15101 Purpose of this section, and link with the rest of PwC Audit

Overview This topic explains:

the intended use of the Sustainability Assurance section of PwC Audit the link with the rest of the PwC Audit Guide the authority of the Sustainability Assurance section contents the format of the Sustainability Assurance section, its layers of material, and language conventions used the structure of the Sustainability Assurance section

PwC Guidance Use of the Sustainability Assurance section

The Sustainability Assurance guidance is set out as Section 15000 of the PwC Audit Guide, and is an essentia Sustainability Assurance Master Data, giving specific guidance on the matters engagement leaders and teams

accepting or continuing; performing; and documenting sustainability assurance engagements.

Reporting aspects of sustainability engagements including reporting in a multilocation engagement context, a 12.20. The requirements set out in this Sustainability Assurance section of the PwC Audit Guide, and the Sus out the minimum requirements and procedures we meet in performing sustainability assurance engagements.

However, this section of the Audit Guide and the Master Data cannot anticipate every scenario that may occu services to clients. While many of the concepts will be applicable to a wide range of subject matters, if you ar territory Risk Management and/or Sustainability and Climate Change Group. Link with the rest of the PwC Audit Guide

Many of the concepts covered in the PwC Audit Guide will also apply in respect of sustainability assurance e the requirements and guidance in this section, sustainability assurance engagement teams refer to the relevant further guidance, where appropriate.

As sustainability assurance engagements are a specific subset of non-audit assurance engagements, the guida relevant to sustainability assurance engagements. Teams refer to the content of that section, as appropriate.

This Sustainability Assurance section of the PwC Audit Guide provides subject matter specific guidance to te over reported sustainability information. The authority of the Sustainability Assurance section contents

The Sustainability Assurance section of the PwC Audit Guide follows the requirements and guidance of exta Engagements (ISAE) 3000 Assurance Engagements Other Than Audits or Reviews of Historical Financial In policy and guidance provided where appropriate.

The additional guidance in this section also has regard to the exposure draft of ISAE 3000 (Revised) Assuran Reviews of Historical Financial Information, the exposure draft of ISAE 3410 Assurance Engagements on Gr Attest Engagements, as well as other guidelines and principles, such as GRI Guidelines, the Greenhouse Gas US SOP 03-2 Attest Engagements on Greenhouse Gas Emissions Information, which establish principles for and for providing assurance over such reporting.

The PwC Sustainability Assurance section explains PwC's methodology and provides a common assurance a follow in accordance with network standards, and so that each PwC member firm understands the approach ta sustainability assurance engagement. This is particularly important in the case of services to multinational cli The format of the Sustainability Assurance section, its layers of material and language conventions

As a result of the IAASBs recent Clarity project, all International Standards on Auditing (ISAs) have been c number of the standards fully revised and redrafted. The clarified standards also adopt different language con whereby objectives, requirements, as well as application and other explanatory material are presented in sepa complete ISA.

The exposure draft of ISAE 3000 similarly represents both a revision to the standard and a redraft to conform between requirements of the standard and application guidance and explanatory material.

Although extant ISAE 3000 is not set out in Clarity format, the Sustainability Assurance section follows, as c found in the audit sections of the PwC Audit Guide, distinguishing between the requirements of the standard, and PwC guidance, in order to indicate the authority of the various aspects of the Sustainability Assurance se The PwC Sustainability Assurance section clearly separates the following layers (or categories) of material provide assistance in the effective and efficient application of ISAE 3000 and PwC methodology: Layer Authority Language used

ISAE 3000 requirement* An action required from the assurance provider in order to support the objectives of assurance provided under ISAE 3000.

Required - details the actions that the ISAE wording verbatim assurance provider must undertake to perform an ISAE 3000 compliant engagement. Superior to all remaining layers. Most of the requirements refer to the 'application and other explanatory material' for additional information and guidance.

ISAE 3000 guidance

The ISAE 3000 application and other explanatory material explaining more precisely what a requirement means or is intended to cover, or including examples of procedures that may be appropriate under given circumstances.

Provides guidance on what actions may Generally follows ISAE need to be taken to meet the wording, using language i requirements of ISAE 3000 and present tense. provides examples. It is ordinarily expected that engagement teams will have regard to, and follow, the ISAE 3000 guidance, as it supports the ISAE 3000 requirement layer. It may be additionally expanded by any/all of the layers below. Required

PwC policy Something that PwC, as a network of firms requires territories and their nonaudit assurance engagement teams to do. Policies are internal PwC requirements designed to support compliance with external requirements or to achieve PwC's quality and risk management objectives. Noncompliance may, but will not necessarily, indicate non-compliance with external requirements. PwC guidance A distillation of the member firms' collective knowledge and experience designed to help a member firm's engagement teams or individuals perform tasks and reach conclusions more effectively and efficiently, or considered appropriate to assist teams in complying with PwC policy. Guidance is generally more specific than the requirements and application guidance of ISAE 3000. For example, guidance might include rules of thumb, such as materiality rules of thumb, sample size guidance, or subject matter specific guidance.

Similar to ISAE 3000 requirements, but the word 'shall' is used to denote the authority (consistent with Clarity language). Policy wording is used verbatim.

It is anticipated that engagement teams or territories will generally follow the guidance, and teams are encouraged to explain any departure from PwC guidance in their working papers.

Language style is broadly equivalent to that used for ISAE 3000 guidance - i.e. present tense is used.

*Requirements of other standards, where applicable, are dealt with in a similar manner and have similar auth

The Sustainability Assurance section, like the financial statement audit section of the PwC Audit Guide, ordi industry specific material. Territories may decide to add such specific guidance in course of their local Guide local regulatory requirements, PwC policies and guidance specific for a given territory or industry. It is recom the language used is consistent with the authority of the material, and follows the principles for the different l

Further guidance on considerations that, although written in the context of a financial statement audit engage manner for Sustainability Assurance engagements, can be found in PwC Audit, and include:

Risk management (PwC Audit 103) PwC Experience (PwC Audit 201)

Structure of the Sustainability Assurance section

The Sustainability Assurance section follows the PwC assurance process and covers the following areas for b engagements:

Initial engagement activities Planning and risk assessment procedures Subject matter specific considerations and gathering evidence Completion

The areas of initial engagement activities, planning and completion are covered generically (i.e. they are expe sustainability assurance engagements). Further guidance is given, in the Subject matter specific consideration subject matter specific considerations. A separate section on multilocation sustainability assurance engagements (PwC Audit 15600)

considers matter such as organizational boundaries; independence considerations; subject matter and communications with component engagement teams; and reporting in a group situation.

For all sustainability assurance engagements, teams refer also to local (territory level) risk management for ad among other matters:

Client and engagement acceptance and continuance Terms of the engagement The assignment of a QRP to particular engagements Requirements of local legislation, regulation and/or standards

Electronic assurance files

The Sustainability Assurance workplan has been developed using MyClient Master Data. The Master Data se procedures used to help develop the assurance plan, but represent only a collection of potential assurance pro particular entity circumstances.

Certain procedures included in MyClient Master Data steps are designated as required (indicated by a red env need to be performed to facilitate compliance with ISAE 3000 and/ or PwC policies. Territories, where neces comply with local requirements. However, required steps are not to be deleted. The remainder of the steps are

The Sustainability Assurance Master Data libraries are designed so that the Core Sustainability Assurance M sustainability assurance engagements, and be supplemented by subject matter specific Master Data sets (for e as necessary. For example, for a sustainability assurance engagement where we are engaged to provide reason

emissions, and limited assurance over health and safety KPIs, the following Master Data sets would be used i

Sustainability Assurance Master Data (Core) 2011 Greenhouse gas emissions supplement (reasonable assurance) 2011 Health and safety supplement (limited assurance)

Different territories distribute Master Data sets in different ways. Some deploy to servers, some store them in via their national upgrade/software installation process. Refer to territory guidance on obtaining the latest Ma