ACCA Strategic Professional · Advanced Audit and Assurance (International) · Developments in sustainability assurance

Calder Mining reports sustainability information under a framework that permits the entity to choose among several measurement methods for Scope 3 emissions estimates, including spend-based and supplier-specific data. Its auditor is performing a limited assurance engagement under ISSA 5000. The auditor discovers that the entity's chosen methodology differs from prior year, is not disclosed, and changes the reported total by an amount the auditor considers material. What is the most appropriate conclusion on the assurance report?

The auditor should issue a modified (qualified or adverse) conclusion. Although several methods are permitted, an undisclosed change in methodology with a material effect means the criteria are not applied consistently or transparently, so the information is materially misstated and cannot be reported on without modification.

1. AIssue an unmodified conclusion because the framework permits several methods
2. BIssue a qualified or adverse conclusion, as applicable, because the criteria are not applied consistently and the change and its effect are not adequately disclosedCorrect
3. CWithdraw from the engagement automatically, since methodology changes are never permitted
4. DInclude an emphasis of matter only, because estimation uncertainty is inherent in Scope 3 data