International Auditing and Assurance Standards Board 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 IAASB 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 collation212 page collation Preliminary analysis onlyPreliminary analysis only Presentation based on first read TF 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 experts Approach, consistent with ISA 620, is correct Relationship with regulatory requirementsRelationship with regulatory requirements Few, if any, requirements apply only to voluntary reporting Analytical proceduresAnalytical procedures Often important; appropriately treated in WD Internal controlInternal control Not always necessary to look at IC, but increasingly important Appropriately treated in WD AssertionsAssertions Risk assessment at assertion level is correct Clarity needed re consistency and comparability Materiality, estimates and uncertaintyMateriality, estimates and uncertainty 16 of the respondents broader than economic decisions Estimates appropriately treated in WD Additional detail on disclosure of uncertainty FraudFraud Treatment is appropriate in WD ReportingReporting Mixed views re disclosure of multidisciplinary team and QC Positioning of disclosure on uncertainty Fair presentationFair presentation Ordinarily compliance criteria Allow fair presentation wording if required by regulation Suitable criteriaSuitable criteria Suitability of regulatory criteria? Emissions deductionsEmissions deductions Most respondents consider treatment to be appropriate Some queries re audited offsets Scope 3Scope 3 Cautionary language is appropriate Clarify treatment if clearly material Scope 3 emissions are excluded Direct reportingDirect reporting No engagements identified Professional accountantProfessional accountant Use input for ISAE 3000 deliberation Requirement to comply with ISQC 1 and Code Number & nature of requirementsNumber & nature of requirements Extensive but not clear what to delete Move engagement management to 3000 when issued Limited assuranceLimited assurance Significant demand, both regulatory and voluntary Helpful 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 Timetable Reasonable assurance Limited assurance March/April 10 Out-of session draftOut-of session draft? June 10 Exposure draftIssues paper and 1 st draft September 10 Exposure draft December 10 Collation and 1 st read March 11 Final ISAECollation and 1 st read June 11 Final ISAE International Auditing and Assurance Standards Board 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 IAASB