The Public Oversight, Accounting and Auditing Standards Authority (KGK) has extended by one year the transitional period for the authorization requirements of personnel assigned to sustainability audits.
The decision, published in the Official Gazette, allows auditors who do not hold specific sustainability audit authority to be assigned to main and alternate teams under certain conditions.
New Team Requirements
Under the new regulation, the main audit team must include a responsible auditor and at least two other auditors with sustainability audit authority.
If this condition is met, the other main and alternate team members will not be required to hold specific sustainability authorization. As a result, auditors who have not yet been authorized in this area may take part in team work.
Scope and Timing
The KGK decision will apply to sustainability audits of reporting periods ending before 1 January 2028.
The decision extends the exemption period set out in the transitional article of the Sustainability Audit Regulation by one year. This gives audit firms additional flexibility when forming their teams.
Background
The KGK Board adopted the regulation unanimously on 30 October 2026. The decision is based on the Sustainability Audit Regulation published on 17 January 2025. It aims to make staffing easier for audit firms during the transition period.
The regulation does not remove the authorization requirement for sustainability audits entirely. The main team must still include three authorized auditors, while temporary flexibility is granted for the other team members.
