IPA voices support for AUASB exposure draft on sustainability assurance amendments

The Institute of Public Accountants (IPA) has voiced its support for the overall proposals contained within the AUASB Exposure Draft: Proposed Australian Standard on Sustainability Assurance ASSA 2025-11 – Amendments to ASSA 5000 General Requirements for Sustainability Assurance Engagements (ED 03/25).

The professional accounting body said that, from its “overall support”, it specifically supported the proposals of the illustrative reports on the different levels of assurance, clarification of the circumstances for the use of the compliance framework and fair presentation framework, and using the same terminology of the Corporations Act 2001.

It was noted that the IPA was also pleased with the inclusion of the example inherent limitation in the illustrative reports and issuing the illustrative reports as an appendix to ASSA 5000 instead of issuing them in a separate document outside ASSA 5000.

In a submission to the Australian Auditing and Assurance Standards Board (AUASB), Vicki Stylianou, IPA group executive of advocacy and professional standards, said in the short term, IPA also supported the proposed approach of a separate independent auditor’s report for a financial report and sustainability report.

“Our support is on the basis of the haste to issue the illustrative reports for application. Our preferred approach is to have one independent auditors report that covers both the financial report and sustainability report,” she said.

“This is because of the interconnectivity of information, assumptions and disclosures between the two reports. However, we recognise that our preferred approach would require public consultation.”

Based on this, the body suggested the AUASB consider the approach of having one independent auditor’s report that covers both the financial report and the sustainability report for future application.

In terms of the wording of the auditor’s conclusion/opinion combining wording from the Corporations Act, the IPA said it agreed with the proposal and said it supported adding the lead in words of “based on the procedures we have performed and the evidence we have obtained” to the highlight the user’s need to understand the nature of limited assurance procedures as per ASSA 5000.

The body also agreed with the proposal that in year one, where only specified disclosures were subject to assurance, the review was based on a compliance framework rather than a fair presentation framework.

“IPA agrees with the proposal that for Year One, where only specified disclosures are subject to assurance, the review should be based on a compliance framework rather than a fair presentation framework.”

In terms of agreement, the body mostly supported all proposed changes; however, it suggested specific changes within the independent auditor’s report.

The institute said it was of the view that it would support the form as it stands now in the short term.

“Given the haste for the issue of the illustrative reports for application, we support the proposed approach of a separate independent auditor’s report for a financial report and sustainability report in the short term and that the AUASB consider the approach of having one independent auditor’s report that covers both the financial report and sustainability report.”