Skip to content

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

Brightfield Co's sustainability report discloses scope 3 emissions estimated using supplier data and wide assumptions, creating high measurement uncertainty. The assurance practitioner is planning a reasonable assurance engagement. Which approach is consistent with ISSA 5000?

The practitioner should understand the entity and its environment and assess risks of material misstatement, including estimation uncertainty in scope 3 data, then design responses. Estimates can be assured, materiality relates to the sustainability information, and experts' work must still be evaluated.

  1. ATreat the uncertainty as irrelevant because materiality is set only on financial statement figures
  2. BObtain an understanding of the entity and its environment, and identify and assess risks of material misstatement, considering the estimation uncertaintyCorrect
  3. CRely solely on management's expert's report without evaluating the expert's competence
  4. DRefuse any engagement because estimates can never be assured

Explanation

ISSA 5000 requires the practitioner to understand the entity and assess risks of material misstatement, including those from estimates and measurement uncertainty, then design responses. Materiality is set for the sustainability information, not the financial statements. Experts' work must be evaluated, and estimates can be assured.

Did you get it right without looking?

One question tells you little. A timed set on The assurance of sustainability shows your real accuracy, how long you take and where you lose marks.

Practise The assurance of sustainabilityFree diagnostic mock

More The assurance of sustainability questions