IRBA Issues Feedback on Sustainability Assurance Practice Statement Review

Posted 04 June 2025 Written by Acts Online
Category Financial and Accounting

Brought to you by SA Accounting Academy: The Independent Regulatory Board for Auditors (IRBA) has published a Feedback Statement detailing the results of its post-implementation review (PIR) of South African Assurance Engagements Practice Statement (SAAEPS) 1.

In terms of the Auditing Profession Act, No. 26 of 2005, the IRBA issued the Feedback Statement to assess the effectiveness of SAAEPS 1, Sustainability Assurance Engagements: Rational Purpose, Appropriateness of Underlying Subject Matter and Suitability of Criteria. Originally issued in August 2018 by the Committee for Auditing Standards (CFAS), SAAEPS 1 provides practical guidance on the preconditions for accepting sustainability assurance engagements as required by International Standard on Assurance Engagements (ISAE) 3000 (Revised), Assurance Engagements Other than Audits or Reviews of Historical Financial Information.

The PIR, which commenced in August 2023 and was conducted throughout 2024, focused on the practical application of the statement since it became effective for assurance engagements for periods beginning on or after 15 December 2022. Key findings from the review included:

  • The critical importance of internal processes and controls for non-financial information.
  • The necessary involvement of governance structures in sustainability reporting.
  • The impact of global sustainability-related regulatory developments on local practice.
  • The role of readiness assessments and the availability of suitable reporting criteria.

Future Regulatory Developments

The CFAS and the Committee for Auditor Ethics are currently coordinating efforts to recommend that the IRBA Board adopt International Standard on Sustainability Assurance (ISSA) 5000. This process includes the localisation of the International Ethics Standards Board for Accountants’ (IESBA) International Ethics Standards for Sustainability Assurance (including International Independence Standards) into the IRBA Code of Professional Conduct. These recommendations are expected to be tabled for Board consideration in the first quarter of 2026.

The IRBA also noted a potential need for awareness-raising efforts targeting non-registered auditors, given that ISSA 5000 is designed to be profession-agnostic.

Click here to download the IRBA Feedback Statement on SAAEPS 1 or access the updated SAAEPS 1 document.

What this means for you, your business, or your clients

  • For yourself: You must ensure that your technical knowledge of ISAE 3000 (Revised) and SAAEPS 1 is current before signing off on the preconditions for any sustainability assurance engagement.
  • For your business: Audit firms should review their engagement acceptance and continuance templates to ensure they align with the IRBA’s findings regarding the suitability of subject matter and the availability of evidence for non-financial reporting.
  • For your clients: Clients should be advised that the transition to ISSA 5000 (expected around 2026) will require more rigorous internal controls over non-financial data and that readiness assessments are a critical precursor to formal assurance.

Originally published at https://accountingacademy.co.za/news/read/irba-feedback-statement-on-the-postimplementation-review-of-its-saaeps-1

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