Paragraph 40 InterpretationF1

In this Part—

• “accreditation” means attestation by the national accreditation body that a verifier meets the requirements set by paragraph 67(2), and the requirements of this Part and is thus qualified to carry out the verification activities pursuant to this Part;

• “analytical procedures” means the analysis of fluctuations and trends in the data including an analysis of the relationships that are inconsistent with other relevant information or that deviate from predicted amount;

• “assessment team” means one or more assessors appointed by the national accreditation body to assess a verifier pursuant to this Part;

• “assessor” means a person assigned by the national accreditation body to assess a verifier pursuant to this Part, individually or as part of an assessment team;

• “competence” means the ability to apply knowledge and skills to carry out an activity;

• “detection risk” means the risk of a verifier not detecting a material misstatement;

• “independent reviewer” means a person assigned by the verifier specifically to carry out internal review activities, who belongs to the same entity but has not carried out any of the verification activities subject to review;

• “inherent risk” means the susceptibility of a parameter in the annual emissions report to misstatements that could be material, individually or taken together, before taking into consideration the effect of any related control activities;

• “internal verification documentation” means all internal documentation that a verifier has compiled to record documentary evidence and justification of activities carried out to verify an annual emissions report pursuant to this Part;

• “lead assessor” means an assessor who is given overall responsibility for the assessment of a verifier pursuant to this Part;

• “level of assurance” means the degree of assurance that the verifier provides on the verification report based on the objective of reducing the verification risk according to the circumstances of the verification engagement;

• “material misstatement” means a misstatement that, in the opinion of the verifier, individually or when taken together with other misstatements, exceeds the materiality level or could affect the treatment of the maritime operator’s annual emissions report by the regulator;

• “materiality level” means the quantitative threshold or cut-off point above which the verifier considers misstatements, individually or taken together, to be material;

• “misstatement” means an omission, misrepresentation or error in the reported data, apart from the uncertainty permissible under this Part;

• “national accreditation body” means the United Kingdom Accreditation Service;

• “non-conformity” means—

  1. (a)

     for the purpose of verifying an annual emissions report, one of the following—

     1. (i)

        the maritime emissions and other relevant information are not reported in line with the monitoring methodology described in the emissions monitoring plan issued by the regulator;

     2. (ii)

        the reported data do not fulfil the requirements under this Part;

  2. (b)

     for the purpose of accreditation, any act or omission by the verifier that is contrary to requirements under this Part;

• “reasonable assurance” means a high but not absolute level of assurance, expressed positively in the verification opinion, as to whether the annual emissions report subject to verification is free of material misstatements;

• “site”, for the purposes of verifying the annual emissions report means a location where the monitoring process is defined and managed, including locations where relevant data and information are controlled and stored;

• “technical expert” means a person who provides detailed knowledge and expertise on a specific matter as required for the performance of verification activities for the purposes of paragraphs 45 to 61 and accreditation activities for the purposes of paragraphs 71 to 88;

• “UK ETS auditor” means an individual member of a verification team responsible for verifying an annual emissions report, other than the UK ETS lead auditor;

• “UK ETS lead auditor” means a UK ETS auditor in charge of directing and supervising the verification team, who is responsible for performing and reporting on the verification of an annual emissions report;

• “verification risk” means the risk (a function of inherent, control and detection risk) of the verifier expressing an inappropriate verification opinion when the annual emissions report is not free of material misstatements.