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

CA Tanvi is the assurance practitioner for the sustainability report of Himalaya Hydro Ltd. Management has described its climate-related targets as 'on track' but the report includes no basis for the statement and internal board papers show the targets are likely to be missed. Which action is most appropriate for Tanvi?

Tanvi should treat the 'on track' claim as other information materially inconsistent with what she knows from board papers, discuss it with management, and if it stays uncorrected consider the implications for her conclusion and report. She must not edit the report herself.

  1. AIgnore the statement because targets are forward-looking and outside assurance scope
  2. BTreat it as other information inconsistent with her knowledge, discuss with management, and if uncorrected consider the effect on her report and her conclusionCorrect
  3. CRemove the statement herself from the report
  4. DResign immediately without communicating with those charged with governance

Explanation

Statements in documents containing assured information must be read for material inconsistency with the practitioner's knowledge. She should raise it with management, and if it remains uncorrected, consider modifying the report or other actions. She cannot edit management's report, and resignation without communication is not the first step.

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