ACCA Strategic Professional · Advanced Audit and Assurance (International) · Other current issues

Brightwell Ltd wants a report on its sustainability disclosures that gives a level of assurance expressed in a positive form, similar to an audit opinion. The practitioner is considering a limited assurance engagement instead because it is cheaper. Which statement about the difference between the two levels is correct?

Limited assurance involves less extensive procedures, mainly inquiry and analytical procedures, and gives a negative-form conclusion that nothing has come to the practitioner's attention indicating material misstatement. Reasonable assurance gives a positive-form opinion based on more extensive evidence gathering, so the wanted positive form needs reasonable assurance.

1. ALimited assurance gives a negative-form conclusion based on less extensive procedures, such as mainly inquiry and analytical proceduresCorrect
2. BLimited assurance requires the same evidence as reasonable assurance but a lower materiality
3. CReasonable assurance gives a negative-form conclusion, while limited assurance gives a positive-form opinion
4. DLimited assurance is not permitted for sustainability information under any IAASB standard