ISAE 3000

ISAE 3000
Name	ISAE 3000
Issued by	International Auditing and Assurance Standards Board
First issued	2003
Revised	2013
Scope	Assurance engagements other than audits or reviews of historical financial information

ISAE 3000 ISAE 3000 is an international assurance standard established to govern assurance engagements other than audits or reviews of historical financial information. It provides a framework for practitioners performing assurance on non-financial information and integrates concepts used by institutions such as International Federation of Accountants, International Auditing and Assurance Standards Board, International Ethics Standards Board for Accountants, European Commission, United Nations, World Bank and International Organization for Standardization. The standard is widely referenced by firms including Big Four (auditing)#Deloitte, Big Four (auditing)#PwC, Big Four (auditing)#EY, Big Four (auditing)#KPMG and by regulators like Financial Conduct Authority, Securities and Exchange Commission, European Securities and Markets Authority, Financial Reporting Council, Australian Securities and Investments Commission and Canadian Public Accountability Board.

Overview and Scope

ISAE 3000 sets out requirements for assurance engagements performed by professional accountants and legal entities such as PricewaterhouseCoopers, Ernst & Young, Deloitte Touche Tohmatsu Limited, KPMG International, Grant Thornton International, BDO Global, RSM International and national bodies including Institute of Chartered Accountants in England and Wales, Chartered Professional Accountants of Canada, Institute of Chartered Accountants of India, Institute of Chartered Accountants in Australia, New Zealand Institute of Chartered Accountants, South African Institute of Chartered Accountants and Institute of Singapore Chartered Accountants. It applies where practitioners provide assurance on matters connected to frameworks developed by organizations like Global Reporting Initiative, Sustainability Accounting Standards Board, Task Force on Climate-related Financial Disclosures, International Integrated Reporting Council, Carbon Disclosure Project and ISO 14001 programs. The scope excludes engagements covered by standards such as International Standard on Auditing 700 and International Standard on Review Engagements 2400 and references institutional frameworks like European Green Deal, Paris Agreement, United Nations Global Compact, OECD Guidelines for Multinational Enterprises and IFRS Foundation initiatives.

Definitions and Key Principles

Key terms and principles in ISAE 3000 are aligned with definitions promoted by International Financial Reporting Standards Foundation, International Accounting Standards Board, International Public Sector Accounting Standards Board, Committee of Sponsoring Organizations of the Treadway Commission, COSO ERM Framework, Basel Committee on Banking Supervision, International Organization of Securities Commissions and World Health Organization guidance where public-interest aspects emerge. Concepts such as independent practitioner, ethical requirements, professional skepticism, materiality, and evidence are cross-referenced with bodies including International Ethics Standards Board for Accountants, Public Company Accounting Oversight Board, Financial Stability Board, European Banking Authority, International Labour Organization and United Nations Environment Programme. Definitions also reflect interfaces with sectoral regulators like Federal Reserve System, Bank of England, People's Bank of China, Reserve Bank of India and standards setters such as American Institute of Certified Public Accountants and Institute of Internal Auditors.

Requirements and Procedures

The standard mandates planning, risk assessment, evidence gathering, quality control and documentation procedures practiced by firms like McKinsey & Company when advising on assurance-related processes, or by assurance providers working with World Economic Forum stakeholders. It prescribes engagement acceptance criteria referencing legal frameworks such as Sarbanes–Oxley Act of 2002, European Union Accounting Directive, Companies Act 2006, Securities Act of 1933 and Dodd–Frank Wall Street Reform and Consumer Protection Act where applicable to assurance boundaries. Procedures encompass obtaining sufficient appropriate evidence through inspection, observation, confirmation and analytical procedures echoing methodologies of International Standards on Auditing, ISO 9001, Good Manufacturing Practice and guidance from institutions like Food and Agriculture Organization, International Maritime Organization and International Civil Aviation Organization when sector-specific considerations arise.

Reporting and Assurance Statements

ISAE 3000 defines how assurance reports and assurance statements should be structured, including form, wording, and distinctions between reasonable and limited assurance, as adopted by entities such as Nestlé, Unilever, BP, Shell plc, ExxonMobil, Siemens, Microsoft, Apple Inc., Amazon (company), Facebook, Alphabet Inc. and Tesla, Inc. for sustainability and non-financial disclosures. Reports are expected to reference responsible parties, subject matter, criteria, scope, and practitioner conclusions and are influenced by disclosure expectations from European Commission non-financial reporting directives, United Kingdom Corporate Governance Code, Shareholders Rights Directive, and investor stewardship codes like UK Stewardship Code and Principles for Responsible Investment. Assurance statements interface with assurance practices endorsed by Carbon Trust, S&P Global Ratings, Moody's Investors Service, Standard & Poor's, International Sustainability Standards Board and Global Reporting Initiative.

Relationship to Other Standards and Regulatory Context

The standard operates alongside International Standards on Auditing, International Standard on Review Engagements, International Standard on Quality Management 1, ISAE 3410, ISAE 3420 and sector-specific guidance from authorities such as European Banking Authority, Commodity Futures Trading Commission, International Telecommunication Union and World Health Organization. National adoption processes have involved legislative and regulatory actors such as UK Financial Reporting Council, Australian Accounting Standards Board, Canadian Public Accountability Board, Japanese Financial Services Agency, China Securities Regulatory Commission and Securities and Exchange Board of India. The interplay with international policy instruments like the Paris Agreement and corporate governance frameworks including OECD Guidelines for Multinational Enterprises shapes enforcement, market practice and stakeholder expectations.

Implementation, Adoption, and Practical Considerations

Practical implementation requires capacity-building by professional bodies including International Federation of Accountants, Institute of Chartered Accountants of Scotland, Association of Chartered Certified Accountants, Certified Public Accountants of Pakistan, Hong Kong Institute of Certified Public Accountants and training providers such as Coursera, edX, Harvard Business School Online and consulting firms like Accenture, Boston Consulting Group, Bain & Company to address methodologies for assurance over environmental, social and governance matters used by corporations like Boeing, Airbus, Walmart, Procter & Gamble, Johnson & Johnson and Toyota Motor Corporation. Challenges include defining subject-matter criteria, ensuring independence relative to organizations like International Olympic Committee, FIFA, World Trade Organization, European Central Bank and developing practitioner competence in areas influenced by regulators such as Financial Conduct Authority and courts including European Court of Justice and Supreme Court of the United States. Adoption continues to evolve with initiatives from IFRS Foundation, International Sustainability Standards Board, Global Reporting Initiative and investor groups such as Ceres and Climate Action 100+ driving demand for consistent assurance.

Category:Accounting standards