Does emphasizing management bias decrease auditors’ sensitivity to measurement imprecision?

Comments on Exposure Draft for Proposed ISSA 5000, sustainability assurance engagements by the Auditing and Assurance Standards Committee of AFAANZ

“…We further note that while management bias is emphasised in application material relating to an assessment of management's method, assumptions and data, estimation uncertainty is discussed as an overarching consideration in paragraphs A390-A392. We note research (Van Landuyt, 2021) highlighting that emphasis on management bias can have the unintended consequence of reducing sensitivity to measurement imprecision (i.e., estimation uncertainty). Given the significance of estimation uncertainty in sustainability assurance, we encourage the IAASB to reflect on whether there is sufficient balance in the coverage of estimation uncertainty and management bias in the application material supporting paragraphs 134L and 134R.…”