Interview with Tom Seidenstein, Chair of the International Auditing and Assurance Standards Board (IAASB) and Josephine Jackson, Vice-Chair of the IAASB
-Development of ISSA 5000 and future activities of the IAASB-
From January 21 to 24, 2025, Tom Seidenstein, IAASB Chair and Josephine Jackson, IAASB Vice-Chair visited Japan. Tetsuya Mogi, JICPA Chairman and President and Takako Fujimoto, JICPA Deputy President interviewed with Mr. Seidenstein and Ms. Jackson.
（Mogi, JICPA Chairman and President）
Firstly, I would like to talk about International Standard on Sustainability Assurance 5000 "General Requirements for Sustainability Assurance Engagements" (ISSA 5000), which was published in November 2024. We believe the publication of ISSA 5000 is a great milestone for the IAASB as well as for stakeholders across the globe. Tom, could you please briefly introduce the key features of ISSA 5000?
（Seidenstein, IAASB chair）（Seidenstein, IAASB chair）
The IAASB's new standard on sustainability assurance, ISSA 5000, is developed to serve as a global baseline for sustainability assurance to complement the work done by sustainability reporting standard setters, such as the International Sustainability Standards Board (ISSB). Any qualified assurance practitioner can apply it to use against any acceptable sustainability disclosure framework or standards. The standard works for both limited and reasonable assurance engagements. In fact, before finalizing the requirements, we ensured differences in work effort for limited and reasonable assurance were clearer.
（Fujimoto, JICPA Deputy President）
ED ISSA 5000 was published in August 2023, and we heard the IAASB received a lot of feedback from various stakeholders across the globe. Josephine, could you please tell me about key areas that were significantly discussed by the IAASB in order to respond to the feedback, including what were changed, what were not changed, as well as reasons behind that?
（Jackson, IAASB Vice-Chair）（Jackson, IAASB Vice-Chair）
We received an unprecedented level of input and feedback during the public consultation for ISSA 5000 in 2023, which engaged thousands of stakeholders in either our formal consultations (roundtables and comment process), webinars, or other events.
The most important feedback was the incredible support for the standard, and that a global baseline of high-quality assurance standards, like reporting standards, should greatly improve confidence in sustainability reporting.
Some of the common themes we heard included requests for more specifics and clarification around:
•Scope and applicability of the standard
•Sustainability matters, information & disclosures
•Relevant ethical and quality management requirements
•Materiality
•Engagement team, using the work of others, and group engagements
•And limited vs reasonable assurance
In addition, there was an overwhelming request for implementation guidance. So, in finalizing the standard, we worked to ensure that areas were clarified, in some cases within the standard's requirements and in some cases within the application material and in other cases, in our implementation guidance.
（Mogi, JICPA Chairman and President）
I assume the publication of ISSA 5000 is the start of the journey, and the adoption and effective implementation of the standard across the globe is the final goal for the IAASB. Tom, could you please talk about the IAASB's plan toward this goal, for example, implementation support activities relating to ISSA 5000?
（Mogi, JICPA Chairman and President）（Seidenstein, IAASB chair）
On January 27, we are publishing a suite of guidance and support materials, alongside the IESBA's publication of its new sustainability-related ethics and independence standards.* These guidance materials include an implementation guide, fact sheet, FAQ document, and an FAQ video series. This is the first time that we have been able to release such broad implementation support so close to a standard's publication.
During 2025, we'll also hold webinars on a series of specific topics that will go into further details. We also have extensive outreach planned and will use these conversations to identify if there are additional needs from our stakeholders.
* IAASB and IESBA Unveil New Standards and Guidance to Strengthen Sustainability Reporting and Assurance
（Fujimoto, JICPA Deputy President）
Now the IAAB's strategy and work plan for 2024 to 2027 has begun, and I understand that several new projects have already been or will been started. Among these, a lot of practitioners in Japan are particularly interested in the IAASB's initiatives relating to technology. Tom, could you please tell me the IAASB's initiatives relating to technology?
（Fujimoto, JICPA Deputy President）（Seidenstein, IAASB chair）
Last September, the IAASB approved a new Technology Position that will guide how we adapt our work and standards to embrace the intersection of audit, assurance and technology. The IAASB believes that embracing technology and having a measured approach to standard-setting will help ensure the relevance of our standards, improve audit quality, and encourage a new generation of professionals to join the profession. The Position includes eight key actions that help us embrace this new Position. These include embracing innovation, removing barriers, and introducing new requirements and guidance.
We are currently conducting a gap analysis of our standards to consider challenges and identify next steps. We have also begun a new project on audit evidence and risk response that is likely to be the first project where stakeholders will see our Technology Position come into play, given how relevant technology is to both audit evidence and risk response.
（Mogi, JICPA Chairman and President）
Tom and Josephine, could you give a message to Japan for the readers of the JICPA website?
（Seidenstein, IAASB chair）
The IAASB and I are deeply appreciative of JICPA's unwavering support for global standards. Your collaboration exemplifies the shared commitment to enhancing trust in the financial reporting ecosystem. As an independent standard-setting body, we remain dedicated to upholding robust due process and delivering high-quality standards that serve the public interest. Together, we are advancing the integrity and transparency of the global economy, and we look forward to continuing our fruitful partnership.
（Jackson, IAASB Vice-Chair）
On a similar note, we are deeply grateful for JICPA's steadfast support for ISSA 5000. Your official statement in November 2024 underscores the critical importance of this landmark standard and reflects our shared commitment to advancing high-quality sustainability assurance. Your leadership and engagement are instrumental in fostering global trust and confidence in sustainability reporting, and we look forward to building on this collaboration to drive meaningful progress in the public interest.
（From the left： Ms. Fujimoto, Mr. Seidenstein, Ms. Jackson, Mr. Mogi）