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ACCA Strategic Professional · Advanced Audit and Assurance (International) · Reporting on other assignments

During a reasonable assurance engagement under ISAE 3000 (Revised) on Halden Co's renewable energy output statement, the practitioner discovers that a key conclusion depends on a plant's meter data, which the responsible party refuses to release. The practitioner concludes the possible effects could be material and pervasive. What is the appropriate form of conclusion?

A disclaimer of conclusion, or withdrawal if possible, is appropriate. The practitioner cannot obtain sufficient appropriate evidence and the possible effects are material and pervasive. A qualified conclusion suits non-pervasive effects, an adverse conclusion relates to identified misstatements, and emphasis of matter cannot remedy a scope limitation.

  1. AA disclaimer of conclusion, or withdrawal where possibleCorrect
  2. BA qualified conclusion, because only one area is affected
  3. CAn adverse conclusion, because the data was withheld
  4. DAn unmodified conclusion with an emphasis of matter paragraph

Explanation

An inability to obtain sufficient appropriate evidence whose possible effects are material and pervasive leads to a disclaimer of conclusion, or withdrawal where practicable. A qualified conclusion applies when effects are material but not pervasive. An adverse conclusion is for misstatements that are known, not for limitation of scope. Emphasis of matter cannot cure a scope limitation.

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