Extended external reporting (EER) is becoming increasingly common and there is a growing demand for assurance engagements in relation to it. The International Auditing and Assurance Standards Board (IAASB) seeks feedback on its progress in developing draft guidance in the first phase of its EER Assurance project. Public input is requested by June 21, 2019.

EER encapsulates many different forms of reporting including, but not limited to, integrated reporting, sustainability reporting and other reporting by entities about environmental, social and governance matters.

The IAASB Consultation Paper, Extended External Reporting Assurance , includes the first part of draft guidance for practitioners applying International Standard on Assurance Engagements (ISAE) 3000 (Revised), Assurance Engagements Other than Audits or Reviews of Historical Financial Information, to EER assurance engagements. Input received will assist the IAASB in continuing to develop a complete non-authoritative guidance document due to be published in the second phase of the project.

This consultation includes draft guidance covering:

• The suitability of criteria (reporting framework or standards) used to prepare the EER report;
• Preparer-developed criteria to determine the matters reported on (a preparer’s “materiality process”);
• The types of misstatements that may occur in the EER report (building assertions);
• The materiality of misstatements in the EER report;
• The preparer’s governance and internal control over its process to prepare the EER report; and
• Narrative and future-oriented information in the EER report.

The IAASB invites input on the draft guidance from all stakeholders, especially those with practical experience in this evolving area of reporting, including practitioners and other experts involved in performing engagements, preparers of EER reports, investors and other users, standard setters, and regulators.

Comments on the Consultation Paper are requested by June 21, 2019.

The IAASB’s EER Assurance project is being run with the support of the World Business Council for Sustainable Development.

About the IAASB

The IAASB develops auditing and assurance standards and guidance for use by all professional accountants under a shared standard-setting process involving the Public Interest Oversight Board, which oversees the activities of the IAASB, and the IAASB Consultative Advisory Group, which provides public interest input into the development of the standards and guidance. The structures and processes that support the operations of the IAASB are facilitated by the International Federation of Accountants (IFAC). For copyright, trademark, and permissions information, please go to permissions or contact permissions@ifac.org.

This communiqué is part of a series from the IAASB Professional Skepticism Working Group, providing updates on the IAASB’s efforts to appropriately reflect professional skepticism in its standards, together with other relevant news and information. The previous edition is available online.

Nominated by the ICAI, Sanjiv Chaudhary was appointed to the IESBA in 2019 and retired from the Board in 2023.  With over 37 years experience, Mr. Chaudhary is a Senior Advisor, Policy and Regulatory matters in a large accounting firm having international affiliation. He was a member of the ICAI Central Council from February 2013 till February 2019 and  has served on various committees including the Expert Advisory Committee, Research Committee, Accounting Standard Board, Audit & Assurance Standards Board, and International Taxes committees. He also chaired the ICAI’s Ethical Standards Board for 2018-19 year and presently a co-opted member of the said Board.

A Chartered Accountant, Mr. Chaudhary holds a Bachelor of Commerce (Hons.) from University of Delhi, India; CPA Australia; and is a registered Insolvency Professional and a Law Graduate.

Nominated by the AIPCA, Andrew Mintzer was appointed to the IESBA in 2019.

Licensed in both the US and Canada, his CPA career has spanned over 40 years. He is a principal at Hemming Morse LLC, providing forensic accounting services. Previously an audit partner with EY, he has served on three US standard-setting bodies of the AICPA: Professional Ethics Executive Committee (2014-18), Auditing Standards Board (2008-10), and Accounting Standards Executive Committee (2001-04). Mr. Mintzer joined AICPA's Board of Directors in 2021, having previously served on several of its committees and task forces. A former California Society of CPAs Chairman, he received a Bachelor of Arts and Master of Accountancy degrees from the University of South Florida.

Johanna Field, CPA, CA, is a Principal, Auditing and Assurance Standards, at Chartered Professional Accountants Canada (CPA Canada), supporting the activities of the Canadian Auditing and Assurance Standards Board. Specifically, she supports the Canadian Board in the revisions to International Standard on Auditing (ISA) 500, Audit Evidence, and determining guidance needed to support assurance on extended external reporting.

Ms. Field spent the first decade of her career with Grant Thornton LLP in audit and assurance. For six of those years, she worked in a national audit and assurance role, where she developed and delivered training, researched and wrote policy and publications, and maintained the firm's audit methodology under changing standards.

Ms. Field is a Chartered Professional Accountant (CPA) and Chartered Accountant (CA) and a member of CPA Canada and the Chartered Professional Accountants of Ontario. Ms. Field also has a bachelor’s degree in business administration from the University of Prince Edward Island (Canada).

Kai Morten Hagen became a member of the IAASB in January 2019. He was nominated by the Nordic Federation of Public Accountants (NRF).

Mr. Hagen is currently Technical Director at the Norwegian Institute of public accountants (DnR). In this role, he supports the auditing standard setting board in Norway and is responsible for DnR’s work relating to audit and assurance matters.

Prior to joining the DnR, Mr. Hagen worked 12 years at Deloitte. His experience with Deloitte included audit and assurance engagements, national office activities relating to audit and assurance in Norway, and audit and assurance methodology project at the global office.

Mr. Hagen studied accounting and auditing at BI Norwegian Business School, and qualified as a state authorized public accountant in 2004.