Tag: ICSR

The International Auditing and Assurance Standards Board issued an exposure draft of General Requirements for Sustainability Assurance Engagements – International Standard on Sustainability Assurance (ISSA) 5000, inviting comments by December 1, 2023.  Douglas Hileman Consulting LLC (DHC) submitted comments, with two topics of interest to preparers and users of these reports. 

Why the push for assurance standards?          Sustainability reports have been around for over 25 years. Sustainability factors affect companies’ prospects for obtaining capital, delivering financial performance, as well as their effect on the environment and society.  They have matured over the years.  Even so, the scope, content, metrics, and rigor leave much to be desired by users – notably investors.  Some regulations, including the EU’s Sustainability Reporting Standards (ESRS) and California’s SB 253 (disclosure of greenhouse gas emissions) will require external assurance within a few years.  Read More

“This is Not Fine” Says LA Controller’s office.  Alas, it applies to the report itself.  A report can be impactful or a missed opportunity.  For how NOT to write a report, read more. 

The Institute of Internal Auditors released an exposure draft of Global Internal Audit Standards (“draft GIAS”).  These standards will affect the Internal Audit profession and all who rely on it – the board, management, investors, and the public.  Here are six areas I suggest for improvement. 

Public interest. objectives of organization:  The draft GIAS mentions “public interest”, including the premise that GIAS are set in the public interest.  This has aroused spirited comments on social media.   (Read More)

The Institute of Internal Auditors has released an exposure draft of Global Internal Audit Standards (“draft GIAS”).  These standards will affect the Internal Audit profession and all who rely on it.  Here are five things I liked – at least, mostly. 

1. Necessity and Timing: It has been six years since the International Professional Practices Framework (IPPF) was revised.  The world has changed, other relevant standards have changed, and more is expected of Internal Audit.   For example, COSO released supplemental guidance “Achieving Effective Internal Control over Sustainability Reporting (ICSR)” in March 2023[1].  This document highlights roles for Internal Audit. It introduced “ICSR” into the lexicon. People are already talking about “sustainability SOX testing”.  The timing is good.   (Read More)

[1] I was a principal author of this supplemental guidance.  The document can be accessed on the COSO website, as well as from the home page of www.douglashileman.com. 

IIA’s GAM session was SRO, with more online. Doug and Edward Olson (Partner and [Canadian] National Leader for ESG) offered takeaways. Read more.

IIA Los Angeles 2022 Fall Conference Session: Takeaways

I presented “Internal Controls over Sustainability Reporting” (ICSR) at the Institute of Internal Auditors – Los Angeles Chapter – 2022 Fall Conference in October 2022.  This long-running, marquee event attracts hundreds of attendees from across the Southland.  My latest installment was another successful session on hot topics related to Sustainability/ ESG.  Reporting, disclosures, and even expectations of assurance are on the rise.  Here are key takeaways from the session, where Internal Auditors learned how to add value to their organizations. 

• Sustainability reporting: Sustainability/ ESG reporting is done to meet the needs of many stakeholders.  Investors – and analysts supporting them – have been leading the charge, demanding accurate, reliable, decision-useful reporting and disclosure on sustainability topics.   (Read More)