FRC guidance on auditor climate-related reporting responsibilities under ISA (UK) 720
By Anne Adrain, Head of Sustainability and Reporting
17 February 2022
This article highlights a new FRC staff guidance note on auditors’ responsibilities under ISA (UK) 720 in respect of climate-related reporting.
The Financial Reporting Council (FRC) has published a new FRC Staff Guidance Note, Auditor responsibilities under ISA (UK) 720 in respect of climate-related reporting by companies required by the Financial Conduct Authority.
This staff guidance note may assist auditors in determining their responsibilities under ISA (UK) 720 in their audits of financial statements of companies that are required to include climate-related disclosures consistent with the Taskforce on Climate-related Financial Disclosures (TCFD) Recommendations.
The guidance also includes a brief reminder of auditor’s responsibilities under ISA (UK) 720 in respect of the company’s Streamlined Energy and Carbon Reporting (SECR) disclosures.
The publication has been issued in response to requests from auditors for further guidance on how to meet their responsibilities under ISA (UK) 720 in relation to the newly introduced requirements for TCFD-aligned climate disclosures.