Substantive procedures
The auditor may perform substantive testing to obtain evidence in relation to environmental
matters. Below are some suggested procedures from IAPS 1010 The Consideration of
environmental matters in the audit of financial statements. It is not intended that all of the
procedures will be appropriate in any particular case. In many cases, the auditor may judge
it unnecessary to perform any of these procedures.
General
Documentary review
1 Consider minutes from meetings of directors, audit committees, or any other
subcommittees of the board specifically responsible for environmental matters.
2 Consider publicly available information regarding any existing or possible future
environmental matters.
3 Where relevant, consider:
(a) reports by environmental experts about the entity, such as site assessments,
due diligence investigations or environmental impact studies;
(b) internal audit reports and other internal reports dealing with environmental
matters;
(c) reports issued by, and correspondence with, regulatory and enforcement
agencies;
(d) publicly available registers or plans for the restoration of soil contamination;
(e) environmental performance reports issued by the entity; and
(f) correspondence with the entity's lawyers.
4 Obtain written representations from management that it has considered the effects of
environmental matters on the financial statements, and that it:
(a) is not aware of any material liabilities or contingencies arising from
environmental matters, including those resulting from illegal or possibly illegal
acts;
Form and content of reports ISAE 3000 does not stipulate a standardised format for the report. Different wording will have to be used depending on the engagement. The report should include the following basic elements. (a) A title that clearly indicates that the report is an independent assurance report; (b) An addressee; (c) An identification and description of the subject matter information and, when appropriate, the subject matter; (d) Identification of the criteria; (e) Where appropriate, a description of any significant inherent limitation associated with the evaluation or measurement of the subject matter against the criteria; (f) When the criteria are available only to specific intended users/relevant only to a specific purpose a statement restricting the use of the assurance report to those users/ that purpose; (g) A statement to identify the responsible party and to describe the responsible party's and the practitioner's responsibilities; (h) A statem
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