GRI ESRS-Professional Dumps Questions Answers

ACSRD assurance engagementprimarily focuses onensuring compliance with the ESRSand theproper digital tagging of sustainability information. The elements included in the assurance scope are:

B. Compliance of the reporting with the relevant ESRS✅

Assurance engagements under the CSRDverify whether sustainability reports comply with the European Sustainability Reporting Standards (ESRS).

Theassurance provider reviews disclosuresto ensure alignment withESRS requirements, includingdouble materiality assessments and mandatory data points​.

C. Compliance with the requirement to tag the sustainability reporting✅

CSRD requires that sustainability information bedigitally taggedusing theEuropean Single Electronic Format (ESEF)to ensuremachine readability and comparability​.

Assurance providers verify the correct application of this tagging requirement, ensuring consistency withXBRL (eXtensible Business Reporting Language) standards.

ACSRD assurance engagement does not cover financial statements.

Financial audits are conducted separately, under theInternational Financial Reporting Standards (IFRS) or local GAAP requirements.

Sustainability assurance only applies tonon-financial sustainability disclosuresunderESRS​.

Why is A. Verification of the company's financial statements❌incorrect?Conclusion:Thescope of a CSRD assurance engagementincludes:✅Compliance with ESRS(B)✅Verification of digital tagging(C)❌Not financial statement audits(A)

Official Commission Delegated Regulation (EU) 2023/2772, various EFRAG guidance documents, and CSRD-related references:

Commission Delegated Regulation (EU) 2023/2772, ESRS assurance scope​.

EU Sustainable Finance Platform Report (2025): Confirmation ofdigital tagging as part of CSRD assurance​.

Understanding Impact and Financial Materiality under ESRSTheESRS frameworkis based ondouble materiality, which comprises:

Impact Materiality– This relates to the organization’s potentialpositive or negative impactson people or the environment, irrespective of whether these impacts translate into financial effects​.

Financial Materiality– This refers to sustainability matters thataffect the company's financial position, including risks and opportunities that influence financial outcomes over theshort, medium, or long term​.

(A) False:A sustainability topic can be materialeven if it does not directly affect financial performance; it may still beimpact material​.

(D) False:Impact and financial materiality are equally importantunder ESRS. Neither is prioritized over the other​.

(E) False:TheESRS process generally begins with impact materiality, not financial materiality​.

Commission Delegated Regulation (EU) 2023/2772, Section 3.3 on Double Materiality​

EFRAG Materiality Guidance on ESRS, which provides methodologies for assessing impact and financial materiality​

Why the other options are incorrect:References:

TheCorporate Sustainability Reporting Directive (CSRD)significantly strengthens sustainability reporting and assurance requirements compared to theNon-Financial Reporting Directive (NFRD). The key shift introduced by CSRD is themandatory assurance of sustainability reports, which includesdefined standards, scope, and providers.

Key Differences Between CSRD and NFRD:Feature

NFRD (Previous Directive)

CSRD (New Directive)

Assurance Requirement

Voluntary

Mandatory

Who Can Provide Assurance?

Organizations could choose any provider

Member States decide between statutory auditors and independent assurance providers

Assurance Scope

Limited guidance

Defined ESRS-based scope

Assurance Level

No formal requirement

Limited assurance initially, transitioning to reasonable assurance by 2028

Reporting Scope

Limited to large public-interest entities

Expanded to all large companies and listed SMEs

Disclosure Framework

High-level requirements

Detailed ESRS framework with sector-specific standards

Mandatory Assurance:

Unlike the NFRD, the CSRDrequires sustainability reports to be assuredby an independent external provider.

The assurance process followsESRS standardsto ensure consistency​.

Defined Standards and Scope:

CSRD specifies thescope of assurance, focusing onmaterial sustainability disclosures, governance, andrisk disclosures.

TheEuropean Commissionis developing a standard methodology for assurance​.

Transition to Reasonable Assurance:

Initially,limited assuranceis required.

ByOctober 2028, the EU aims to transition toreasonable assurance, aligning sustainability assurance with financial audits​.

Option A: Incorrect – TheCSRD makes assurance mandatory, whereas theNFRD had a voluntary approach.

Option B: Incorrect – TheCSRD does not eliminate sustainability reporting assurance; it makes it morestructured and rigorous.

Key Provisions of the CSRD:Why Other Answers Are Incorrect:Thus, thecorrect answer is C:The CSRD introduces mandatory assurance for ESRS reporting, with defined requirements for scope, standards, and providers.

Official References:

CSRD Directive (EU) 2022/2464– Assurance Provisions​.

EU Platform on Sustainable Finance Report (February 2025)– Assurance and Compliance Guidelines​.

CEAOB Guidelines on Assurance of Sustainability Reporting (2024)– Limited Assurance Transitioning to Reasonable Assurance​.