Assurance: Definition
Trust is of paramount importance in any industry. However, there are occasions when changes or questions arise, prompting managers, owners, and other stakeholders to verify the validity of an organization’s business processes and adherence to governance standards. To obtain this information, they may request a review from a firm that offers assurance services. Assurance reporting summarises the results of this evaluation, determining whether the organisation has successfully met the assurance objective.
For Sustainability Managers
Understanding Assurance helps you select the right frameworks and meet evolving disclosure requirements.
For CFOs
Assurance shapes mandatory reporting obligations that carry financial and legal consequences for non-compliance.
For Sustainability Reporting
Assurance is a core element of sustainability reporting that auditors and regulators expect to see addressed.
Related Terms
Extended External Reporting (EER) Assurance
Extended External Reporting (EER) Assurance refers to engagements that provide assurance on various forms of non-financial reporting, including integrated reporting, sustainability reporting, and non-financial reporting concerning environmental, social, and governance matters.
1.5°C
The Paris Agreement commits countries to limit global warming to well below 2°C above pre-industrial levels, with an even more ambitious target of 1.5°C to avert severe climate changes. Achieving the 1.5°C trajectory necessitates halving emissions by 2030 and reaching net-zero emissions by 2050.
AASB
The Australian Accounting Standards Board (AASB) is a government agency in Australia responsible for developing and maintaining financial reporting standards applicable to entities in both the private and public sectors of the Australian economy. This includes the development of accounting and external reporting standards and guidance related to sustainability-related financial information, which is aligned with principles, caters to external report users' needs, and can be subject to assurance and enforcement.
Accreditation
Accreditation refers to the procedure through which an official acknowledgment is bestowed upon a certification body or organisation, affirming their competence and ability to carry out certification assessments that are both valid and dependable. Normally, accreditation is provided by an acknowledged accreditation entity that assesses the certification body's procedures, proficiency, and adherence to global standards.
CDSB
The Climate Disclosure Standards Board (CDSB) was an international consortium of entities dedicated to aligning the global corporate reporting model by equating natural and social capital with financial capital. The CDSB has now merged into the IFRS Foundation, integrating into the ISSB, with its resources remaining accessible through its legacy website.