ACCA Strategic Professional · Advanced Audit and Assurance (International) · Reporting on other assignments
A practitioner issues a limited assurance report on Delmar Group's sustainability data. During the engagement, management refuses to give the practitioner access to supplier records supporting the water consumption figures, which are material but not pervasive to the report. What type of conclusion should the practitioner most likely express?
A qualified conclusion is appropriate. The refusal of access creates a scope limitation whose possible effects are material but not pervasive, so the practitioner reports except for that matter. A disclaimer would require pervasive effects, and an adverse conclusion relates to misstatement rather than lack of evidence.
- AA qualified conclusion, because of a limitation of scope that is material but not pervasiveCorrect
- BAn adverse conclusion, because the evidence is unavailable
- CA disclaimer of conclusion, because management has refused access
- DAn unmodified conclusion with an emphasis of matter paragraph
Explanation
When the practitioner cannot obtain sufficient appropriate evidence and the possible effects are material but not pervasive, a qualified conclusion is appropriate ('except for'). An adverse conclusion relates to misstatement, not scope limitation. A disclaimer applies where the effects are both material and pervasive. An unmodified conclusion with an emphasis paragraph would not address the missing evidence.
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