Climate-related risks of an audit of financial statements: Audit and assurance alert
Climate change is increasingly front of mind for investors and other stakeholders as its effects are increasingly visible. This alert assists auditors in understanding considerations of climate-related risks in an audit of financial statements.
This audit and assurance alert has been adapted from the IAASB staff practice alert of the same title, The Consideration of Climate-Related Risks in an Audit of Financial Statements, to include references to Canadian Auditing Standards (CAS). This alert is intended to help auditors understand what already exists in the CASs today and how that material relates to the auditor’s consideration of climate-related risks in an audit of financial statements.
Topics addressed:
- entities that may be affected
- management's responsibilities
- auditor responsibilities
- significant areas of the CASs most relevant in relation to climate-related risks including:
- risk assessment and responses to assessed risks
- audit evidence
- communication with those charged with governance and auditor reporting
The material for this alert has been reproduced with permission from the International Federation of Accountants (IFAC).