This proposed section, Part 10, Audits of Group Financial Statements,is intended to form part of the proposed International Standard on Auditing for Audits of Financial Statements of Less Complex Entities (ISA for LCE) when finalized. Group audits were not included in the scope of the original Exposure Draft of the ISA for LCE.
The current sustainability reporting and assurance landscape is rapidly evolving, with important stakeholders showing an increased interest in sustainability-related corporate reporting information. Trust in such reporting is a key issue for many stakeholders, in particular investors who are increasingly using this information for capital allocation and other decisions.
Assurance over sustainability-related information is not something new; however, the importance placed on the reliability of such information is radically increasing, suggesting that a new era of sustainability reporting and assurance is emerging.
Tom Seidenstein seems drawn to challenges. Before becoming chairperson of the International Auditing and Assurance Standards Board (IAASB) he worked at Fannie Mae. An institution at the heart of the global financial crisis.
“A key theme from IAASB, to Fannie Mae, to the role I played at the IFRS Foundation from its founding to 2011 - is this idea of efficient markets. They require high-quality reporting supported by assurance and audit so that capital is allocated efficiently and increasingly with the eye towards greater sustainability.”
