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

During a limited assurance engagement on Orsin Co's sustainability report, the practitioner finds that a metric for water usage is based on estimates from one site and no records exist to support them. The matter is material but not pervasive, and the rest of the report is well supported. What is the most appropriate effect on the conclusion?

The practitioner should qualify the conclusion, using an 'except for' form, because the lack of evidence on the water metric is material but not pervasive. Limited assurance still requires sufficient appropriate evidence, and an adverse or disclaimer conclusion is reserved for pervasive effects.

  1. AIssue an unmodified conclusion because limited assurance does not require supporting records.
  2. BIssue a qualified conclusion (except for) or the equivalent modification, as the limitation on evidence is material but not pervasive.Correct
  3. CIssue an adverse conclusion on the entire report.
  4. DWithdraw all references to the metric from the report without telling management.

Explanation

If the practitioner cannot obtain sufficient appropriate evidence on a material but not pervasive matter, the conclusion is modified in a qualified, 'except for' form. Limited assurance still needs sufficient evidence for a meaningful level of assurance. An adverse conclusion or disclaimer would apply only if effects were pervasive.

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