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

Halden Group asks its auditor to give reasonable assurance on its sustainability report. The report says emissions are measured using the GHG Protocol, but management cannot explain how the emissions factors were chosen and the methodology is not described. The practitioner finds the criteria are only partly suitable. What is the most appropriate response during acceptance and planning?

The practitioner should assess whether the criteria are suitable, meaning relevant, complete, reliable, neutral and understandable, and available to users. If the methodology remains undisclosed and unsuitable, the engagement should not be accepted as a reasonable assurance engagement unless management provides suitable, disclosed criteria.

  1. AProceed, because criteria suitability is assessed only at the reporting stage
  2. BAccept the engagement and note the unsuitability in an emphasis of matter paragraph
  3. CAccept only if the engagement is changed to agreed-upon procedures, regardless of the users' needs
  4. DAssess whether the criteria are suitable (relevant, complete, reliable, neutral, understandable) and, if they are not, discuss with management and decline the engagement unless suitable criteria are made available to usersCorrect

Explanation

ISAE 3000 requires the practitioner to determine that the criteria are suitable and available to intended users as a precondition for acceptance. Unclear or undisclosed methodology undermines this. Unsuitable criteria cannot be cured by an emphasis paragraph, and switching engagement type is not automatic.

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