ACCA Strategic Professional · Advanced Audit and Assurance (International) · Developments in sustainability assurance
Brightwave plc's board wants assurance on its sustainability report, but no recognised criteria exist for several of its self-developed social metrics, and management has no documented process for collecting the data. Which is the most relevant concern for the practitioner when deciding whether to accept the engagement?
The practitioner should consider whether the subject matter is appropriate and suitable criteria exist to measure it. Without suitable criteria, such as for self-developed metrics with no documented data process, consistent evaluation is not possible and the assurance engagement may not be accepted.
- AWhether the engagement will earn a higher fee than the financial audit
- BWhether the subject matter is identifiable and suitable criteria are available to evaluate itCorrect
- CWhether the report is longer than the annual report
- DWhether the practitioner can issue a reasonable assurance opinion on the financial statements
Explanation
Under ISAE 3000 (Revised), preconditions for an assurance engagement include an appropriate subject matter and suitable criteria. Without suitable criteria, the practitioner cannot evaluate the information consistently. Fees, report length and the financial statement opinion are not the precondition.
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