9.

 THE GROWING IMPORTANCE OF

SUSTAINABILITY AND ENVIRONMENTAL,
SOCIAL & GOVERNANCE (ESG) FACTORS
The concept of sustainability has gained significant traction in recent years, and it is
increasingly important for businesses to demonstrate their commitment to environmental
responsibility and social justice. This trend has also extended to audit practices, where
auditors increasingly consider sustainability and ESG factors when planning and
executing audits.

Auditors can help companies identify ESG risks and opportunities, assess the
effectiveness of internal controls related to sustainability and ESG, and provide assurance
on the accuracy and completeness of ESG disclosures in financial reports. In addition,
auditors can work with companies to develop and implement sustainability and ESG
strategies and help companies meet the growing demand for sustainability reporting.

CPAs can benefit from this trend by staying up-to-date on the latest sustainability and
ESG reporting standards and guidelines, such as those published by the Sustainability
Accounting Standards Board (SASB) and the Task Force on Climate-related Financial
Disclosures (TCFD). By doing so, CPAs can enhance their audit expertise and provide
value-added services to clients in sustainability and ESG.