INDEPENDENT AUDITOR’S LIMITED ASSURANCE REPORT
To
The Board of Directors, Shareholders and Other Stakeholders of ALGAR TELECOM S/A. Uberlândia - MG
Introduction
We were hired by ALGAR TELECOM S/A. (“ALGAR TELECOM”) management to present our limited assurance report on the information contained in ALGAR TELECOM’s 2021 Integrated Report which was prepared based on the Global Reporting Initiative (“GRI”) Guidelines, Standards Version, related to year ended on 31st of December 2021.
Responsibilities of ALGAR TELECOM’s management
ALGAR TELECOM`s management is responsible for the adequate preparation and presentation of the information contained in the 2021 Integrated Report, in accordance to the GRI guidelines, Standards Version, as well as for the internal controls that ALGAR TELECOM determined as necessary to enable the preparation of such information free from material misstatement, whether caused by fraud or error.
ALGAR TELECOM's management is also responsible for the adequate preparation and presentation of information related to greenhouse gases emissions, GRI indicators 305-1 (Direct emissions of greenhouse gases - Scope 1), GRI 305-2 (Indirect emissions of greenhouse gases - Scope 2) and GRI 305-3 (Other indirect of greenhouse gases emissions - Scope 3) contained in the 2021 Book of Indicators, in accordance with the specifications of the Brazilian GHG Protocol Program: Accounting, Quantification and Disclosure of Corporate Inventories of Greenhouse Gases Emissions - Second Edition and with the internal controls that ALGAR TELECOM determined as necessary to enable the preparation of such information free from material misstatement, whether caused by fraud or error.
Responsibility of the independent auditors
Our responsibility is to express a conclusion on the information contained in ALGAR TELECOM’s 2021 Integrated Report, based on the limited assurance work carried out, in accordance with the Ibracon Technical Communication (CT) 07/2012, approved by the Federal Accounting Council (CFC) and prepared based on the NBC TO 3000 (Assurance Engagements Other than Audit and Review), issued by CFC, which is equivalent to the International Standard and Assurance Engagement ISAE 3000, issued by the International Auditing and Assurance Standards Board, applicable to non-historical information.
These standards require compliance with ethical requirements, including independence and that the work is carried out with the purpose of obtaining limited assurance that the information contained in the Integrated Report, taken together, are free from material misstatement.
A limited assurance engagement conducted in accordance with NBC TO 3000 (ISAE 3000) consists primarily in inquiries to ALGAR TELECOMs management and other ALGAR TELECOMs personnel involved in the preparation of the information contained in the 2021 Integrated Report, as well as in the application of analytical procedures to obtain evidence that enables us to conclude, in the format of limited assurance, on the information contained in the report, taken as a whole.
A limited assurance engagement also requires performing additional procedures when the independent auditor is aware of matters that lead the auditor to believe that the information contained in the Integrated Reporting, taken together, may present material misstatement.
The selected procedures were based on our understanding of the aspects related to the compilation, materiality and presentation of the information contained in ALGAR TELECOM`s 2021 Integrated Report and other work circumstances as well as our consideration of areas and processes associated with the material sustainability information disclosed in the 2021 Book of Indicators where relevant misstatements could exist. The procedures comprised:
a) The planning of the work, considering the materiality of the aspects for the ALGAR TELECOMs activities, the relevance of the disclosed information, the volume of quantitative and qualitative information and the operational and internal control systems that served as a basis for the preparation of the information contained in the ALGAR TELECOMs 2021 Integrated Report;
b) The understanding and analysis of the disclosed information related to management approach of material topics:
c) The evaluation of the sampled non-financial indicators:
• understanding of calculation methodologies and procedures for the compilation of the indicators through interviews with management in charge of the information;
• application of analytical procedures on quantitative information and inquiries about qualitative information and its correlation with the disclosed indicators in ALGAR TELECOM`s 2021 Integrated Report;
• analysis of evidence supporting the information disclosed.
d) The comparison of financial indicators with the financial statements and/or accounting records.
We believe that the evidence obtained during our work is sufficient and appropriate to support our conclusion in the limited format.
Scope and limitations
The applied procedures in a limited assurance engagement are substantially less extensive than those applied in a reasonable assurance engagement with the purpose of expressing an opinion on the information contained in the 2021 Integrated Report. Consequently, they do not enable us to ensure that we have become aware of all matters that would be identified in a reasonable assurance engagement with the purpose of expressing an opinion. If we had applied procedures of reasonable assurance, we could have identified other issues and possible misstatements that may exist in the information contained in the ALGAR TELECOM`s 2021 Integrated Report. Accordingly, we do not express an opinion on this information.
Non-financial data are subject to more inherent limitations than financial data, given the nature and diversity of the methods used to determine, calculate or estimate such data. Qualitative interpretations of materiality, relevance and accuracy are subject to individual assumptions and judgments. ALGAR TELECOM's inventory of greenhouse gases emissions was subject to the independent external verification carried out by Totum Institute and the data contained in the GHG Inventory were not reviewed by our auditors. If any adjustments are identified after the conclusion of our work, ALGAR TELECOM`s 2021 Integrated Report and this limited assurance report will be both republished.
Additionally, we did not carry out any work related to future projections and goals, however, the previous periods (2019 and 2020) information were reviewed and the recommendations were implemented in the 2021 Integrated Report.
Our work had the purpose of applying limited assurance procedures on the sustainability information disclosed in ALGAR TELECOM's 2021 Integrated Report and did not include the evaluation of the adequacy of its policies, practices and sustainability performance.
Conclusion
Based on the performed procedures, described in this report, nothing has come to our attention that leads us to believe that the information contained in ALGAR TELECOM`s 2021 Integrated Report has not been compiled, in all relevant matters, in accordance to the guidelines of the Global Reporting Initiative – GRI, Standards version, Essential option.
São Paulo, 20th of June 2022
RUSSELL BEDFORD GM
AUDITORES INDEPENDENTES
S/S2 CRC RS 5.460/O-0 “T” SP
Roger Maciel de Oliveira
Accountant 1 CRC RS 71.505/O-3 “T” SP
Partner Responsible Technician
