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

Brannock Ltd's assurance provider, Eldra & Co, is already the financial statement auditor and will also issue an ISSA 5000 report on sustainability information. The partner proposes to describe the work in one combined report without distinguishing the engagements. Which response best reflects the requirements of ISSA 5000 and good practice?

The firm should issue an assurance report that clearly identifies the sustainability information, the criteria, the level of assurance and responsibilities, and does not imply the financial statement audit opinion covers it. Conclusions must reflect evidence actually obtained, and omitting criteria or overstating assurance would be non-compliant.

  1. ACombine them, because the ISAs and ISSA 5000 require a single opinion covering both.
  2. BIssue a separate assurance report where the engagement is distinct, clearly identifying the sustainability information, criteria, level of assurance and the practitioner's responsibilities, and avoid implying the audit opinion covers it.Correct
  3. COmit the criteria from the report since users can find them in the annual report.
  4. DState a reasonable assurance conclusion on all information regardless of the evidence obtained to align with the audit.

Explanation

ISSA 5000 expects the report to identify the information assured, the applicable criteria, the level of assurance and responsibilities, and the conclusion must reflect the evidence obtained. A financial statement audit opinion does not extend to sustainability information unless separately engaged, and criteria must be identified. Using one level for all information regardless of evidence is wrong.

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