Page 355 - CA Final Audit Titanium Full Book. (With Cover Pages)

CA Ravi Taori

Further ICAI's Initiatives
- ICAI issued SSAE 3410 on Greenhouse Gas Statements.
- It includes assurance of BRSR.
Methodology to provide assurance on BRSR:
Preliminary Review of ESG report, parameters
On-site Assessment / Verification of ESG Report
Issuance of Assessment Report and Assessment Statement
Review of the responses and clarifications on the findings
Submission of findings of the onsite assessment and document review
Preparation of Assessment / Verification report including final results of Assessment/ Recommendation:

(CNO SDG.200) Social Audit Standards
Social Audit Standards by SRSB
- SRSB of ICAI & Aim: The Sustainability Reporting Standards Board (SRSB) of the ICAI has issued Social
Audit Standards (SAS 100 to 1600). These Standards provide guidance to the Social Auditor for impact
assessment of Social Enterprises and the necessary audit procedures.
- Requirements for Assessment: The Standard outlines the minimum requirements for conducting impact
assessment. Laws or regulations may establish additional requirements to be followed.

(CNO SDG.220) Role of Auditor - Consideration Of Climate Related Risks In An Audit Of Financial
Statements
- Auditor's Objective & Stakeholder Expectations: The auditor seeks assurance that financial statements are
free from material misstatement, enabling them to report if the statements are fairly presented according to the
financial reporting framework. Investors seek information on how climate risks were addressed in the audit.
Auditors face pressure for transparency but must adhere to auditing standards.
- Understanding Climate Risks: In understanding an entity, the auditor considers climate-related risks,
especially in sectors like banks, insurance, energy, transportation, and agriculture.
- Auditor's Report Significance & Emphasis on Disclosures: The auditor’s report communicates about the
audit, the auditor’s responsibilities, and significant matters addressed. The Emphasis of matter paragraph draws
attention to crucial disclosures. The auditor checks if the entity disclosed climate-related information as per the
relevant financial reporting framework.
- Consistency & Other Information: The auditor ensures consistency in information disclosed in financial
statements and other public communications. This is mandated by ISA 720 and SA 720.
Momentum and Uniformity
- Sustainability reporting gains momentum globally with demands from stakeholders and efforts toward a
uniform set of standards.
- Uniformity is hindered by a lack of a common language.
Trends and Demand in Reporting
- Reporting of sustainability information is a growing global trend, increasing the demand for its independent
assurance.
- Entities seek to enhance the integrity of their sustainability reporting.
- The demand for assurance on “sustainability branded” reporting rises.
Assurance Professionals' Role
- Auditors must understand the current landscape and monitor developments.
- There's an urgent need for accepted global sustainability/ ESG assurance standards.

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