1. Held in partnership with Creating Connections This document has been prepared for general guidance on matters of interest only, and does not constitute professional advice. You should not act upon the information contained in this document without obtaining specific professional advice. No representation or warranty (express or implied) is given as to the accuracy or completeness of the information contained in this document, and, to the extent permitted by law, PwC, IIRC or their licensors do not accept or assume any liability, responsibility or duty of care for any consequences of you or anyone else acting, or refraining to act, in reliance on the information contained in this document or for any decision based on it. Copyright 2014. All rights reserved. Permission is granted to make copies of these slides, provided that all logos, disclaimers, copyright notices and acknowledgements on the slides are retained, and each copy bears the following credit line: "Copyright 2014. All rights reserved. Used with permission of the IIRC and PwC.“ In this document, PwC refers to the PwC network and/or one or more of its member firms, each of which is a separate legal entity. Please see www.pwc.com/structure for further details. IIRC refers to the International Integrated Reporting Council. Acknowledgements of third party source materials are contained on the relevant slides.

2. Held in partnership with Creating Connections Building Trust in Information and Reporting Processes

3. Held in partnership with Creating Connections Session objectives  Welcome and introduction  Assurance in the context of  Panel perspectives  Table discussion  Panel Q&A and debate  Feedback and closing remarks

4. Held in partnership with Creating Connections Introductions Chair and panel members  Michael Nugent, Chair, Technical Director – Framework Development at the IIRC  Merran Kelsall, IAASB, and Chairman & CEO, Australian Auditing and Assurance Standards Board  Kathy Nieland, PwC US Assurance and leader of the US Sustainable Business Solutions Practice  Diana Hillier, PwC Partner, Author of ‘Inspiring Trust Through Insight’  Roger Simnett, University of New South Wales, Member of the IIRC Assurance Working Group and Assurance Steering Committee Supported by:  Rachel Poole, PwC London, Integrated Reporting and Sustainability Assurance specialist  Nicolette Behncke, PwC Germany, Integrated Reporting and Sustainability Assurance specialist

5. Held in partnership with Creating Connections Held in partnership with Creating Connections Assurance on Michael Nugent Chair, Technical Director – Framework Development at the IIRC

6. Held in partnership with Creating Connections ■ Discussion Paper and Consultation Draft feedback ■ Importance of suitable criteria ■ Aims of ■ Quality of information ■ Corporate reporting ■ Broad base of capitals ■ Value creation over time Assurance and the IIRC

7. Held in partnership with Creating Connections Credibility and Trust ■ “Investment grade” reports ■ Assurance = enhanced confidence ■ Other mechanisms, e.g.: ■ Leadership ■ Internal systems ■ Internal audit ■ Stakeholder involvement

8. Held in partnership with Creating Connections 8 ■ Continue the debate ■ Roundtables ■ Responses – December ■ Summary early 2015 ■ Next steps Overview Source: http://www.theiirc.org/resources-2/assurance/

9. Held in partnership with Creating Connections 9 ■ Introduction to the Discussion ■ About ■ Benefits of assurance ■ Practical and technical challenges ■ Exploration of Issues ■ Fundamental assurance concepts ■ Analysis of the Framework ■ Assurance standards for ■ Methodology issues Assurance on

10. Held in partnership with Creating Connections 10 AccountantsOthers Technical issuesIAASB, national standard-setters, and accounting firms Other standard- setters and non- accountant practitioners Policy and other issues IFAC, IFAC Boards, and national / regional bodies Investors, report preparers, academics, regulators, civil society Stakeholders

11. Held in partnership with Creating Connections Practical Implementation Challenges 1.The nature of assurance 2.Competent practitioners 3.Robust internal systems 4.The cost of assurance 11

12. Held in partnership with Creating Connections Technical Challenges 1.Methodology issues Materiality Reporting boundary Connectivity Completeness Narrative reporting and future-oriented information 2.Levels of assurance 3.Using existing assurance 12

13. Held in partnership with Creating Connections Held in partnership with Creating Connections Merran Kelsall IAASB, and Chairman & CEO, Australian Auditing and Assurance Standards Board

14. Held in partnership with Creating Connections The Nature of Assurance

15. Held in partnership with Creating Connections 15 “Reasonable” (audit) “In my opinion … “ Limited (review) “Based on the work I have done, nothing has come to my attention …” 0 % 100 % Absolute assurance (unattainable) No assurance Levels of Assurance

16. Held in partnership with Creating Connections Held in partnership with Creating Connections Diana Hillier PwC Partner, Author of ‘Inspiring Trust Through Insight’

17. Held in partnership with Creating Connections PwC ‘Inspiring Trust Through Insight’ Source: http://www.pwc.com/gx/en/audit-services/publications/inspiring-trust.jhtml

18. Held in partnership with Creating Connections Held in partnership with Creating Connections Kathy Nieland PwC, Assurance Partner, Head of Sustainable Business Solutions Practice (US)

19. Held in partnership with Creating Connections Held in partnership with Creating Connections Table group discussion 20 minutes

20. Held in partnership with Creating Connections Assurance Challenges – Group Discussion Implementation challenges: 1.The nature of assurance 2.Competent practitioners 3.Robust internal systems 4.The cost of assurance Technical challenges: 1.Methodology issues  Materiality  Reporting boundary  Connectivity  Completeness  Narrative reporting and future-oriented information 2.Levels of assurance 3.Using existing assurance

21. Held in partnership with Creating Connections Held in partnership with Creating Connections Panel Q&A 20 minutes

22. Held in partnership with Creating Connections Wrap up ■ www.theiirc.org/assurance www.theiirc.org/assurance ■ Join the debate on the LinkedIn group ■ Submit a response to assurance@theiirc.org by 1 December 2014 assurance@theiirc.org