Emissions reporting: Institute supports paper

The Institute has welcomed the release of a guidance paper issued by the Department of Climate Change (DCC) on the assessment of emissions intensive trade exposed (EITE) activities under the Carbon Pollution Reduction Scheme (CPRS).

The guidance includes the assessment process, which is designed to inform the government’s decision on which activities in the economy are eligible to receive EITE assistance. The paper also outlines the audit and assurance requirements for the data, which is to be audited to the same level as financial statements.

The guidance requires lead auditors to be Registered Company Auditors (RCAs), and the audit team to have a suitable mix of skills and experience, including assurance, technical financial and greenhouse gas emission skills. Further, the assurance engagement is to be conducted in accordance with standards issued by the Auditing and Assurance Standards Board (AUASB) and the Accounting Professional and Ethical Standards Board (APESB).

The Institute’s Head of Audit Andrew Stringer said, 'It is also pleasing that the assurance and auditing engagement must be conducted in accordance with ASAE 3000 Assurance Engagements Other than Audits or Review of Historical Financial Information, issued by the AUASB. The necessity to comply with the independence requirement of the APESB’s Code of Ethics is also very important.'

However, members are warned of the tight deadlines, as relevant entities are required to have all data prepared, audited and submitted to the DCC by Friday, 1 May 2009. The paper mentions that the government may accept a lower level of assurance where this is necessary to meet the deadlines for submission, or where there are issues associated with data availability or completeness, provided this is disclosed in the assurance report.

Article last updated 19 February 2014