ASRS Assurance Guidelines: A Guide to Climate Disclosure Auditing Requirements

The Australian Sustainability Reporting Standards (ASRS) introduce a phased approach to climate data auditing. This guide outlines the Auditing and Assurance Standards Board's (AUASB) standards for ASRS assurance, helping organisations prepare for upcoming climate disclosure auditing requirements.

AUASB Standards for ASRS Assurance: Key Timeline

The AUASB has proposed the following timeline for ASRS assurance:

1. First Reporting Year:

   • Limited assurance on Scope 1 and 2 emissions

   • Limited assurance on governance and strategy disclosures

   • No assurance required for Scope 3 emissions

2. Second and Third Reporting Years:

   • Reasonable assurance on Scope 1 and 2 emissions

   • Limited assurance on all other disclosures, including Scope 3 emissions

3. Fourth Year Onwards:

   • Reasonable assurance on all climate disclosures

Additional ASRS Assurance Considerations

• Scenario Analysis: Assurance required for both 1.5°C and 2.5°C+ warming scenarios

• Modified Liability: Applies to Scope 3 emissions, scenario analysis, and transition plans for initial years

• "No Material Risks" Statements: AUASB considering assurance requirements

• Comparative Information: Evaluation of assurance approach in progress

Preparing for ASRS Assurance: Climate Disclosure Auditing Steps

1. Engage with assurance providers early

2. Establish robust internal controls

3. Develop effective data collection processes

4. Stay informed about evolving AUASB standards

AUASB Seeking Stakeholder Feedback

The AUASB is seeking input on these ASRS assurance guidelines:

• Assurance requirements feedback due: 16 November 2024

• Internal auditor assistance prohibition consultation due: 1 December 2024

By understanding these ASRS assurance guidelines and climate disclosure auditing requirements, organisations can effectively prepare for the upcoming changes in climate-related financial reporting. Stay informed about AUASB standards updates to ensure ongoing compliance with ASRS assurance requirements.