Page 257 - AAA Integrated Workbook STUDENT S18-J19

Audit of social, environmental and integrated reporting

Planning an assurance engagement

Planning an engagement to provide assurance over an entity’s business
performance measures and sustainability indicators involves:

 Understanding and agreeing the scope of the engagement. Assurance may be
required on the outcome and measurement of the KPIs, or on the
appropriateness and completeness of the measures chosen.

 Obtaining an understanding of the entity.

 Considering the appropriateness of the KPIs chosen in the light of this
understanding, ensuring the KPIs chosen represent the priorities of the
company.

 Reviewing and agreeing the KPIs over which assurance is to be provided,
flagging any KPIs that are not specific enough to measure accurately, and over
which assurance can therefore not be provided.

 Identifying the evidence that should be available in relation to each KPI in order
to provide an assurance conclusion.

 Considering the potential for manipulation of each KPI, to achieve the desired
result, i.e. identifying those KPIs which present the highest engagement risk.

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