Why sustainability is relevant to audit competencies
Environmental, social and governance risks can materially affect business models, cash flow, financial position and performance. As reporting grows, assurance demand also grows. The direction therefore encourages public accountants to build competencies in relevant sustainability fields rather than treating the topic as unrelated to financial reporting and audit.
Category 1: reporting standards
Category 1 is renamed Financial and Sustainability Reporting Standards and Pronouncements. The source examples are Global Reporting Initiative standards, the Task Force on Climate-related Financial Disclosures framework and the ISSB’s IFRS Sustainability Disclosure Standards. These are reporting-standard examples in this document, not a declaration that all are mandatory for every entity.
Category 3: auditing and assurance
Category 3 is renamed Auditing and Assurance Standards, Pronouncements and Methodology. The assurance examples are SSAE 3000 for assurance other than audits or reviews of historical financial information, and SSAE 3410 for greenhouse-gas statements. The subject of a course determines whether it concerns reporting standards or related assurance.
Purpose, commencement and version
CPE applies to registration and renewal under the Second and Third Schedules; the approval described recognises these courses as core expertise for renewal. The changes began on 1 January 2023. The direction was issued on 28 December 2022 and updated as of 1 July 2023, citing section 13 of the Accountants Act.
Official source
This article independently explains the substantive contents of the official PDF, including the relevant conditions, procedures and annexes. The linked document remains the authoritative source for its original wording, and later changes should be checked separately.
Read the official PDF ↗