CA Final · Advanced Auditing, Assurance and Professional Ethics · Sustainable Development Goals (SDG) & Environment, Social and Governance (ESG) Assurance

Anvay Foods Ltd, a listed company, reports in its BRSR that it has reduced water consumption intensity by 18%. CA Tara, performing a limited assurance engagement, finds the baseline year figure was restated downward by management during the year, with no disclosure of the restatement and no supporting basis. Without the restatement, the reduction would be about 4%. What is the most appropriate course of action?

Tara should treat the undisclosed, unsupported baseline restatement as a possible material misstatement, request evidence and proper disclosure, and modify her conclusion if management does not correct it. She cannot amend the report herself, and arithmetic accuracy does not satisfy suitable reporting criteria.

1. AAccept the claim since the reported figure is arithmetically correct
2. BTreat the undisclosed, unsupported restatement as a potentially material misstatement, request evidence and disclosure, and if unresolved modify her conclusionCorrect
3. CRemove the claim herself from the report and issue an unmodified conclusion
4. DReport the matter only to the company's marketing team