Overview of Responses IAASB Consultation Paper “Assurance on a GHG Statement”
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International Auditing and Assurance Standards Board Overview of Responses Overview of Responses IAASB Consultation Paper IAASB Consultation Paper “ “ Assurance on a GHG Statement” Assurance on a GHG Statement” Caithlin McCabe and Roger Simnett, Caithlin McCabe and Roger Simnett, Co-chairs – Emissions Task Force Co-chairs – Emissions Task Force New York New York 16 March 2010 16 March 2010 1 IAASB IAASB
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Overview of Responses IAASB Consultation Paper “Assurance on a GHG Statement”. Caithlin McCabe and Roger Simnett, Co-chairs – Emissions Task Force. New York. 16 March 2010. IAASB. Outline. Background Who responded What they said Our tentative conclusions Proposed timetable. - PowerPoint PPT Presentation
Transcript of Overview of Responses IAASB Consultation Paper “Assurance on a GHG Statement”
International Auditing and Assurance Standards Board
Overview of ResponsesOverview of ResponsesIAASB Consultation Paper IAASB Consultation Paper
““Assurance on a GHG Statement”Assurance on a GHG Statement”
Caithlin McCabe and Roger Simnett,Caithlin McCabe and Roger Simnett,
Co-chairs – Emissions Task ForceCo-chairs – Emissions Task Force
New YorkNew York
16 March 201016 March 2010
1
IAASBIAASB
• BackgroundBackground
• Who respondedWho responded
• What they saidWhat they said
• Our tentative conclusionsOur tentative conclusions
• Proposed timetableProposed timetable
Outline
• Dec 07 – Project proposal approvedDec 07 – Project proposal approved
• May-Dec 08 – Four roundtablesMay-Dec 08 – Four roundtables
• Dec 08 – Board issues paperDec 08 – Board issues paper
• June 09 – First read of EDJune 09 – First read of ED
• Sept 09 – Consultation Paper (120 days)Sept 09 – Consultation Paper (120 days)
• Dec 09 – COP 15 CopenhagenDec 09 – COP 15 Copenhagen
Background
• 19 Accounting bodies (17 submissions)19 Accounting bodies (17 submissions)
• 6 Firms6 Firms
• 5 Standards-setters5 Standards-setters
• 2 Supreme Audit Institutions2 Supreme Audit Institutions
• 2 Institutional investors2 Institutional investors
• 3 Others: Canadian Stds Assoc, UNSW, Maresca3 Others: Canadian Stds Assoc, UNSW, Maresca
• ACCA video conference chaired by Jon GrantACCA video conference chaired by Jon Grant
Who Responded?
• 212 page collation 212 page collation
• Preliminary analysis only Preliminary analysis only
– Presentation based on first readPresentation based on first read
– TF this weekendTF this weekend
• Many detailed suggestions to considerMany detailed suggestions to consider
• Generally happy with most aspects of WDGenerally happy with most aspects of WD
What did they say?
• Experts/multidisciplinary teamsExperts/multidisciplinary teams– Objectivity, not independence, of external expertsObjectivity, not independence, of external experts
– Approach, consistent with ISA 620, is correctApproach, consistent with ISA 620, is correct
• Relationship with regulatory requirementsRelationship with regulatory requirements– Few, if any, requirements apply only to voluntary reportingFew, if any, requirements apply only to voluntary reporting
• Analytical proceduresAnalytical procedures– Often important; appropriately treated in WDOften important; appropriately treated in WD
• Internal controlInternal control– Not always necessary to look at IC, but increasingly importantNot always necessary to look at IC, but increasingly important
– Appropriately treated in WDAppropriately treated in WD
• AssertionsAssertions
– Risk assessment at assertion level is correctRisk assessment at assertion level is correct
– Clarity needed re “consistency and comparability”Clarity needed re “consistency and comparability”
• Materiality, estimates and uncertaintyMateriality, estimates and uncertainty
– 16 of the respondents – broader than economic decisions16 of the respondents – broader than economic decisions
– Estimates appropriately treated in WDEstimates appropriately treated in WD
– Additional detail on disclosure of uncertaintyAdditional detail on disclosure of uncertainty
• FraudFraud
– Treatment is appropriate in WDTreatment is appropriate in WD
• ReportingReporting
– Mixed views re disclosure of multidisciplinary team and QCMixed views re disclosure of multidisciplinary team and QC
– Positioning of disclosure on uncertaintyPositioning of disclosure on uncertainty
• Fair presentationFair presentation– Ordinarily compliance criteriaOrdinarily compliance criteria
– Allow “fair presentation” wording if required by regulationAllow “fair presentation” wording if required by regulation
• Suitable criteriaSuitable criteria
– Suitability of regulatory criteria?Suitability of regulatory criteria?
• Emissions deductions Emissions deductions – Most respondents consider treatment to be appropriateMost respondents consider treatment to be appropriate
– Some queries re “audited” offsets Some queries re “audited” offsets
• Scope 3Scope 3– Cautionary language is appropriateCautionary language is appropriate
– Clarify treatment if clearly material Scope 3 emissions are excludedClarify treatment if clearly material Scope 3 emissions are excluded
• Direct reportingDirect reporting– No engagements identifiedNo engagements identified
• Professional accountantProfessional accountant
– Use input for ISAE 3000 deliberationUse input for ISAE 3000 deliberation
– Requirement to comply with ISQC 1 and CodeRequirement to comply with ISQC 1 and Code
• Number & nature of requirementsNumber & nature of requirements
– Extensive but not clear what to deleteExtensive but not clear what to delete
– Move engagement management to 3000 when issuedMove engagement management to 3000 when issued
• Limited assuranceLimited assurance
– Significant demand, both regulatory and voluntarySignificant demand, both regulatory and voluntary
– Helpful suggestions for taking issue forwardHelpful suggestions for taking issue forward
Links to ISAE 3000 & 2400
• Standard still urgently needed ...Standard still urgently needed ...
• .... for both reasonable and limited assurance..... for both reasonable and limited assurance.
• Consultation has delayed the process, but ...Consultation has delayed the process, but ...
• ... responses indicate confidence in WD, so ...... responses indicate confidence in WD, so ...
• ... rapid progress can now be made. ... rapid progress can now be made.
Key Conclusions
Proposed TimetableReasonable assurance Limited assurance
March/April ‘10 Out-of session draft Out-of session draft?
June ‘10 Exposure draft Issues paper and 1st draft
September ‘10 Exposure draft
December ‘10 Collation and 1st read
March ‘11 Final ISAE Collation and 1st read
June ‘11 Final ISAE
International Auditing and Assurance Standards Board
Overview of ResponsesOverview of ResponsesIAASB Consultation Paper IAASB Consultation Paper
““Assurance on a GHG Statement”Assurance on a GHG Statement”
Caithlin McCabe and Roger Simnett,Caithlin McCabe and Roger Simnett,
Co-chairs – Emissions Task ForceCo-chairs – Emissions Task Force
New YorkNew York
16 March 201016 March 2010
12
IAASBIAASB
