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

Brightwater Ltd has engaged an accountant to provide limited assurance on its greenhouse gas emissions statement. During the engagement, the accountant obtains evidence mainly through enquiries and analytical procedures. Which statement about the conclusion the accountant should express is correct?

In a limited assurance engagement the practitioner expresses a conclusion in negative form, stating that nothing has come to their attention to indicate material misstatement. A positive opinion belongs to reasonable assurance, and no assurance engagement certifies precise accuracy.

  1. AA positive opinion that the statement is free from material misstatement
  2. BA negative-form conclusion stating that nothing has come to the accountant's attention indicating the statement is materially misstatedCorrect
  3. CNo conclusion, since limited assurance engagements only produce a description of work done
  4. DA conclusion that the statement is accurate to the nearest tonne

Explanation

In a limited assurance engagement the risk of material misstatement is reduced to a level acceptable in the circumstances but higher than for reasonable assurance, so the conclusion is expressed in a negative form. A positive opinion is the reasonable assurance form. Assurance never certifies exact accuracy.

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