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ACCA Strategic Professional · Strategic Business Leader · Stakeholder analysis and organisational social responsibility

Danube Textiles has asked an independent firm to provide limited assurance on selected data in its sustainability report, such as carbon emissions and workforce injury rates. A director asks what limited assurance means for stakeholders. Which statement is correct?

Limited assurance gives a negative-form conclusion: nothing has come to the assurer's attention suggesting the data is materially misstated. It involves less work than reasonable assurance and offers a moderate, not absolute, level of comfort, so it is not a guarantee.

  1. AThe conclusion is expressed negatively, stating that nothing has come to the assurer's attention indicating the data is materially misstatedCorrect
  2. BThe assurer gives a positive opinion that the data is free from all misstatement
  3. CThe assurer certifies that the company's strategy is sustainable
  4. DThe assurer guarantees that no fraud has occurred in the reporting period

Explanation

Limited assurance involves fewer procedures than reasonable assurance and results in a negatively worded conclusion. A positive opinion is associated with reasonable assurance, and neither level guarantees absence of misstatement or fraud, or validates strategy.

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