The AICPA and the Center for Audit Quality have released a new roadmap to provide audit practitioners with a blueprint to support companies in achieving their environmental, social and governance (ESG) reporting goals. ESG Reporting and Attestation: A Roadmap for Practitioners provides tools to help independent auditors inform their clients’ approach to ESG disclosures, help clients determine whether to seek an attestation report on ESG information, and help determine how to report ESG information in an SEC submission.
The organizations have released the roadmap amid increasing calls for public companies to incorporate ESG information, including the impact of climate change and diversity and inclusion metrics, into SEC submissions such as proxy statements, annual reports and quarterly reports. The roadmap also examines the history and evolution of ESG reporting, the latest developments driving ESG’s inclusion in SEC filings and current practices of disclosure and attestation over ESG information disclosed in SEC filings.
“With growing company interest in disclosing ESG information in SEC submissions, this is a very timely resource for audit practitioners who are being called on to perform assurance engagements over these ESG disclosures,” says Desiré Carroll, AICPA senior manager – public accounting. “The roadmap explores how and why ESG disclosures are being included in SEC submissions and provides practitioners with insight into the risk and legal considerations associated with performing assurance engagements over such information.”