Sustainability Reporting – Assurance Readiness

COSO: Effective Internal Controls over Sustainability Reporting (ICSR)

Workshops

Consent Decrees, Monitorships & High Stakes Audits

Sustainability reporting is now mandatory, driven by regulations, expectations of capital markets, customers, and other key stakeholders. Stakeholders demand reliable data and information to make their decisions. Assurance – once voluntary – is becoming mandatory.

The road to assurance can be rocky. Limited or reasonable assurance? Financial auditor, other accounting firm, or technical auditor? What will they look at? What will they look for? Who should be involved on the company’s side? What happens if we don’t pass? If we do pass, are we home free?

Assurance readiness can provide companies with incredible value. Furthermore, the value applies throughout the full life cycle of the assurance: selection of assurance provider; audit preparation; observation and advocacy during the engagement; and follow-up. DHC provides a seasoned professional with experience in external assurance, internal audit, second-line management audits, and from experience on the Volkswagen monitor team. He is an author of COSO’s “Achieving Effective Internal Controls over Sustainability Reporting (ICSR)”, released to wide acclaim in 2023. In fact, many firms have embraced COSO ICSR as an input to their assurance protocols.

The same value applies to any high-stakes scenario: enforcement action; audit to terms of a consent decree; review by capital market analysts; audit to terms of an asset purchase agreement – even a high-profile internal audit.

"When you’re ready for an audit, you’re ready for anything!!!"

Our Services

Sustainability Assurance Readiness

Assurance will be mandatory under the EU’s ESRA, California climate disclosure laws – and possibly other regulations. Readiness helps companies avoid being called out in public auditor reports.

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Internal Controls: Design, Testing Readiness

COSO's ICSR outlines a two-step process for applying financial reporting principles to sustainability reporting: design evaluation followed by implementation testing. This is similar to how auditors approach their work.

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Workshops

COSO ICSR workshops tailored to your organization, or to your functional area (Controller, IT, Procurement, etc.). Highly rated at Compliance Week, Institute of Internal Auditor conferences.

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Observation and Advocacy

Steer the assurance process to your company’s advantage, from the selection of the assurance provider to the procedures themselves, and to reporting and follow-up. Avoid scope creep and irrelevant findings.

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About Us

Douglas Hileman (FSA, CRMA, CPEA, P.E.) is founder and president of Douglas Hileman Consulting LLC.

Mr. Hileman is an author of COSO’s “Achieving Effective Internal Controls Over Financial Reporting (ICSR)”, released to wide global acclaim in 2023. This document is designed to bridge the gap between those who understand “internal controls” (auditors, finance) and those who don’t (Environmental, HR, Operations, Procurement, Safety – who happen to be the source of much of the data and information in Sustainability reporting and disclosures. Many assurance providers look to COSO ICSR as foundational to developing their assurance protocols.

The Problem With Audits – and Auditors

Auditors may regard audits as a challenge: they have to find something! Gotcha! Or they may regard audits as a helpful exercise. More is better – but “more” is not always “helpful.”

Auditees may regard audits as a nuisance, a make-work exercise, or even a threat.

It shouldn’t be that way. Auditees have the most to gain – and the most to lose – from an audit gone south. Readiness is the key. Understand audit objectives, anticipate questions, align with colleagues on responsibilities. Don’t be afraid to ask questions, or even to challenge an auditor. Strategize about desired outcomes, and work to achieve them. Above all, be professional.