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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 performing a limited assurance engagement on the GHG emissions (Scope 1 and 2) disclosed by Kaveri Cements Ltd. Management has asked for a report with a positive-form opinion stating that emissions 'are fairly stated'. Which is the correct response?

She should decline the positive-form opinion. A limited assurance engagement yields a negative-form conclusion, saying nothing has come to her attention suggesting the emissions information is materially misstated. A positive opinion is reserved for reasonable assurance, which needs more extensive procedures.

  1. AAgree, because a positive-form opinion is required whenever numerical data are reported
  2. BAgree, provided management signs a representation letter accepting the opinion
  3. CDecline, because a limited assurance conclusion is expressed in negative form, stating that nothing has come to attention indicating material misstatementCorrect
  4. DDecline, because GHG data can only be covered by a reasonable assurance engagement

Explanation

In limited assurance, procedures are fewer than in reasonable assurance, so the conclusion is in negative form. A representation letter cannot change the level of assurance. GHG statements can be subject to either level, so the last option is wrong.

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