Latvia's Ministry of Finance reported that the Cabinet has approved draft amendments to the Audit Services Law to implement European Union requirements on auditing and sustainability assurance. The proposals would introduce temporary simplified registration for certain third country sustainability assurance providers and make information about third country auditors registered in Latvia available through the European Single Access Point (ESAP).
The simplified registration route would cover third country auditors and audit firms providing sustainability assurance for companies incorporated in third countries whose transferable securities are admitted to an EU regulated market. It would apply to assurance of sustainability reports prepared for financial years through Dec. 31, 2030. Applicants would submit substantially less information to the ministry than under the general registration procedure, principally concerning sustainability expertise, assurance standards, compliance with independence requirements and quality control.
Information on third country auditors and audit firms registered in Latvia would be supplied to ESAP by the Latvian Association of Certified Auditors. The draft would also make explicit in the definition of lead sustainability auditor the existing requirement that the role be performed by a certified auditor authorized to provide sustainability assurance. It would remove the requirement for auditor reports to address nonfinancial statements, reflecting their replacement by sustainability reporting under EU rules.