This Australian Standard on Sustainability Assurance (ASSA) deals with assurance engagements on sustainability information.

For purposes of this ASSA, sustainability information is information about sustainability matters. An entity’s disclosures about such matters may relate to several different topics (e.g., climate, labour practices, biodiversity) and aspects of topics (e.g., risks and opportunities, metrics and key performance indicators). Law or regulation or sustainability reporting frameworks may describe sustainability matters, topics or aspects of topics in different ways, and may also provide requirements or guidance for the entity in determining the sustainability information to be reported. (Ref: Para. A1, A21–A22, A43, Appendix 1)

Sustainability information is reported in accordance with the criteria. This ASSA requires the practitioner to evaluate whether the criteria that the practitioner expects to be applied in the preparation of the sustainability information are suitable for the engagement circumstances. In the absence of indications to the contrary, framework criteria that are embodied in law or regulation or are established by authorised or recognised organisations that follow a transparent due process are presumed to be suitable. (Ref: Para. A2, A197)

The criteria may specify a process by which the entity identifies sustainability matters to be reported, including the application of materiality in identifying such matters and the reporting boundary. In this ASSA, “the entity’s process to identify sustainability information to be reported” refers to the process applied by the entity to determine the sustainability matters to be reported in the sustainability information and the reporting boundary. (Ref: Para. A3)

The scope of the assurance engagement may extend to all of the sustainability information to be reported by the entity or only part of that information. For example, some jurisdictions may require the entirety of the sustainability information to be reported in accordance with an established framework to be subject to assurance. However, in certain jurisdictions, law or regulation may require that only climate-related disclosures in an entity’s sustainability information be subject to assurance. The reporting requirements of this ASSA require the practitioner to identify or describe the information that is subject to the assurance engagement. (Ref: Para. A4)

This ASSA is premised on the basis that: (Ref: Para. A5)

1. [Deleted by the AUASB. Refer Aus 6.1.]
2. The practitioner who is performing the engagement is a member of a firm that is subject to ASQM 1^[1], or professional requirements, or requirements in law or regulation, regarding the firm’s responsibility for its system of quality management, that are at least as demanding as ASQM 1. (Ref: Para. A8–A11)

The members of the engagement team and the engagement quality reviewer (for those engagements where one has been appointed) are subject to the applicable requirements of APES 110 Code of Ethics for Professional Accountants (including Independence Standards) issued by the Accounting Professional & Ethical Standards Board Limited and the provisions in Part 5 of the International Ethics Standards for Sustainability Assurance (Including International Independence Standards) issued by the International Ethics Standards Board for Accountants and applicable legislative or other requirements, or professional requirements, or requirements in law or regulation, that are at least as demanding; and (Ref: Para. A6–A7)

Quality management within firms that perform assurance engagements, and compliance with ethical principles, including independence requirements, are widely recognised as being in the public interest and an integral part of high-quality assurance engagements. When a practitioner performs a sustainability assurance engagement in accordance with this and other ASSAs, it is important to recognise that this ASSA includes requirements that reflect the premises described in paragraph 6. (Ref: Para. A5–A11)

Subject to the exceptions in paragraph Aus 0.1, this ASSA applies to all assurance engagements on sustainability information. This ASSA applies to all types of sustainability information, regardless of how that information is presented. (Ref: Para. A12–A14)

This ASSA deals with both reasonable and limited assurance engagements. Unless otherwise stated, each requirement of this ASSA applies to both reasonable and limited assurance engagements. Because the level of assurance obtained in a limited assurance engagement is substantially lower than in a reasonable assurance engagement, the procedures the practitioner will perform in a limited assurance engagement will vary in nature and timing from, and are less in extent than for, a reasonable assurance engagement. (Ref: Para. A15)

The Framework for Assurance Engagements notes that an assurance engagement may be either an attestation engagement or a direct engagement. This ASSA deals only with attestation engagements. Therefore, references in this ASSA to "assurance engagement" or "engagement" mean an attestation engagement.

Relationship with ASAE 3000 (Revised)^[2] 

This ASSA is an overarching standard that includes requirements and application material for all elements of a sustainability assurance engagement. Accordingly, the practitioner is not required to apply ASAE 3000 (Revised) when performing the engagement.

Relationship with the Audited Financial Report

This ASSA does not address sustainability information that is required to be included in the entity’s financial report in accordance with the applicable financial reporting framework. The auditor of the entity’s financial report is required to apply the Australian Standards on Auditing to such information.

Sustainability information may be presented together with the entity’s audited financial report, for example, as a part of the entity’s annual report or in a separate document or documents accompanying the annual report. In these circumstances, the audited financial reports are considered other information for purposes of this ASSA.

Scalability

This ASSA is intended for assurance engagements on sustainability information of all entities, regardless of size or complexity. However, the requirements of this ASSA are intended to be applied in the context of the nature and circumstances of the engagement.

[Deleted by the AUASB. Refer Aus 0.3]