Through an integrated internal control environment based on an integrated mindset, companies will achieve greater connectivity of functions, processes and systems leading to enhanced data quality to improve decision making on strategy, risk, opportunity management and governance-related matters. This is the foundation for transitioning to a more sustainable business model and enhancing investor and stakeholder confidence in sustainability performance.
To implement the International Sustainability Standards Board’s (ISSB’s) standards and jurisdictional standards and regulatory requirements, organizations must ensure effective oversight arrangements to deliver high quality, cost effective and decision useful reporting. As reporting and assurance of sustainability-related disclosure evolves, audit committees have a critical role to play in expanding their existing oversight responsibilities for financial reporting and compliance to sustainability-related disclosures.
Because many professional accountants serve on and are accountable to audit committees, the International Federation of Accountants (IFAC), has released Key Questions for Audit Committees Overseeing Sustainability-Related Disclosureto prepare audit committees with effective questions to ask when overseeing sustainability and ESG related disclosures.
The key questions for audit committees cover:
Roles and responsibilities across the organization
Data collection, processes and controls
What’s being reported?
Audit and assurance
“Professional accountants serving on boards and audit committees play critical roles in the oversight of sustainability-related disclosures, and this release will help prepare audit committees step up their roles to advance sustainability,” said Kevin Dancey, IFAC CEO. “We also encourage professional accountancy organizations (PAOs) to utilize these key questions to help their members stay up to date with, and prepare for, expanding oversight responsibilities in relation to sustainability.”
About IFAC IFAC is the global organization for the accountancy profession dedicated to serving the public interest by strengthening the profession and contributing to the development of strong international economies. IFAC is comprised of 180 members and associates in 135 countries and jurisdictions, representing more than 3 million accountants in public practice, education, government service, industry, and commerce.
IFAC releases new placemat to guide audit committees to oversee sustainability-related disclosure
