Core Viewpoint - The recent public consultation by the Chinese Institute of Certified Public Accountants aims to establish a clear regulatory framework for sustainable information assurance, marking a new phase of standardization and professionalism in ESG assurance activities in China [1][2]. Group 1: Challenges in Sustainable Information Assurance - The current sustainable information assurance practices in China face challenges such as fragmented standards, significant differences in methods and indicators among assurance institutions, and inadequate risk assessment capabilities [2][3]. - The consultation draft aims to address these shortcomings by proposing key measures to standardize the assurance process and improve quality control [2][3]. Group 2: Standardization and Quality Control - The consultation draft is expected to resolve the long-standing issue of fragmentation in the industry by establishing a unified standard for the assurance process, which includes clear procedures and documentation requirements [2][4]. - Assurance institutions are required to meet specific competency thresholds, ensuring that project partners possess sufficient expertise in sustainable information [4][5]. Group 3: Incorporating International Experience and Local Adaptation - The draft incorporates international frameworks while considering local regulatory contexts, emphasizing the dual materiality principle in sustainable information disclosure [3][6]. - It encourages companies to establish ESG management committees and hire multidisciplinary talent to enhance internal ESG management [3][5]. Group 4: Enhancing Assurance Quality - Assurance quality is prioritized, with institutions needing to strengthen their quality management and independence systems [5][6]. - The draft suggests a transitional period where assurance institutions may provide both consulting and assurance services, with strict independence requirements to follow [6][9]. Group 5: Anti-Fraud Measures - The importance of anti-fraud measures in sustainable information assurance is highlighted, with a focus on using technology and cross-department collaboration to strengthen fraud detection [7][8]. - The draft proposes establishing a robust mechanism for verifying non-financial data and ensuring compliance with disclosure standards [8][9]. Group 6: Accountability and Penalty Mechanisms - The need for a comprehensive accountability system for ESG information fraud is emphasized, suggesting a dual accountability approach for both fraudulent companies and assurance institutions [9][10]. - A two-way data reporting platform between third-party institutions and regulatory bodies is recommended to facilitate the identification of high-risk entities [9].

Core Viewpoint - The recent public consultation by the Chinese Institute of Certified Public Accountants aims to establish a clear regulatory framework for sustainable information verification, marking a new phase of standardization and professionalism in ESG verification in China [1] Group 1: Challenges in Sustainable Information Verification - Current challenges in China's sustainable information verification include fragmented standards, significant differences in methods and indicators among verification institutions, and inadequate risk assessment capabilities [2] - The consultation draft aims to address these issues by proposing key measures to fill the gaps and resolve related challenges [2] Group 2: Standardization and Quality Control - The consultation draft is expected to resolve the long-standing fragmentation issue in the industry by establishing standardized procedures and requirements for verification [2] - It emphasizes the need for quality control mechanisms and clear anti-fraud requirements to provide reliable institutional guarantees for the market [1][2] Group 3: Incorporating International Experience and Local Adaptation - The draft draws on international frameworks like ISSA 5000 while considering the local context of China's nascent sustainable information disclosure and verification practices [3] - It proposes detailed requirements for dual materiality assessment and expert competency evaluation, aligning with domestic regulatory frameworks [3] Group 4: Enhancing Verification Quality - The draft sets stringent requirements for verification institutions, including the need for project partners to possess adequate competency in sustainable information [4] - It highlights the importance of maintaining independence and quality management within verification processes [5] Group 5: Addressing Fraud and Data Verification Challenges - The identification of fraud remains a significant challenge in sustainable information verification, particularly due to the lack of standardized metrics for non-financial data [7] - The draft suggests implementing technological solutions and cross-departmental collaboration to enhance data verification and fraud detection [8] Group 6: Strengthening Accountability and Regulatory Mechanisms - The establishment of a robust accountability framework is crucial, with suggestions for dual accountability for fraudulent activities involving both companies and verification institutions [9] - A two-way data reporting platform is proposed to facilitate communication between verification institutions and regulatory bodies, enhancing the identification of high-risk entities [10]

Core Viewpoint - The release of the draft "Basic Standards for Sustainable Information Assurance Business" by the Chinese Institute of Certified Public Accountants marks a new phase in the standardization of sustainable information assurance practices in China, aiming to ensure uniform quality standards for third-party intermediaries [1][2]. Group 1: Need for Unified Standards - The current sustainable information assurance practices in China are largely voluntary, with significant differences in quality management, professional ethics, and competency among various assurance providers [2]. - The lack of uniform standards leads to inconsistencies in execution procedures, conclusion formation, and assurance levels, hindering the full realization of third-party assurance value [2]. Group 2: Drafting Process and Principles - The draft was developed by referencing international standards and adapting them to China's specific context, following three core principles: maintaining public interest, highlighting the characteristics of sustainable information assurance, and leveraging international experience [2]. - The proposed standards will consist of basic standards, specific standards, and application guidelines, aligning with the corporate sustainable disclosure framework [2]. Group 3: Scope and Execution Requirements - The draft consists of four chapters with 225 articles, covering the entire process from business acceptance to report issuance, with clear objectives and detailed execution requirements [3]. - The standards apply not only to certified public accountants but also to all types of assurance providers, ensuring compliance with unified professional standards across the industry [3]. Group 4: Assurance Mechanisms and Quality Control - The draft establishes a dual assurance mechanism, addressing both reasonable and limited assurance requirements to cater to diverse information needs [4]. - Quality management and ethical standards are mandated to ensure the professionalism and reliability of assurance work, with the Institute committed to refining the draft based on feedback before final approval [4].