The International Public Sector Accounting Standards Board (IPSASB), developer of IPSAS®, international accrual-based accounting standards for use by governments and other public sector entities around the world, received strong overall engagement and feedback from stakeholders globally on the proposals in its recent Consultation Paper (CP), Advancing Public Sector Sustainability Reporting. The IPSASB launched its global consultation on developing a sustainability reporting framework for the public sector in May 2022 in response to stakeholder encouragement, including from the World Bank, and the consultation closed September 9, 2022.

The CP identified the drivers for public sector sustainability reporting as:

• Global public interest;
• Major economic, environmental, social and governance impacts; and
• Capital markets significance.

A motivating factor behind the IPSASB’s launch of the CP was that global public sector specific sustainability reporting guidance is needed because of challenges in applying private sector guidance for public sector reporting given the differences in focus. With its many years of experience working with other global standard setters, including the International Accounting Standards Board to maximize alignment with its public sector guidance, the IPSASB therefore proposed in the CP that its experiences, processes and relationships would enable it to develop the necessary guidance efficiently and effectively.

An overview of the feedback received over the course of the open consultation, collected through the IPSASB’s regional roundtables and from written submissions, was presented at the IPSASB’s Public Sector Standard Setters Forum this week hosted by the Order of Certified Accountants (OCC) in Cascais, Portugal, attended by more than 100 delegates from 36 jurisdictions. In addition to supporting the main proposals, the feedback strongly encouraged collaboration between IPSASB and other international standard setters, particularly the International Sustainability Standards Board (ISSB) and the Global Reporting Initiative (GRI), in using its current processes to ensure that new guidance addresses public sector needs while maximizing consistency with sustainability frameworks globally.

IFRS Foundation Executive Director, Mr. Lee White, and GRI Chief Standards Officer, Mr. Bastian Buck, addressed the Forum, and both expressed a willingness by their organizations to collaborate with the IPSASB if it decides to take forward its public sector sustainability reporting initiative.

The IPSASB will continue to analyze the written submissions in detail, and to progress discussions with key stakeholders, including potential funders, in order to decide at its December 2022 meeting on whether to proceed in 2023 with the development of public sector sustainability reporting guidance.

Taxpayers’ attitudes about paying taxes correlate closely with perceived levels of corruption, according to a major new study, Public Trust in Tax, by accountancy bodies ACCA and the International Federation of Accountants (IFAC). A survey of 5,900 people across 14 countries – many in developing economies – found that trust in tax systems is lower when taxpayers perceive higher levels of corruption and diversion of public funds.

Helen Brand, chief executive ACCA, says: ‘Fighting corruption is such a central priority for the global accountancy profession because corruption has such negative implications for trust, tax morale and sustainable development more broadly. We know from research by the IMF that economic growth goes hand in hand with a consistent stream of tax revenues.’

This year’s survey builds on previous research, and for the first time includes data from developing countries outside of the G20. With the UN predicting that the highest population growth up to 2050 is set to happen in non-G20 countries, this edition of Public Trust in Tax looks at issues impacting an increasing share of the global population. The survey was backed up by a series of roundtables to explore attitudes further.

Kevin Dancey, chief executive IFAC, says: ‘The relationship between taxpayers and governments, and between businesses, society and tax systems is fundamental to the sustainability – and survival – of the economies that support us all, in both the short and long term. Our Trust in Tax surveys provide crucial insight into these relationships and can help global policymakers as they consider the best way forward.’

IFAC recently released its Action Plan for Fighting Corruption and Economic Crime, with broad support from the global accountancy profession. The plan outlines specific actions that members of the profession can take, individually and in concert, to engage in a meaningful way in the fight against corruption. ‘Given the correlation between perceived levels of corruption and citizens’ willingness to pay taxes, this plan is an important effort to help ensure that citizens see the benefits of their tax dollars,’ said Mr. Dancey.

Key results
The survey key findings are set out below:

Trust and corruption
Politicians are widely distrusted with a net trust deficit of -25%. In contrast professional tax accountants and lawyers are trusted (67.1% and 64.6% respectively). Attitudes to tax authorities are split with a significant minority – 27.9% – distrusting or highly distrusting them.

Roundtable participants saw lack of trust in politicians as a major barrier to tax engagement with the systems. Citizens don’t object to paying tax - they object to misappropriation.

Tax minimisation
In the survey 46.4% agreed that multinationals were paying a reasonable amount of tax. This contrasts with Public Trust in Tax surveys in G20 countries showing only 22.4% agreed.

Attitudes towards tax minimisation are more relaxed in developing countries with respondents more likely to agree that specific taxpayer groups were paying a reasonable amount of tax.

Incentives
People strongly support the use of tax incentives to target megatrends such as climate change (73.8%) and ageing population (72.8%).

Tax incentives were seen as way of attracting multinational businesses to invest (73.9%) and build a more coherent international tax system through co-operation between countries (69.3%)

Author of the report Jason Piper says: ‘An efficient, effective and trusted tax administration is one building block in the sound structure of society. This survey shows that the problem lies not with the collecting of tax but what happens afterward. A lack of accountability in government spending fosters the perception – and all too often the reality – of corruption in government.’

Since 2017 ACCA and IFAC have been gathering data across the G20 on attitudes and opinions of the general public. The latest survey is the first to look beyond the G20 and comes at a crucial time for economies across the globe, given uncertainty following Russia’s invasion of Ukraine and the Covid-19 pandemic.

Read Public Trust in Tax: Global Perspectives 2022 

For media enquiries, contact:
ACCA News Room
E: newsroom@accaglobal.com
Twitter: @ACCANews
accaglobal.com

IFAC
Jennifer DiClerico
Director, Head of Communications
E: jenniferdiclerico@ifac.org
Twitter: @IFAC
ifac.org

About ACCA
ACCA (the Association of Chartered Certified Accountants) is the global body for professional accountants.

We’re a thriving global community of 240,000 members and 541,000 future members based in 178 countries and regions, who work across a wide range of sectors and industries. We uphold the highest professional and ethical values.

We offer everyone everywhere the opportunity to experience a rewarding career in accountancy, finance and management. Our qualifications and learning opportunities develop strategic business leaders, forward-thinking professionals with the financial, business and digital expertise essential for the creation of sustainable organisations and flourishing societies.

Since 1904, being a force for public good has been embedded in our purpose. In December 2020, we made commitments to the UN Sustainable Development Goals which we are measuring and will report on in our annual integrated report.

We believe that accountancy is a cornerstone profession of society and is vital helping economies, organisations and individuals to grow and prosper. It does this by creating robust trusted financial and business management, combating corruption, ensuring organisations are managed ethically, driving sustainability, and providing rewarding career opportunities.

And through our cutting-edge research, we lead the profession by answering today’s questions and preparing for the future. We’re a not-for-profit organisation. Find out more at accaglobal.com

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 jurisdictions, representing more than 3 million accountants in public practice, education, government service, industry, and commerce.

The International Auditing and Assurance Standards Board (IAASB) and International Ethics Standards Board for Accountants (IESBA) welcome today's announcement from the International Organization of Securities Commissions (IOSCO) of its support and encouragement for the IAASB’s and IESBA’s work on developing standards relating to assurance of sustainability-related information. The IAASB and IESBA acknowledge that stakeholders areincreasingly seeking assurance of sustainability-related information and that it is important to respond to market demands with robust standards applicable to all sustainability assurance providers.

IAASB Chair Tom Seidenstein said: “There is a clear need for ongoing dialogue and collaboration to ensure sustainability reporting, assurance, and regulation develop in a cohesive manner to provide decision-useful information to stakeholders. We are pleased to have IOSCO’s support for our ongoing work to enhance sustainability assurance standards and look forward to continuing our strong, fruitful relationship with IOSCO and others.”

IESBA Chair Gabriela Figueiredo Dias said: “Ethics standards, including independence requirements, are foundational to public trust in the assurance of sustainability-related information. It is crucial and in the public interest that all assurance providers, whether or not they are from the accountancy profession, adhere to the same high bar of ethical behavior and independence when engaged in such assurance work. We have given high priority to bringing to market fit-for-purpose ethics and independence standards in this area and look forward to close coordination with IOSCO and IAASB on this journey.”

The IAASB meets this week to continue discussions and vote on its sustainability assurance project proposal to develop an overarching standard for assurance engagements on sustainability. The standard will provide a global baseline for all professional assurance providers providing assurance on any sustainability information being reported, if the preconditions necessary for effective assurance are met.

The IESBA meets this week to consider possible approaches to standard setting in relation to sustainability assurance and sustainability reporting, recognizing that professional accountants in business play a “first line of defense” role in preparing and presenting trustworthy sustainability information. The IESBA will also consider the applicability of its standards to assurance providers outside of the accountancy profession. The IESBA anticipates approving a project plan by December 2022.

The IAASB and IESBA will continue to closely collaborate with IOSCO and other regulatory and standard-setting bodies to inform the development of robust standards that foster independent, high-quality engagements and globally consistent practices.

About the IAASB
The International Auditing and Assurance Standards Board 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.

About the IESBA
The International Ethics Standards Board for Accountants (IESBA) is an independent global standard-setting board. The IESBA serves the public interest by setting ethics standards, including auditor independence requirements, which seek to raise the bar for ethical conduct and practice for all professional accountants through a robust, globally operable International Code of Ethics for Professional Accountants (including International Independence Standards).

The IESBA believes a single set of high-quality ethics standards enhances the quality and consistency of services provided by professional accountants, thus contributing to public trust and confidence in the accountancy profession. The IESBA sets its standards in the public interest with advice from the IESBA Consultative Advisory Group (CAG) and under the oversight of the Public Interest Oversight Board (PIOB).

Today, the International Federation of Accountants (IFAC) issued its action plan to enhance the accountancy profession's contribution to, and support of, a robust anti-corruption ecosystem encompassing a diverse array of participants and policies. The Action Plan for Fighting Corruption and Economic Crime sets out more than 30 specific actions for IFAC and the accountancy profession related to education, evidence-based policy, global standards, partnership, and thought leadership.

“Corruption and related economic crimes, such as money laundering, bribery, tax evasion and fraud, are significant obstacles to economic growth and human development and, ultimately, to achieving the UN Sustainable Development Goals—all seventeen of them,” said IFAC CEO Kevin Dancey. “Our Action Plan illustrates some time tested and some new ways that make it clear that the global accountancy profession is a central ally in the fight. We look forward to working with our member organizations and other partners to make a real difference and drive positive change.”

The Action Plan embodies an enhanced commitment by the accountancy profession to fighting corruption, as well as economic crime more broadly. It harnesses the profession’s reach across public practice, business, and the public sector to both contribute directly to the fight against corruption and indirectly by supporting integrity and transparency in business and government, as well as effective global and domestic policymaking.

The Action Plan was developed with extensive engagement across IFAC’s 180 member organizations, as well as our advisory groups, network partners, and other key global organizations. Taking inspiration from the International Bar Association’s (IBA) Anti-Corruption Strategy for the Legal Profession, the Action Plan was developed in close coordination with the IBA, with whom we will continue to coordinate to help bring increased energy to this important work.

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 jurisdictions, representing more than 3 million accountants in public practice, education, government service, industry, and commerce.

• 65 organizations today endorse a joint statement calling for stronger alignment of regulatory and standard-setting efforts around sustainability disclosure. 
• They encourage major actors, including the International Sustainability Standards Board (ISSB), the US Securities Exchange Commission (SEC) and the European Financial Reporting Advisory Group (EFRAG) to continue to work closely together.  
• Capital market participants are supportive of establishing a global baseline of sustainability disclosure requirements, on top of which local jurisdictions can add their own interoperable reporting requirements. 
• Find the full text of the endorsed statement here.

Sixty-five companies, investors and professional accounting firms from across the world add their voices to the call for major standard-setting efforts to more closely align with and support a global baseline for reporting sustainability-related information.

The endorsed statement was developed jointly by the World Business Council for Sustainable Development (WBCSD), the Principles for Responsible Investment (PRI), and the International Federation of Accountants (IFAC). In addition to formal consultation responses, this public statement makes clear the momentum and encouragement behind stronger alignment between sustainability standard-setting efforts.

Significant efforts by the International Sustainability Standards Board (ISSB), the US Securities and Exchange Commission (SEC), and the European Commission together with the European Financial Reporting Advisory Group (EFRAG), all aim to address the need to enhance and evolve corporate reporting to include and consider sustainability information. However, current draft standards and initiatives are not technically compatible in terms of concepts, terminologies, and metrics.

As these proposed sustainability-related disclosure requirements are refined and finalized, leading financial market participants are asking financial market regulators to avoid regulatory and standard setting fragmentation by aligning on key concepts, terminologies, and metrics on which disclosure requirements are built.

A comprehensive global baseline of sustainability disclosures is required for reporting entities to avoid undue burden and for investors to make investment decisions that truly contribute to sustainable outcomes.

A globally consistent, comparable, reliable, and assurable corporate reporting system is indispensable in providing all stakeholders with a clear and accurate picture of an organization’s ability to create sustainable value over time.

The endorsed statement released today is signed by:  

• Achmea Investment Management
• ADM
• Arçelik Global
• Assicurazioni Generali
• Ayala Corporation
• Baloise Asset Management
• BCSD Taiwan X Taiwan Sustainable Finance Platform
• BDO
• Beach Point Capital Management
• Borealis Group
• Boston Trust Walden
• Brunel Pension Partnership
• Bühler Group                                                                                                    
• Calvert Research and Management
• CentraRSE
• Dalton Investments
• Dana Investment Advisors
• DBS Group
• de Pury Pictet Terrettini
• Deloitte
• Desjardins Global Asset Management
• DNV
• East Capital Group
• Ecofi
• EFG Asset Management
• EmergeVest
• Empresas CMPC S.A.
• ENI S.p.A.
• Equitile Investments
• Ernst & Young Global Limited
• Etica Funds – Responsible Investments
• Future Super
• GAM Investments
• Grant Thornton International, Ltd.
• Hewlett Packard Enterprise
• HÖ Sabanci Holding
• Holcim Ltd
• Honda Motor Co., Ltd.
• Ingka Group
• Investment Management Corporation of Ontario
• Kieger
• KPMG International
• Lyrical Asset Management
• Mercedes-Benz Group AG
• Nestlé
• Newton Investment Management
• Northern Ireland Local Government Officers’ Superannuation Committeee
• Octagon Credit Investors
• Öhman Fonder
• Olam Food Ingredients
• Pegaso Pension Fund
• Perennial Investment Management
• PKA
• PwC
• Rathbones Group
• Resona Asset Management
• Responsible Investment Association Australia
• Royal DSM
• SABIC
• SCG
• Shell plc
• STAR Capital Partnership
• Swisscanto by Zürcher Kantonalbank
• Tareno AG
• Webster Equity Partners
• Wespath Benefits and Investments

Find the full text of the endorsed statement here and a PDF version of the statement here.

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 jurisdictions, representing more than 3 million accountants in public practice, education, government service, industry, and commerce.

About PRI
The Principles for Responsible Investment (PRI) is the world’s leading proponent of responsible investment. Supported by the United Nations, it works to understand the investment implications of environmental, social and governance (ESG) factors and to support its international network of investor signatories in incorporating these factors into their investment and ownership decisions. The PRI acts in the long-term interests of its signatories, of the financial markets and economies in which they operate and ultimately of the environment and society as a whole. Launched in New York in 2006, the PRI has grown to more than 5,000 signatories, managing over US$121 trillion. For more information visit www.unpri.org

About the World Business Council for Sustainable Development (WBCSD)  
WBCSD is the premier global, CEO-led community of over 200 of the world’s leading sustainable businesses working collectively to accelerate the system transformations needed for a net zero, nature positive, and more equitable future. We do this by engaging executives and sustainability leaders from business and elsewhere to share practical insights on the obstacles and opportunities we currently face in tackling the integrated climate, nature and inequality sustainability challenge; by co-developing “how-to” CEO-guides from these insights; by providing science-based target guidance including standards and protocols; and by developing tools and platforms to help leading businesses in sustainability drive integrated actions to tackle climate, nature and inequality challenges across sectors and geographical regions. 

Our member companies come from all business sectors and all major economies, representing a combined revenue of more than USD $8.5 trillion and 19 million employees. Our global network of almost 70 national business councils gives our members unparalleled reach across the globe. Since 1995, WBCSD has been uniquely positioned to work with member companies along and across value chains to deliver impactful business solutions to the most challenging sustainability issues.

Together, we are the leading voice of business for sustainability, united by our vision of a world in which 9+ billion people are living well, within planetary boundaries, by mid-century. 

www.wbcsd.org 

Follow us on Twitter and LinkedIn  

To achieve net-zero commitments and climate neutrality requires robust climate transition planning that provides the basis for strategic decision-making, fulfills investors’ reporting needs, and allows asset owners and managers to efficiently allocate capital and mobilize resources. 

To better understand how finance leads are enabling their organization’s decarbonization strategies and transition planning and what obstacles they’re facing, IFAC and A4S are partnering to host a Climate Week NYC event on September 21, Finance Leaders Plugging the Net-Zero Information Gap: Exploring the critical role of CFOs and finance teams in the climate transition. 

This event will be a panel discussion moderated by Jessica Fries, Executive Chair, A4S, and feature:  

• Shamsul Bahar, VP & Group Financial Controller, PETRONAS
• Patti Humble, IMA Board Member, and Chief Accounting Officer, UPS  
• Kee Chan Sin, Assistant Treasurer - Capital Markets & Corporate Finance, Verizon 
• Swami Venkataraman, Associate Managing Director, ESG, Moody’s   
• Jing Zhang, Head of Climate Research, IFRS Foundation

 “Making climate a priority is one step at the beginning of a long journey towards achieving net-zero that will be different for each organization,” said IFAC CEO Kevin Dancey. “The professional accountant’s ability to translate risks and opportunities into numbers and actions will be an essential component of developing and achieving climate transition plans necessary to meet critical climate commitments.”  

Register now to join the virtual event September 21 at 9am ET. A recording will be available online after the event.

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 jurisdictions, representing more than 3 million accountants in public practice, education, government service, industry, and commerce. 

About A4S 

Accounting for Sustainability (A4S) was established by HRH The Prince of Wales in 2004. Our aim is to transform finance to make sustainable business, business as usual. 

As key enablers of successful organizations, the career paths open to professional accountants span business and the public sector in a variety of finance and commercial-facing roles. As digital and sustainability transformations progress internationally, professional accountants have an opportunity to elevate their strategic contributions as leaders and value partners.  

IFAC’s new collection of resources, Professional Accountants as Business Leaders and Value Partners, explores how professional accountants can be future ready, data-savvy leaders who drive sustainability. These materials aim to help in understanding and navigating challenges and opportunities across various roles as finance and business leaders, risk managers and analysts, and in broader commercial roles including in procurement and supply chain management. 

Components of the new resource center include:

• Mainstreaming Sustainability in Business 
• Future-Ready CFO and Finance Function 
• Data and Digitalization 
• Case studies from a variety of entities around the world including Olam Agri, Reliance Industries, Standard Chartered Bank, Sime Darby Berhad, OMRON, Prudential Financial, Pakistan International Airlines, and more

Explore Professional Accountants as Business Leaders and Value Partners

• 58% of global companies obtained ESG assurance in 2020
• Assurance engagements were mostly limited in scope
• 61% of ESG assurance services were performed by professional accounting firms, with substantial variation in practice within different jurisdictions

The number of global companies obtaining independent assurance on their environmental, social and governance (ESG) information increased from 51% to 58% in 2020, compared to the previous year, according to new data from the International Federation of Accountants (IFAC), American Institute of CPAs (AICPA) and Chartered Institute of Management Accountants (CIMA), the latter two of which represent the unified voice of the Association of International Certified Professional Accountants.

The 2020 information released today is an update to the accounting bodies’ inaugural study last year that examined global trends in both sustainability-related reporting and its assurance. This latest update offers the first benchmark of progress relative to the original data. A follow-up study that incorporates 2021 information is expected to be released at a later date.

When it comes to ESG assurance, 82% of engagements were limited in scope in 2020, essentially the same as in 2019 (83%). Some 61% of assurance engagements were performed by audit firms on a global basis, a slight decline from the previous year (63%). Jurisdictions with some of the highest rates of assurance performed by professional accountants include Australia, France, Italy, Germany and Spain. In other countries, including South Korea, the United Kingdom and the United States, most assurance engagements are conducted by service providers outside of the accountancy profession. Professional accountants have high professional standards, including independence, and are subject to regulatory oversight, which is critical in this space.

On the reporting side, the study found 92% of global companies provided some ESG data to investors, either through integrated, annual or standalone reports. The use of, or reference to, Sustainability Accounting Standards Board (SASB) standards more than doubled in 2020. This is important because new disclosure proposals from the International Sustainability Standards Board (ISSB) include and build upon SASB standards. (SASB’s parent organization, The Value Reporting Foundation, will consolidate into the IFRS Foundation on Aug. 1, 2022, to support the work of the ISSB.)

“It’s encouraging to see continued high levels of reporting on sustainability information and an overall increase in assurance globally,” said IFAC CEO Kevin Dancey. “But our research tells us that 80% of companies are using multiple frameworks or standards, which results in data that is not consistent, comparable or decision-useful for investors, stakeholders or society at large. Sustainability reporting and assurance will only reach its full potential when it is based on a harmonized global system led by the International Sustainability Standards Board’s comprehensive baseline of disclosure.”

The 2020 study data also shows 89% of companies presented at least some information in each of four categories: greenhouse gasses, other environmental factors, social and governance. Yet only 43% provided assurance for all four categories. The most common area for independent assurance was greenhouse gases (95%).

Seventy percent of global companies that engaged a professional accounting firm to perform the ESG assurance engagement chose the firm that audits their financial statements.

“High-quality reporting requires high-quality assurance,” said Susan S. Coffey, CPA, CGMA, AICPA & CIMA’s CEO of public accounting. “Auditors already have a holistic view of a company’s risk profile, structure and processes, so it makes sense for that firm to also engage in ESG assurance. Professionally qualified and licensed accountants have the requisite expertise, objectivity, integrity and commitment to professional standards that are essential for instilling trust in ESG reporting.”

About the Study

IFAC and AICPA & CIMA partnered with Audit Analytics to understand the state of play involving environmental, social, and governance (ESG) reporting and assurance practices on a global basis. The inaugural version of the study was published last year. This latest update reviewed data from 1,400 global companies from the G20 nations plus Hong Kong S.A.R., China and Singapore. The full methodology is referenced within the study.

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 jurisdictions, representing more than 3 million accountants in public practice, education, government service, industry, and commerce.

About the Association of International Certified Professional Accountants, and AICPA & CIMA

The Association of International Certified Professional Accountants (the Association), representing AICPA & CIMA, advances the global accounting and finance profession through its work on behalf of 689,000 AICPA and CIMA members, students and engaged professionals in 196 countries and territories. Together, we are the worldwide leader on public and management accounting issues through advocacy, support for the CPA license and specialized credentials, professional education and thought leadership. We build trust by empowering our members and engaged professionals with the knowledge and opportunities to be leaders in broadening prosperity for a more inclusive, sustainable and resilient future.

The American Institute of CPAs (AICPA), the world’s largest member association representing the CPA profession, sets ethical standards for its members and U.S. auditing standards for private companies, not-for-profit organizations, and federal, state and local governments. It also develops and grades the Uniform CPA Examination and builds the pipeline of future talent for the public accounting profession.

The Chartered Institute of Management Accountants (CIMA) is the world’s leading and largest professional body of management accountants. CIMA works closely with employers and sponsors leading-edge research, constantly updating its professional qualification and professional experience requirements to ensure it remains the employer’s choice when recruiting financially trained business leaders.

The International Auditing and Assurance Standards Board (IAASB) has issued a non-authoritative publication to address some of the common questions related to reporting going concern matters in the auditor’s report. Specifically, the publication focuses on the use of and interrelationship of the Material Uncertainty Related to Going Concern and Key Audit Matters sections, and the Emphasis of Matter paragraphs, in an auditor’s report prepared in accordance with the International Standards on Auditing (ISAs).

This publication does not amend or override the International Standards on Auditing, the texts of which alone are authoritative. Reading the publication is not a substitute for reading the ISAs.

The International Auditing and Assurance Standards Board (IAASB) has submitted a response to the International Sustainability Standards Board (ISSB) on its exposure drafts on sustainability- and climate-related disclosures. In its response, the IAASB noted the importance of reliable, high-quality, globally consistent sustainability reporting that investors and regulators are able to trust.

“The reliability and quality of sustainability reporting and supporting investors’ and regulators’ trust in the sustainability information hinge on the effectiveness of the external reporting supply chain,” noted IAASB Chair Tom Seidenstein. “As in financial reporting, external assurance has a key role in contributing to reporting reliability and investor confidence. This is why the IAASB’s feedback focuses on the ability of practitioners to obtain assurance on an entity’s sustainability reporting prepared in accordance with the ISSB draft standards, and why we’re committed to collaborating with and supporting the ISSB.”

The IAASB highlighted the value of long-term cooperation between the IAASB and ISSB, as well as the International Ethics Standards Board for Accountants, to strengthen the connectivity between sustainability reporting external sustainability assurance, and ethical standards—especially as standards become increasingly refined and enhanced. External assurance should play a crucial role in enabling organizations to demonstrate that the sustainability information reported is reliable and credible.

The IAASB has begun its journey to sustainability reporting assurance standards: at the June 2022 IAASB meeting, the IAASB committed to its next steps in developing a bespoke assurance standard for sustainability reporting. This journey to enhanced sustainability assurance standards was noted recently by the Financial Stability Board’s decision to include the IAASB’s work in its Climate Roadmap.

About the IAASB
The International Auditing and Assurance Standards Board 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.