Other assurance services

Elevating your assurance services for the future
In today’s complex business environment, companies require assurance services that extend beyond the traditional audit. BDO follows a risk-based assurance approach in accordance with ISAE 3000. This standard is designed for engagements other than audits or reviews of historical financial information, allowing us to provide assurance on a range of business areas, from non-financial disclosures to forward-looking data. Our procedures are tailored to address the risks of material misstatement and ensure stakeholders receive reliable and transparent reports.

We also anticipate future sustainability reporting needs, particularly as IFRS sustainability standards (SE1 and SE2) will soon become effective. These standards will help organisations disclose their sustainability-related risks and opportunities, providing forward-looking insights. Our experts are ready to assist businesses in preparing for these changes, even before they are mandatory in South Africa.

Sustainability assurance and reporting services offered by BDO include:

ISAE 3000 assurance engagements: Providing assurance over non-financial information, such as ESG reporting, compliance with regulatory requirements and other forward-looking data
Sustainability assurance: Assisting businesses with sustainability reporting in anticipation of IFRS SE1 and SE2, focusing on environmental and social governance disclosures, as per the table below:

ESG materiality assessments

Readiness assessment reviews

Limited and/or reasonable assurance

Sustainability standards, such as the IFRS S1, IFRS S2 and the JSE Sustainability Disclosure Guidance, require businesses to report on their material sustainability and climate-related information. In corporate reporting, materiality is when the omitting, misstating or obscuring of information can influence the decision-making process of report users, based on the information disclosed in the report.

We assist businesses in determining or updating their sustainability materiality assessment as an input into their sustainability strategy and strategy implementation. Reporting sustainability data that is material to the business is critical as it ensures that that the organisation reports on sustainability factors that have an impact on the business and are relevant to their stakeholders.

With the changing regulatory landscape in sustainability reporting, standards such as IFRS S1 and IFRS S2 have been adopted by several jurisdictions, and other countries are mandating sustainability assurance over sustainability key performance indicators. We assist companies in getting ready for the requirements by performing reasonable procedures that will ensure that the company is ready to be assured.

Assurance readiness offers businesses a strategic advantage. As setting ambitious targets becomes increasingly common, an organisation whose sustainability-related information is ready for assurance indicates the presence of mature data collected through effective controls, which paves the way for external assurance.

Investors and stakeholders rely on the sustainability data reported by businesses. External assurance on this reported information is crucial, as it not only strengthens the credibility and transparency of the data but also instils confidence in its accuracy.

Internal controls assurance: Offering assurance on the effectiveness of internal controls over financial reporting (ICFR), ensuring robust systems and practices are in place, as per the table below:

Sustainability integration into internal audit plans

For businesses to generate accurate and reliable sustainability data, the integration of internal control principles and procedures, roles and responsibilities, including oversight, is critical. We assist companies in their journey towards incorporating sustainability into their organisation with the following:

Evaluating the adequacy of the organisation's sustainability-related policies, procedures and guidelines
Verifying the organisation's sustainability data's accuracy, completeness and adherence to applicable sustainability standards, e.g. GRI, IFRS S1&S2, SASB and JSE guidelines.
Identifying potential business risks related to sustainability factors and assessing the effectiveness of related internal controls
Advising management and the board on sustainability reporting and performance improvement practices.

Compliance assurance: Evaluating and providing assurance on compliance with industry regulations, ensuring businesses meet the required legal and operational standards.
Agreed-upon procedures: Tailored assurance services based on specific client needs, including verification of data or compliance with specific regulations.