Companies Act 2014 section 1621

Independence, objectivity and professional scepticism

Section 1621 extends the existing independence, objectivity and professional scepticism requirements that apply to statutory auditors to cover those carrying out assurance of sustainability reporting.

• The independence rules in sections 1533 to 1541, originally designed for statutory audits, now also apply to sustainability reporting assurance engagements
• Key terminology is adapted: "statutory audit" becomes "assurance of sustainability reporting," and "key audit partner" becomes "key sustainability partner"
• References to the audited undertaking are read as references to the company whose sustainability reporting is being assured, and "audit working papers" become "assurance working papers"
• Any other necessary modifications are permitted to ensure the independence framework operates appropriately in the sustainability assurance context