Періодичні видання НАСОА

Permanent URI for this communityhdl:123456789/12

Browse

Browsing Періодичні видання НАСОА by Subject "audit"

Filter results by typing the first few letters
Now showing 1 - 2 of 2
  • Thumbnail Image
    Item
    Sustainable Development Reporting: Challenges or Opportunities for Auditors?
    (Національна академія статистики, обліку та аудиту, 2025) Lubenchenko О . Е .
    The Directive of the European Parliament and Council from December 14, 2022 No . 2022/2464/EU on corporate sustainability reporting and the adoption of the European Sustainability Reporting Standards (ESRS) require that business entities and audit firms adapt their organizational processes of reporting and verifications to the new requirements . Ukraine demonstrates its propensity to the European choice by joining the strategies on the way towards Sustainable Development Goals . Hence, an important challenge for domestic enterprises is learning the sustainability reporting requirements, and for domestic auditors it is mastering the techniques for assurance engagements on this reporting . The article contains a review and systematization of the requirements of European legal acts on sustainability reporting, with detailing the structure of report in compliance with ESRS 1; a review of the Recommendations of the Committee of European Auditing Oversight Bodies on assurance engagements and main challenges faced by audit firms in implementing European standards for sustainability reporting, as well as opportunities opened by this practice . The definitions of terms “reasonable assurance” and “limited assurance” were examined . The author analyzed the need for adapting the auditing procedures to new requirements . For the limited assurance engagement, the following procedures were outlined: questioning of business entity’s staff, analytical substantive procedures, tests of control measures, assessment of the evidence from external (alternative) sources . Organizational approaches to the limited assurance engagement on sustainability were proposed, the phases in determining the impact materiality were outlined . A structure of the report on limited assurance on sustainability to be made by the auditor / independent practical specialist was developed . The author’s propositions can be used as a framework for ensuring quality of assurance engagements performed on legal grounds or on request of investors or other stakeholders . European innovations in the sustainable development field, while charging audit firms with a heavy responsibility, open up before them new perspectives and new markets, enhance the auditors’ role in ensuring the resilience and transparency of companies, foster new skills and competences in the domain of sustainability audit .
  • Thumbnail Image
    Item
    The International Standard on Sustainability Assurance (ISSA) 5000. The Assessment of Sustainability and Financial Performance of Business Entities in the Practice of Auditing Firms
    (Національна академія статистики, обліку та аудиту, 2025) Lubenchenko О. Е.; Shulha S. V.
    The article is devoted to important issues of implementing verification schemes for sustainability reporting (SR) in the practice of auditing firms on the basis of the International Standard on Sustainability Assurance (ISSA) 5000. The authors demonstrate that ISSA 5000 is a standard containing strict requirements and technical recommendations on SR assessment; it is characterized by universality, professional flexibility and focus on building trust with SR users. ISSA 5000 applies to verifications of SR, compiled on the basis of the norms such as Global Reporting Initiative (GRI), Sustainability Accounting Standards Board (SASB), the European Sustainability Reporting Standards (ESRS), etc. Directive (EU) 2022/2464 regulating corporate SR has extended the requirements to its compilation and verification. ISSA 5000 is a comprehensive standard applied to engagements on both material and limited assurance on the sustainability-related information. ISSA 5000 offers the framework for phasing SR verifications. Based on it, the authors defined five phases: (i) acceptance of customer and engagement, determining the subject of auditor’s attention (environmental issues, social dimensions and governance, SR assessment criteria); (ii) risk assessment and planning of verification; (iii) collection of evidence; (iv) preparation of the independent practitioner’s reporting, containing the report for management staff (communication to management staff), and the report on limited or material assurance. It is demonstrated that an auditor / an independent practitioner, when collecting the evidence, must assess the business entity’s sustainability, the financial sustainability in particular. The following procedures are applied in international practices in assessing the disclosed information on sustainability: stakeholder interviews; consideration of complaints; using external ranks of business performance; comparative analysis. However, normative documents on sustainability assessment do not provide a set of assessment indicators. Therefore, the author proposed to assess key components (such as environmental sustainability, economic sustainability and its social dimensions, business management, e. g. technical sustainability issues) using a set of coefficients. These coefficients include: trends in the environmental tax paid by Ukrainian businesses; carbon footprint; energy efficiency coefficient; waste recovery rate; dynamics of tax revenues (estimates of the total taxes – nationwide, local taxes and fees – paid by a business entity in the reporting and previous period; their allocation, e. g. on financing privileges for job creation); coefficients measuring technical sustainability. It is proposed that the financial sustainability assessment be performed by financial analysis methods. The assessment of sustainability and financial resilience of a business entity allows for insights into the actual situation with SR. It is demonstrated that the auditing firms that have learnt and implemented ISSA 5000 requirements would have additional competitive advantages in the present-day dynamic environment, whereas verifications of SR reporting enhance the corporate reputation of business entities.