In September 2019, the IAASB approved ISA 315 (Revised 2019), Identifying and Assessing Risks of Material Misstatements, which includes a more robust and consistent risk identification and assessment. The revised standard sets out clarified and enhanced requirements, and enhanced application material, to support the auditor’s risk assessment process, intended to support more focused responses to the auditor’s risk assessment in accordance with ISA 330, The Auditor’s Responses to Assessed Risks.

The International Auditing and Assurance Standards Board (IAASB) has released a new Frequently Asked Questions (FAQ) publication to support implementation of the International Standard on Sustainability Assurance (ISSA) 5000, General Requirements for Sustainability Assurance Engagements.

The FAQs focus on the application of materiality in sustainability assurance engagements and are intended to promote consistent understanding and effective application of the concept under ISSA 5000.

The document explains how both reporting entities and assurance practitioners apply materiality in the context of sustainability information, including:

• Understanding the information needs of intended users of sustainability information;
• Addressing qualitative and quantitative disclosures;
• Addressing double materiality considerations, when required; and
• Considering how materiality is applied throughout the engagement to support decision-useful sustainability reporting.

The FAQs also provide explanations and illustrative examples to help stakeholders better understand the application of the concept of materiality under ISSA 5000. The new material brings together other related matters highlighted in other IAASB support materials by providing appropriate links.

The document is available on the IAASB website here: www.iaasb.org/ISSA5000

This publication complements IAASB’s existing resources and is intended to support practitioners, preparers, regulators, and other stakeholders as they implement, or prepare for the implementation of, ISSA 5000. It does not amend, override, or supersede the requirements of ISSA 5000.

About the IAASB
The International Auditing and Assurance Standards Board develops auditing, assurance, related services, and quality management standards and guidance in the public interest that support consistent performance of quality engagements. Along with the International Ethics Standards Board for Accountants, the IAASB is part of the International Foundation for Ethics and Audit. The Public Interest Oversight Board oversees IAASB and IESBA activities and the public interest responsiveness of the standards. For copyright, trademark, and permissions information, please visit Permissions.

This Frequently Asked Questions (FAQ) document supports implementation of the International Standard on Sustainability Assurance (ISSA) 5000, General Requirements for Sustainability Assurance Engagements. The FAQs focus on the application of materiality in sustainability assurance engagements and are intended to promote consistent understanding and effective application of the concept under ISSA 5000.