Companies Act 2014 section 1642

System of quality assurance

Section 1642 requires both the Supervisory Authority and recognised accountancy bodies to extend their existing quality assurance systems to cover the assurance of sustainability reporting.

• The Supervisory Authority must ensure its existing quality assurance framework includes oversight of sustainability reporting assurance work.
• Recognised accountancy bodies must similarly extend their quality assurance systems to cover sustainability reporting assurance carried out by their own members (for entities other than public interest entities).
• Accountancy bodies must also quality-assure non-members who carry out sustainability reporting assurance and who fall under the body's regulatory remit.
• Third-country auditors and audit entities registered for sustainability reporting assurance purposes must be included within the Supervisory Authority's quality assurance framework.