Guidance - Auditor climate related reporting responsibilities under ISA (UK) 720
14 February 2022
The FRC has today published a new FRC Staff Guidance, Auditor responsibilities under ISA (UK) 720 in respect of climate related reporting by companies required by the Financial Conduct Authority
. This staff 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.
Increasingly auditors have requested guidance from the FRC, in respect of their specific responsibilities under ISA (UK) 720, following the introduction of TCFD aligned climate-related disclosure requirements for listed companies by the Financial Conduct Authority (FCA). In the FRC’s ESG Statement of Intent
, published in July 2021 we stated that the FRC will monitor the need for guidance on ESG-related matters and issue audit and assurance guidance at the national level as appropriate. The guidance note is designed to address this commitment.