AAEC Newsletter: April 2022

What Is Our Role As Auditors
In Sustainability Reporting?

Dear {#party.FirstName},

As we saw in our last newsletter, it’s the members of the administrative, management and supervisory bodies of our clients that are responsible for the preparation of the sustainability reporting. But who has to control the reported information? Who is in charge of the audit of the sustainability report? 

The proposed CSRD allows Member States of the EU to allow any independent assurance services provider accredited in accordance with Regulation (EC) No 765/2008 of the European Parliament and the Council to provide an opinion on sustainability reporting based on a limited assurance engagement.

In effect, the Commission’s proposal allows Member States to open up the market for sustainability assurance services. Member States could choose to allow firms other than the usual auditors of financial information to provide assurance on sustainability information.

As auditors, why are we the right contact for this topic if our clients can choose other firms which may even be specialised in sustainability information? I will tell you why:

• Because the sustainability report is included in the annual financial reporting (as part of the management report in Germany);
• Because we know all about structured, standard-compliant reporting;
• And because numerous CSR key performance indicators must match with the figures of the audited financial statements.

Furthermore, all providers of assurance around sustainability information will need to be subject to the same high level of standards, qualifications, objectivity, independence, ethics, quality assurance and oversight of statutory auditors of financial statements.

I am convinced that we are the right partner for our SMEs clients to prepare the sustainability reporting voluntarily. What about you?

Should you ever lose track of the big picture, my colleagues and I from the AGN EMEA Accounting, Auditing & Education Committee (AAEC) will be happy to help and guide you safely through the IFRS and CSR jungle. As a member of AGN International, you can use of the AGN AAEC Helpline at any time or contact me by email at [email protected] or by mobile phone at +49 173 8710322. 

Happy accounting,
Carsten

Carsten Ernst Managing Partner at Wirtschafts Treuhand Group, Stuttgart, Germany
		- Serves as accounting counsel focused on International Financial Reporting Standards (IFRS) - Provides AGN members with support in the context of specific transactions - University Degree in Business Administration		- German Public Auditor and Tax Consultant - Member of the following AGN bodies: EMEA Board of Directors (Vice-Chairman), EMEA AAEC Accounting and Auditing Committee (Chairman) and IACC International Auditing and Accounting Committee

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