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CA Final · Advanced Auditing, Assurance and Professional Ethics · Sustainable Development Goals (SDG) & Environment, Social and Governance (ESG) Assurance

CA Meera is engaged to give limited assurance on the BRSR Core indicators of Arvind Steels Ltd. Management wants her report to state that, in her opinion, the water consumption intensity figure 'is fairly stated in all material respects'. Which is the correct approach for Meera?

Meera should express a negative-form conclusion, saying nothing came to her attention indicating the water intensity figure is materially misstated. Limited assurance involves fewer procedures, so a positive fairly-stated opinion is reserved for reasonable assurance and cannot be given merely because management insists.

  1. AAgree, because limited assurance permits a positive opinion if management insists
  2. BExpress the conclusion in negative form, stating that nothing has come to her attention indicating the figure is materially misstatedCorrect
  3. CRefuse any report, as water data cannot be assured by a chartered accountant
  4. DIssue a disclaimer, because limited assurance engagements require no conclusion

Explanation

In a limited assurance engagement the practitioner gives a negative-form conclusion based on less extensive procedures. A positive 'fairly stated' opinion belongs to reasonable assurance, and the level cannot be raised just because management asks. A disclaimer is wrong because a conclusion is still required.

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