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ACCA Strategic Professional · Advanced Audit and Assurance (International) · Developments in sustainability assurance

An assurance firm is staffing a limited assurance engagement on the sustainability report of Orion Retail. The engagement partner has strong financial audit experience but little knowledge of sustainability reporting frameworks and emissions measurement. Which action best satisfies the requirement for the engagement team to have appropriate competence and capabilities?

The firm should make sure the team collectively has or can access the needed sustainability expertise, while the engagement partner keeps overall responsibility for quality, direction and the conclusion. Responsibility cannot be handed to a specialist or management, and financial audit experience alone does not make the team competent.

  1. AEnsure the team collectively has, or has access to, the necessary sustainability expertise, with the partner remaining responsible for overall quality and directionCorrect
  2. BDelegate responsibility for the assurance conclusion to a sustainability specialist
  3. CProceed because financial audit experience is sufficient for any assurance subject matter
  4. DRely on management's sustainability team to explain the data and issue the conclusion jointly

Explanation

Competence may be achieved through team members or experts, but the engagement partner stays responsible for the engagement and the conclusion. Responsibility cannot be delegated to a specialist, and management cannot share in forming the conclusion without destroying independence. Financial audit experience alone does not cover sustainability subject matter.

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