ACCA Strategic Professional · Advanced Audit and Assurance (International) · Other current issues
Halden plc issues a sustainability report with limited assurance sought from its auditor. Which statement best describes a key difference between limited and reasonable assurance under ISAE 3000 (Revised)?
Limited assurance provides a lower, but still meaningful, level of assurance than reasonable assurance, and the conclusion is stated negatively, such as nothing has come to the practitioner's attention. Reasonable assurance is high but not absolute, and both can apply to non-financial information.
- ALimited assurance gives a lower level of assurance, with the conclusion expressed negatively, for example that nothing has come to the auditor's attentionCorrect
- BLimited assurance involves the same procedures as reasonable assurance but with a smaller sample only
- CReasonable assurance is absolute assurance that the report is free from misstatement
- DLimited assurance cannot be provided on non-financial information
Explanation
Under ISAE 3000 (Revised), reasonable assurance gives a positive form of conclusion, while limited assurance gives a meaningful but lower level of assurance, with the conclusion in a negative form. The nature, timing and extent of procedures are reduced in limited assurance. Neither level is absolute assurance, and non-financial information can be assured.
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