ICAI releases SAE for Assurance Engagements on Greenhouse Gas Statements

The Institute of Chartered Accountants of India (ICAI) has released Standard on Assurance Engagements (SAE) 3410 so as to Assure Engagements on Greenhouse Gas Statements.

The Standard on Assurance Engagements (SAE) deals with assurance engagements to report on an entity’s GHG statement.

The practitioner’s conclusion in an assurance engagement may cover information in addition to a GHG statement for example, when the practitioner is engaged to report on a sustainability report of which a GHG statement is only one part.

In such cases the SAE applies to assurance procedures performed with respect to the GHG statement other than when the GHG statement is a relatively minor part of the overall information subject to assurance; and the Guidance Note on Reports or Certificates for Special Purposes applies to assurance procedures performed with respect to the remainder of the information covered by the practitioner’s conclusion.

There are various objectives of the practitioner behind Standard on Assurance Engagements.

Firstly, to obtain either reasonable assurance or limited assurance, as appropriate, about whether the GHG statement is free from material misstatement, whether due to fraud or error, thereby enabling the practitioner to express a reasonable assurance or limited assurance conclusion.

Secondly, to report, in accordance with the practitioner’s findings, about whether in the case of a reasonable assurance engagement, the GHG statement is prepared, in all material respects, in accordance with the applicable criteria; or in the case of a limited assurance engagement, anything has come to the practitioner’s attention that causes the practitioner to believe, on the basis of the procedures performed and evidence obtained, that the GHG statement is not prepared, in all material respects, in accordance with the applicable criteria.

Thirdly, to communicate as otherwise required by this SAE, in accordance with the practitioner’s findings.

In both reasonable assurance and limited assurance engagements on a GHG statement, the practitioner chooses a combination of assurance procedures, which can include: inspection; observation; confirmation; recalculation; reperformance; analytical procedures; and inquiry. Determining the assurance procedures to be performed on a particular engagement is a matter of professional judgment. Because GHG statements cover a wide range of circumstances, the nature, timing, and extent of procedures are likely to vary considerably from engagement to engagement.

To Read the full text of the Document CLICK HERE

Support our journalism by subscribing to Taxscan AdFree. We welcome your comments at info@taxscan.in