ED ISSA 5000 examinable document Sept 2024 – June 2025

You should READ the article in full and make your own notes of the key points, for example:

Here are the key bullet points summarizing the article on general requirements for sustainability assurance engagements:

Rising Demand for Sustainability Reporting: Shareholders and institutional investors are increasingly demanding detailed information to evaluate the environmental and social impacts of organizations, leading to more extensive sustainability disclosures.

Need for Independent Assurance: There is a growing need for independent assurance on sustainability information, exemplified by the EU’s Corporate Sustainability Reporting Directive requiring organizations to report and obtain assurance on sustainability data.

Commercial Opportunity and Challenges for Assurance Providers: The increased demand for assurance services presents commercial opportunities but also challenges, particularly in maintaining ethical standards and managing quality assurance.

ISSA 5000 (ED) Overview: The proposed ISSA 5000 (ED) standard by the IAASB is designed to be a comprehensive, profession-agnostic standard applicable to any sustainability assurance engagement, across multiple reporting frameworks.

Multiple Frameworks Compatibility: ISSA 5000 (ED) can be applied under various sustainability reporting frameworks like the Global Reporting Initiative, Integrated Reporting, and local regulations like the European Sustainability Reporting Standards (ESRS).

Use by Non-Accountancy Professionals: The standard is accessible to non-accountants such as environmental experts or scientists, provided they adhere to ethical requirements and maintain a rigorous quality management system.

Definition and Scope of Sustainability Matters: ISSA 5000 (ED) covers a broad range of sustainability matters including environmental, social, economic, and cultural impacts, with detailed examples like climate, energy, water, biodiversity, labor practices, and economic impacts.

Objectives of ISSA 5000 (ED): The standard aims to obtain assurance that sustainability information is free from material misstatement, to express a written conclusion, and to communicate further as required.

Engagement Acceptance and Planning: Assurance practitioners must evaluate pre-conditions, understand the scope of work, and determine the level of assurance. They must also assess risks, including fraud, and plan engagements thoroughly.

Ethical Considerations and Professional Scepticism: Assurance providers must adhere to ethical codes, exercise professional scepticism, and document their processes to mitigate risks such as greenwashing and ensure accurate, reliable sustainability reporting.