The American Institute of Certified Public Accountants (AICPA) Auditing Standards were designed to work exclusively with financial statements based on the standards of the Financial Accounting Standards Board (FASB). In contrast, the Proposed AICPA Attestation Standards on Sustainability (Proposed Attestation Standards) must work with all sustainability reporting standards, such as the Global Reporting Initiative (GRI) Standards, European Sustainability Reporting Standards (ESRS), and the IFRS (International Financial Reporting Standards) Sustainability Disclosure Standards.[1] These three standards use various materiality terms, as explained in exhibit 1[2] below. This contradictory terminology and broad nature of materiality in sustainability reporting create a “materiality paradox.”
The American Institute of Certified Public Accountants (AICPA) Auditing Standards were designed to work exclusively with financial statements based on the standards of the Financial Accounting Standards Board (FASB). In contrast, the Proposed AICPA Attestation Standards on Sustainability (Proposed Attestation Standards) must work with all sustainability reporting standards, such as the Global Reporting Initiative (GRI)…
Premium Membership Required
You must be a Premium member to access this content.
