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ACCA Strategic Professional · Advanced Audit and Assurance (International) · The assurance of sustainability

Audit firm Brandt & Co is engaged to provide limited assurance on the sustainability disclosures of Kiln Energy, which are prepared under IFRS Sustainability Disclosure Standards. The engagement partner asks which international standard is the primary standard governing an assurance engagement on sustainability information that is not an audit of historical financial information. Which should be applied?

ISAE 3000 (Revised) applies, because it governs assurance engagements other than audits or reviews of historical financial information, which includes sustainability disclosures. ISA 700 relates to financial statement audits, ISRE 2400 to reviews of financial statements, and ISRS 4400 to agreed-upon procedures that provide no assurance.

  1. AISAE 3000 (Revised), Assurance Engagements Other than Audits or Reviews of Historical Financial InformationCorrect
  2. BISA 700 (Revised), Forming an Opinion and Reporting on Financial Statements
  3. CISRE 2400, Engagements to Review Historical Financial Statements
  4. DISRS 4400, Agreed-Upon Procedures Engagements

Explanation

ISAE 3000 (Revised) is the umbrella standard for assurance engagements other than audits or reviews of historical financial information, and covers sustainability assurance (alongside ISSA 5000 as the dedicated standard). ISA 700 applies to financial statement audits. ISRE 2400 covers reviews of financial statements, and ISRS 4400 gives no assurance, only findings.

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