Nachhaltigkeit
Nachhaltigkeit
2 May 2024

Press release:
The upcoming Mandatory Audit for Sustainability Reports is challenging the German Economy

German Chamber of Public Accountants (WPK) advocates the gradual establishment of a market for the confirmation of sustainability information – The draft law of the Federal Ministry of Justice on the implementation of the European Corporate Sustainability Reporting Directive (CSRD) into German law has been available since March 22, 2024. The WPK commented on April 19, 2024 (in German).

Andreas Dörschell, President of the WPK: “Sustainability reporting and the introduction of mandatory auditing for these reports will be major challenges for the German economy in the coming years. Companies are dependent on the expertise of a suitable number of qualified auditors. As a matter of principle, a company's chosen auditor should also be considered the auditor of the sustainability report. Overall, the WPK welcomes the proposal for a one-to-one implementation of the CSRD, but sees potential for optimization in this and other points for the gradual development of a market for the confirmation of sustainability information."

The central points of the WPK's statement are:

Uniform auditor examination

The WPK is in favor of integrating the sustainability audit into the auditor's examination. Just as all prospective auditors must acquire and demonstrate the professional knowledge required to audit financial reporting, this must also apply to the audit of sustainability reporting. Every appointed professional should be an auditor and sustainability auditor.

Registration/training obligation

The fulfillment of the continuing education requirement should not be a prerequisite for registration as an auditor of sustainability reports. Instead, subsequent further training should be made possible in which the knowledge is acquired as part of the general further training obligation. This will ensure the registration of a sufficient number of auditors for sustainability reporting. If someone does not fulfill the training obligation, this leads to de-registration.

Appointment of the sustainability auditor

It can be assumed that most companies will also appoint the auditor of the annual financial statements as the auditor of the sustainability report in order to utilize the synergy effects resulting from the audit as well as the auditor's knowledge from many years of auditing activities and to actually reduce coordination processes. The WPK therefore recommends that the duly elected auditor is also the auditor of the sustainability report, unless a resolution to the contrary is passed.

Liability

Liability for the audit or review of financial and sustainability reports must differ in the transition phase because the audits of financial reporting and the audits of sustainability reporting differ in terms of content. While the former is carried out on the basis of reasonable assurance and leads to an audit opinion (Section 322 of the German Commercial Code), the latter must initially be carried out on the basis of a review to obtain limited assurance as a result of the intended one-to-one implementation of the CSRD.

More information in the WPK's detailed statement dated April 19, 2024 (in German).

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