Joint submission on proposed changes to the Australian Standard on Sustainability Assurance
AUASB proposes amendments to ASSA 5000 in response to matters raised by audit firms
The AUASB issued Exposure Draft (ED) 01/25 on 1 April 2025 proposing amendments to ASSA 5000 General Requirements for Sustainability Assurance Engagements to address practical implementation matters raised by audit firms, specifically:
- Introducing transitional provisions for certain requirements in Part 5 of the IESBA Code; and
- Changing the start date for applying ASSA 5000 to engagements other than engagements for assurance over information in sustainability reports under Chapter 2M.
The AUASB is proposing to amend ASSA 5000 in two stages, beginning with the above and then again to reference APES 110 Code of Ethics for Professional Accountants (including Independence Standards) (the Code) once the APESB issues the Australian Ethics Standards for Sustainability Assurance (Part 5 of the APESB Code).
Responding in the short 30-day consultation period, CA ANZ and CPA Australia have recommended against referring Part 5 of the IESBA Code in ASSA 5000, on the basis that it is not necessary nor appropriate (for the reasons outlined in the submission). In our view, references to APES 110 suffice for the short interim period expected prior to the APESB issuing Part 5 of the APESB Code.
However, if the AUASB proceeds with references to Part 5 of the IESBA Code, we have included recommendations for further refinement to the proposals in the ED to improve application in practice, including:
- Removing the term “inadvertently” from the non-assurance services transitional provision due to its ambiguity and subjectivity risking inconsistent application.
- Amending wording in the illustrative assurance reports, which as currently drafted are unnecessarily complex and potentially misleading for users of assurance reports.
- Providing clarity on the effective date of the value chain provisions.
We agree with deferring the operative date for sustainability assurance engagements other than those on information in sustainability reports under Chapter 2M of the Corporations Act 2001, but we recommend it is aligned to the ISSA 5000 operative date (periods beginning on or after 15 December 2026, or as at a specific date on or after 15 December 2026).
