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

Bright Retail's sustainability report includes climate disclosures prepared under IFRS S2. The assurance engagement partner is assessing whether the criteria are suitable. Which characteristic would most strongly indicate that the criteria are NOT suitable for the engagement?

Criteria that management sets in a private internal document, not shared with users and changeable at will, are unsuitable. Suitable criteria must be relevant, complete, reliable, neutral, understandable and available to intended users, so that results can be measured and evaluated consistently.

  1. AThe criteria are available to intended users and are relevant to their decision-making
  2. BThe criteria allow results to be consistently measured and evaluated by different practitioners
  3. CThe criteria are developed by a recognised standard-setter following due process
  4. DThe criteria are set entirely by management in an internal document that is not shared with users and can be changed at willCorrect

Explanation

Suitable criteria are relevant, complete, reliable, neutral and understandable, and available to intended users. Criteria that management defines privately and may alter at will lack availability, reliability and neutrality. The other options describe attributes of suitable criteria.

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