance practitioner’s firm that support these conclusions;
3. Conclusions reached regarding the acceptance and continuance of client relationships and assurance engagements; and
4. The nature and scope of, and conclusions resulting from, consultations undertaken during the course of the engagement.

Matters Arising after the Date of the Assurance Report

If, in exceptional circumstances, the assurance practitioner performs new or additional procedures or draws new conclusions after the date of the assurance report, the assurance practitioner shall document: (Ref: Para. A165)

1. The circumstances encountered;
2. The new or additional procedures performed, evidence obtained, and conclusions reached, and their effect on the assurance report; and
3. When and by whom the resulting changes to engagement documentation were made and reviewed.

Assembly of the Final Engagement File

The assurance practitioner shall assemble the engagement documentation in an engagement file and complete the administrative process of assembling the final engagement file on a timely basis after the date of the assurance report. After the assembly of the final engagement file has been completed, the assurance practitioner shall not delete or discard engagement documentation of any nature before the end of its retention period. (Ref: Para. A166)

In circumstances other than those envisaged in paragraph 95 where the assurance practitioner finds it necessary to modify existing engagement documentation or add new engagement documentation after the assembly of the final engagement file has been completed, the assurance practitioner shall, regardless of the nature of the modifications or additions, document:

1. The specific reasons for making them; and
2. When and by whom they were made and reviewed.

For those engagements for which an engagement quality review is required in accordance with ASQM 1 or the firm’s policies or procedures, the lead assurance practitioner shall discuss significant matters and significant judgements arising during the engagement with the engagement quality reviewer, and not date the assurance report until completion of that review.^[20] (Ref: Para. A167)

The assurance practitioner shall form a conclusion about whether the assurance practitioner has obtained reasonable or limited assurance, as appropriate, about the water accounting statements, note disclosures and accountability statement included in the general purpose water accounting report. That conclusion shall take into account the requirements of paragraphs 64 and 100-102 of this Standard.

This evaluation shall include consideration of the qualitative aspects of the quantification approaches and reporting practices, including indicators of possible bias in judgements and decisions in the making of estimates and in preparing the general purpose water accounting report,^[21] and whether, in view of the applicable criteria:

1. The quantification approaches and reporting policies selected and applied are consistent with the applicable criteria and are appropriate;
2. Estimates made in preparing the report are reasonable;
3. The information presented is relevant, reliable, complete, comparable and understandable;
4. There is adequate disclosure of the applicable criteria, and other matters, including uncertainties, such that intended users can understand the significant judgements made in its preparation; and (Ref: Para. A22, A168-A170)
5. The terminology used in the general purpose water accounting report is appropriate.

The evaluation required by paragraph 100L-100R shall also include consideration of:

1. The overall presentation, structure and content of the general purpose water accounting report; and
2. When appropriate in the context of the criteria, the wording of the assurance conclusion, or other engagement circumstances, whether the general purpose water accounting report represents the underlying water assets and water liabilities, changes in water assets and water liabilities and water flows in a manner that achieves fair presentation.

The assurance report shall include, at a minimum, the following basic elements: (Ref: Para. A171)

1. A title that clearly indicates the report is an independent assurance report.
2. An addressee.
3. An identification or description of the level of assurance, either reasonable or limited, obtained by the assurance practitioner.
4. Identification of the general purpose water accounting report, including the period(s) it covers, and, if any information in that report is not covered by the assurance practitioner’s conclusion, clear identification of the information subject to assurance as well as the excluded information, together with a statement that the assurance practitioner has not performed any assurance procedures with respect to the excluded information and, therefore that no conclusion on it is expressed. (Ref: Para. A172)
5. Identification of the responsible party and their responsibilities. (Ref: Para. A11-A13)
6. A statement that the quantification of water assets, water liabilities and changes in water assets and water liabilities is subject to inherent uncertainty. (Ref: Para. A48-A52)
7. Identification of the applicable criteria, and;
   1. Identification of how those criteria can be accessed;
   2. If those criteria are available only to specific intended users, or are relevant only to a specific purpose, a statement alerting readers to this fact and that, as a result, the general purpose water accounting report may not be suitable for another purpose. The statement shall also restrict the use of the assurance report to those intended users or that purpose; and (Ref: Para. A173-A174)
   3. If established criteria need to be supplemented by additional note disclosures for those criteria to be suitable, identification of the relevant note(s).
8. A statement that the firm of which the assurance practitioner is a member applies ASQM 1, or other professional requirements, or requirements in law or regulation, that are at least as demanding as ASQM 1. If the assurance practitioner is not a professional accountant, the statement shall identify the professional requirements, or requirements in law or regulation, applied that are at least as demanding as ASQM 1.
9. A statement that the assurance practitioner complies with relevant ethical requirements related to assurance engagements, or other professional requirements, or requirements imposed by law or regulation, that are at least as demanding.^[22]
10. A description of the assurance practitioner’s responsibility, including:
    1. A statement that the engagement was performed in accordance with ASAE 3610 Assurance Engagements on General Purpose Water Accounting Reports or AWAS 2 Assurance Engagements on General Purpose Water Accounting Reports, as applicable.
    2. An informative summary of the work performed as a basis for the assurance practitioner’s conclusion. In the case of a limited assurance engagement, an appreciation of the nature, timing and extent of procedures performed is essential to understanding the practitioner’s conclusion. In a limited assurance engagement, the summary of the work performed shall state that: (Ref: Para. A7 and A175-A177)
       • The procedures performed in a limited assurance engagement vary in nature and timing from, and are less in extent than for, a reasonable assurance engagement; and
       • Consequently, the level of assurance obtained in a limited assurance engagement is substantially lower than the assurance that would have been obtained had a reasonable assurance engagement been performed.
11. The assurance practitioner’s conclusion: (Ref: Para. A178-A191)
    1. In a reasonable assurance engagement, the conclusion shall be expressed in a positive form: or
    2. In a limited assurance engagement, the conclusion shall be expressed in a form that conveys whether, based on the procedures performed and evidence obtained, a matter(s) has come to the assurance practitioner’s attention to cause the assurance practitioner to believe that the general purpose water accounting report is not prepared, in all material respects, in accordance with the applicable criteria.
    3. When the assurance practitioner expresses a modified conclusion, the assurance report shall contain:
       1. A section that provides a description of the matter(s) giving rise to the modification; and
       2. A section that contains the assurance practitioner’s modified conclusion.
12. The assurance practitioner’s signature. (Ref: Para. A192)
13. The date of the assurance report. The assurance report shall be dated no earlier than the date on which the assurance practitioner has obtained the evidence on which the assurance practitioner’s conclusion is based, including evidence that those with the recognised authority have asserted that they have taken responsibility for the general purpose water accounting report.
14. The location where the assurance practitioner practices.

Emphasis of Matter Paragraphs and Other Matter Paragraphs

If the assurance practitioner considers it necessary to: (Ref: Para. A193-A198)

1. Draw intended users’ attention to a matter presented or disclosed in the general purpose water accounting report that, in the assurance practitioner’s judgement, is of such importance that it is fundamental to intended users’ understanding of the general purpose water accounting report (an Emphasis of Matter paragraph); or
2. Communicate a matter other than those that are presented or disclosed in the general purpose water accounting report that, in the assurance practitioner’s judgement, is relevant to intended users’ understanding of the engagement, the assurance practitioner’s responsibilities or the assurance report (an Other Matter paragraph),

the assurance practitioner shall do so in a paragraph in the assurance report, with an appropriate heading, that clearly indicates the assurance practitioner’s conclusion is not modified in respect of the matter.

The assurance practitioner shall communicate to those charged with governance the following matters that come to the assurance practitioner’s attention during the course of the engagement, and shall determine whether there is a responsibility to report them to another party(or parties):

1. Deficiencies in internal control that, in the assurance practitioner’s professional judgement, are of sufficient importance to merit attention;
2. Identified or suspected fraud; and
3. Matters involving non-compliance with law or regulation, other than when the matters are clearly trivial. (Ref: Para. A79)