Our auditor said they cannot do this. Who should we use instead?

Because your auditor cannot prepare a disclosure they will later assure, the work goes to someone independent of them. Your realistic options are another audit firm outside your auditor's network, a specialist disclosure preparer, or an in-house build. Independence from your assurance provider is the binding constraint, not size or brand.

Can our auditor prepare our climate report?

Usually not, and it turns on whether they will also assure it. Preparing a disclosure you later assure is a self-review threat under APES 110, and for a public interest entity that threat cannot be reduced to an acceptable level, so the service is prohibited. Other entities need a case-by-case assessment.

Will our auditor accept a report prepared by a third party?

Yes. Who drafted the report is not an assurance issue, because the disclosure belongs to management whoever prepared it and the directors sign the declaration. What the practitioner tests is the evidence behind the numbers, so a third-party preparer removes the independence problem without creating a new one.

Glossary›Assurance, audit evidence and working papers›Assurance provider (vs auditor)

Glossary term

Cluster A · A20

Tier 1 · differentiator

Assurance provider (vs auditor)

Definition

An assurance provider is the firm engaged to give a conclusion on your sustainability report. Under the Corporations Act it must be a registered company auditor, an audit firm or an audit company with a registered company auditor as lead auditor. It may be the same firm that audits your financial report, or a different one.

Corporations Act 2001

· sections 301A and 324AA ·

In force

On this page

In practice
What the assurer does with it
Commonly confused with
Sources
Related terms
Related questions

Cluster

A · Assurance, audit evidence and working papers, 47 terms

In practice

Three facts settle most of the confusion here.

First, the assurance must be performed by a registered company auditor. Sustainability assurance experience alone does not qualify a person for registration; only financial report audit experience counts as practical experience for registration purposes. A specialist sustainability assurance firm without registered company auditors cannot sign the statutory conclusion.

Second, the entity is not required to appoint the same auditor for both reports. Section 324AA permits a company, registered scheme or retail CCIV to appoint a different auditor for the sustainability report. Registrable superannuation entities are the exception and must have a single auditor covering both.

Third, most entities appoint the same firm anyway, because each auditor must consider whether there is a material inconsistency between the sustainability report and the financial report, and doing that across two firms creates cost and friction. ASIC notes the practical considerations without mandating an outcome.

Where different lead auditors are appointed for the two reports, each applies the independence, rotation and declaration requirements separately.

What the assurer does with it

At acceptance the firm confirms it holds the necessary registration, assesses independence across all services provided to the entity, and issues a written independence declaration identifying which report it relates to. If you appoint different firms, expect each to request access to the other’s work on the consistency question, and expect that to be negotiated.

Commonly confused with

A verification body or certification body. Climate Active, ISO and B Corp verification are performed by bodies that are not registered company auditors and cannot sign a Corporations Act conclusion.