The International Auditing and Assurance Standards Board (IAASB) today issued its proposed International Standard on Sustainability Assurance (ISSA) 5000, General Requirements for Sustainability Assurance Engagements. With its focus on assurance on sustainability reporting, ISSA 5000, when approved, will be the most comprehensive sustainability assurance standard available to all assurance practitioners across the globe.

“Our proposed ISSA 5000 is a crucial step in enhancing confidence and trust in sustainability reporting. This proposal directly responds to the International Organization of Securities Commissions recommendations and complements the work of other standard setters, including the International Ethics Standards Board for Accountants,” noted IAASB Chair Tom Seidenstein. “Corporate reporting, whether financial or sustainability focused, is more trusted when it receives external and independent assurance based upon globally accepted standards independently developed in the public interest.”

ISSA 5000 is a principles-based, overarching standard suitable for both limited and reasonable assurance engagements on sustainability information reported across any sustainability topic. The IAASB drafted the standard to work with sustainability information prepared under any suitable reporting framework. These frameworks include the many reporting frameworks already in place and those under development, including but not limited to those issued by the European Union, the International Sustainability Standards Board, the Global Reporting Initiative, the International Organization for Standardization, and others. The standard is profession agnostic, supporting its use by both professional accountant and non-accountant assurance practitioners when performing high quality sustainability assurance engagements.

The IAASB is committed to an extensive, high-level outreach plan to ensure broad stakeholder input. One core element of the outreach is a series of four roundtables beginning in September. The IAASB will also take part in virtual, regional, and national events, many held in partnership with other organizations, throughout the consultation period.

“Receiving the broadest range of views from our stakeholders will improve both the quality of and trust in the final standard. Our unprecedented commitment to outreach will allow us to engage directly with a much wider group of stakeholders to gather the valuable insights we need to finalize a high-quality robust standard,” noted IAASB Vice-Chair and Sustainability Task Force Chair Josephine Jackson.

For additional information on upcoming events, follow the IAASB on LinkedIn and/or Twitter and register/subscribe to our mailing list.

ISSA 5000 will be available French, Japanese, Portuguese, and Spanish in the coming weeks. The IAASB invites all stakeholders to comment on the proposed revisions via the IAASB website by December 1, 2023.

The International Federation of Accountants (IFAC) plays a vital role in driving the development, adoption, and implementation of transparent and high-quality international standards. These standards for audit and assurance, ethics and independence, education, and public sector accounting are used by professional accountants and serve as a fundamental pillar within the global financial architecture.

The World Bank, an institution dedicated to providing financing, policy advice, and technical assistance to governments of developing countries, recently extended significant financial support to expand the accessibility of certain materials (noted below) into Spanish and French. This support broadens the availability of these publications to IFAC’s global audience and their stakeholders, and helps to promote greater economic growth, development, and accountability.

In jurisdictions where English is not an official or business language, one of the primary obstacles to successful adoption and implementation of international standards is the lack of access to translations in local languages. IFAC takes proactive steps to tackle this challenge by collaborating with member organizations in leveraging their technical expertise to provide translation support, as well as engaging with donors to help further facilitate the translation process.

IFAC CEO Kevin Dancey said, “IFAC thanks the World Bank and our member organizations for their generous financial support in expanding the accessibility of multilingual materials. Your invaluable contribution has made a profound impact on our efforts to foster the adoption and implementation of international standards on a global scale. Consequently, this will pave the way for driving progress, bolstering economic stability, and ensuring responsible financial practices worldwide.”

For more details on how to support translations, please reach out to Michelle Brody (MichelleBrody@ifac.org) or permissions@ifac.org.

View the newly translated publications in Spanish and French:

      ¹Spanish was not completed under the World Bank.

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 more than 135 jurisdictions, representing more than 3 million accountants in public practice, education, government service, industry, and commerce.

The endorsement by International Organization of Securities Commissions (IOSCO) of IFRS Sustainability Disclosure Standards S1 and S2, and its call to action to its member jurisdictions, are most welcome developments in the ever-important sustainability space.

We commend the IFRS Foundation, the International Sustainability Standards Board (ISSB), and IOSCO who are dedicated to maintaining fair, efficient and transparent markets. Promoting consistent and comparable climate-related and other sustainability-related information is an important component of this work.

As sustainability reporting becomes increasingly mandatory in some jurisdictions, the focus must turn quickly to mandatory assurance. Without it, the quality of sustainability reporting will lag financial reporting, and there will continue to be issues with greenwashing, reliability, and credibility. The accountancy profession, underpinned by its Code of Ethics, is particularly well placed to provide assurance services across both sustainability and financial disclosure.

IFAC CEO Kevin Dancey said, "IFAC applauds IOSCO’s endorsement of IFRS Sustainability Disclosure Standards S1 and S2, and its call to action to its member jurisdictions. These are important and most welcome developments. Now, the focus must turn quickly to sustainability assurance. IFAC remains committed to advancing these important conversations with our many global stakeholders, including with our 180 member organizations that represent millions of professional accountants all around the world."

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. 

The International Auditing and Assurance Standards Board (IAASB) and the International Ethics Standards Board for Accountants (IESBA) applaud the efforts of the International Sustainability Standards Board (ISSB) and today’s International Organization of Securities Commissions’ (IOSCO) endorsement decision of the ISSB’s recently issued IFRS Sustainability Disclosure Standards S1 and S2. IOSCO determined that these standards are “appropriate to serve as a global framework for capital markets to develop the use of sustainability-related financial information in both capital raising and trading and for the purpose of helping globally integrated financial markets accurately assess relevant sustainability risks and opportunities.”

In commenting on the endorsement, Tom Seidenstein and Gabriela Figueiredo Dias, IAASB and IESBA Chairs, respectively, said, “IOSCO’s endorsement of IFRS Sustainability Disclosure Standards S1 and S2 and its call to action for member jurisdictions to move toward adoption and implementation are two more important steps in establishing a trusted reporting framework for sustainability information. We appreciate IOSCO’s leadership in coordinating global consistency in sustainability reporting, assurance and ethics standards.”

The International Auditing and Assurance Standards Board (IAASB) and the International Ethics Standards Board for Accountants (IESBA) applaud the efforts of the International Sustainability Standards Board (ISSB) and today’s International Organization of Securities Commissions (IOSCO) endorsement decision of the ISSB’s recently issued IFRS Sustainability Disclosure Standards S1 and S2. IOSCO determined that these standards are “appropriate to serve as a global framework for capital markets to develop the use of sustainability-related financial information in both capital raising and trading and for the purpose of helping globally integrated financial markets accurately assess relevant sustainability risks and opportunities.”

In commenting on the endorsement, Tom Seidenstein and Gabriela Figueiredo Dias, IAASB and IESBA Chairs, respectively, said, “IOSCO’s endorsement of IFRS Sustainability Disclosure Standards S1 and S2 and its call to action for member jurisdictions to move toward adoption and implementation are two more important steps in establishing a trusted reporting framework for sustainability information. We appreciate IOSCO’s leadership in coordinating global consistency in sustainability reporting, assurance, and ethics standards.”

Mark your calendars for August 2!

We will issue the proposed, landmark International Standard on Sustainability Assurance (ISSA) 5000, General Requirements for Sustainability Assurance Engagements, for public consultation on August 2.

When approved, ISSA 5000 will be the most comprehensive sustainability assurance standard available to all assurance practitioners across the globe. It will apply to sustainability information reported about any appropriate sustainability matter and prepared under any suitable framework. It will also apply for both limited and reasonable assurance engagements.

ISSA 5000 also benefits from close consultation and coordination with other global organizations, including IOSCO, FSB, IESBA, ISSB, and GRI.

From August 2 to December 1 is when we need to hear from you; your feedback on the proposed standard is crucial. We need to hear from those who:

• Prepare, use or provide assurance on sustainability information
• Use reported sustainability information to make decisions, including audit committee members, investors, and others.

Follow us on LinkedIn or on Twitter or register & subscribe on our website for updates on the proposed ISSA 5000’s release and for announcements about upcoming webinars and events.

The public sector is the largest sector in the global economy, and with complex finances, competing demands on public resources, and the need for transparency and accountability in the management of public funds, the demand for accounting and finance professionals is high. However, many public sector entities, including at national and local government levels, struggle to find suitable candidates with the right skills to fill these positions.

In collaboration with the South African Institute of Chartered Accountants (SAICA), IFAC has published a case study on SAICA’s activities in the public sector, highlighting how a focus on the public sector supports its mandate to contribute to South Africa’s economic and social advancement. SAICA’s priorities include increasing the professionalisation of the public sector through multiple pathways to attract talent and grow its membership, as well as supporting members through professional development and by advocating on their behalf.

“Professional accountancy organizations (PAOs) have a critical role to play in the public sector,” said Stathis Gould, Director of Member Engagement at IFAC. “PAOs can promote the value of a professional workforce, advocate for accountants, and support members’ professional development, which will help the public sector do more with less, and ultimately reinforce trust in public services and spending. SAICA is an excellent example to learn from.”

Dive into SAICA’s methods in IFAC’s case study, Broadening the Accountancy Profession’s Reach in the Public Sector.

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. 

Recently, IESBA provided a formal response to the Institute of Internal Auditors (IIA) on the public consultation: Proposed Global Internal Audit Standards. The IESBA commended the IIA’s efforts in making the proposed standards clearer and easier and agree that it is an important strategic priority and in the public interest to ensure international standards such as the IIA standards and IESBA Code remain fit-for-purpose and relevant in addressing key issues users of the standards face.

In IESBA’s response, the global ethics standards setting board highlighted the importance of a comprehensive framework, such as the IESBA’s conceptual framework, to assist internal auditors to identify, evaluate, and address threats to the principles set out in the proposed IIA standards when performing their internal audit function

The IESBA raised its concern in the use of well-established terms such as “independence” and “professional skepticism”, as these terms are generally used in the context of external audit and assurance engagements.

To read IESBA’s full response, click here.

About the IESBA

The International Ethics Standards Board for Accountants serves the public interest by setting ethics standards, including independence requirements, as a cornerstone to ethical behavior in business and organizations, and to public trust in financial and non-financial information. Along with the International Auditing and Assurance Standards Board, the IESBA is part of the International Foundation for Ethics and Audit. The Public Interest Oversight Board (PIOB) oversees IESBA and IAASB activities and the public interest responsiveness of the standards. For copyright, trademark, and permissions information, please visit Permissions.

Various media revelations, such as the Paradise Papers and the Pandora Papers, have highlighted the important role tax intermediaries play in facilitating tax structures that contribute to billions of euros of lost tax revenue in the EU every year. To address this issue, the European Commission has announced a proposal with the objective of preventing enablers from setting up complex structures in non-EU countries for tax evasion and aggressive tax planning purposes. This initiative would complement the Unshell Directive, which sets out criteria for identifying entities that lack minimal economic substance within the EU.

IESBA Chair Gabriela Figueiredo Dias will speak at a public hearing organized by the European Parliament’s Subcommittee on Tax Matters (FISC) on July 17, 2023 from 15:00 to 16:30 CEST in Brussels, Belgium.

The event, “Tackling the role of enablers involved in facilitating tax evasion and aggressive tax planning in the European Union (SAFE),” will be introduced by Paul Tang, FISC Chair. Other speakers include Olivier Boutellis-Taft (CEO, Accountancy Europe) and Ivan Lazarov (Research Associate, International Bureau of Fiscal Documentation (IBFD)). A question-and-answer session with Members of the FISC Subcommittee will follow. The public hearing will help inform the European Parliament's opinion on the new legislative proposal.

The hearing will be web-streamed at: https://www.europarl.europa.eu/committees/en/tackling-the-role-of-tax-enablers/product-details/20230705CHE11962.

About the IESBA

The International Ethics Standards Board for Accountants serves the public interest by setting ethics standards, including independence requirements, as a cornerstone to ethical behavior in business and organizations, and to public trust in financial and non-financial information. Along with the International Auditing and Assurance Standards Board, the IESBA is part of the International Foundation for Ethics and Audit. The Public Interest Oversight Board (PIOB) oversees IESBA and IAASB activities and the public interest responsiveness of the standards. For copyright, trademark, and permissions information, please visit Permissions.

Rapid advances in technology are transforming the way professional accountants conduct their work. To assist them in ethically navigating the challenges and opportunities brought by these advances, the Staff of the Australian Accounting Professional & Ethical Standards Board (APESB) and the Staff of the International Ethics Standards Board for Accountants (IESBA) today jointly released Applying the Code's Conceptual Framework to Independence: Practical Guidance for Auditors In Technology-related Scenarios. The publication describes key technology-related provisions of the International Code of Ethics for Professional Accountants (including International Independence Standards) and provides auditors with three practical examples involving technology-related non-assurance services to illustrate how to apply the Code's requirements with respect to independence.

“This joint APESB-IESBA Staff publication is timely and fulfills a commitment we have made to collaborate with national standard setters and others to provide helpful guidance to assist auditors in implementing and consistently applying the Code’s revised technology-related provisions,” said Gabriela Figueiredo Dias, IESBA Chair. “Over the past three years, the Board has dedicated strategic focus and significant resources to addressing the ethics and independence implications of technological innovation such as AI, blockchain, and data analytics, culminating in strengthened technology-related provisions in the Code and two comprehensive reports under Phases 1 and 2 of its fact-finding work.”

This non-authoritative publication was developed jointly by the Staff of the APESB and IESBA under the auspices of the IESBA’s Technology Task Force, initiated as part of the IESBA’s Phase 2 Technology Working Group activities.  Learn more about IESBA’s technology work here.

About the IESBA

The International Ethics Standards Board for Accountants serves the public interest by setting ethics standards, including independence requirements, as a cornerstone to ethical behavior in business and organizations, and to public trust in financial and non-financial information. Along with the International Auditing and Assurance Standards Board, the IESBA is part of the International Foundation for Ethics and Audit. The Public Interest Oversight Board (PIOB) oversees IESBA and IAASB activities and the public interest responsiveness of the standards. For copyright, trademark, and permissions information, please visit Permissions.