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ACCA Strategic Professional · Advanced Audit and Assurance (International) · The assurance of sustainability

During a limited assurance engagement on Zephyr plc's water-usage data, Marlow & Co finds that the figures for one site come from a supplier's third-party meter-reading service. Management says it cannot obtain access to the supplier's records. Which procedure is most appropriate for the engagement team in obtaining evidence?

The team should evaluate the reliability of the service provider's information and perform alternative procedures, such as agreeing to supplier invoices and performing analytical comparisons. External evidence is not automatically reliable, and silently excluding the site or withdrawing at once would be inappropriate before alternatives are considered.

  1. AEvaluate the reliability of the information from the service provider and perform alternative procedures, such as comparing it with invoices and analytical trendsCorrect
  2. BAccept the supplier's figures without further work because they are external evidence
  3. CExclude the site silently from the scope while keeping the conclusion unmodified
  4. DWithdraw immediately without considering any alternative procedures

Explanation

Evidence from outside sources still needs its reliability evaluated. Where direct access is not possible, alternative procedures such as corroborating with invoices and analytical comparisons may provide sufficient appropriate evidence. Silently excluding the site would mislead users, and immediate withdrawal is premature.

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