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

Halden plc's sustainability report includes greenhouse gas emissions, which are quantitative, and statements about its transition plan, which are forward-looking. Auditor Priya is planning a reasonable assurance engagement under ISSA 5000. Which approach to the forward-looking transition plan disclosures is most consistent with the standard?

The practitioner should obtain evidence on the basis of preparation, the assumptions used and their reasonableness, accepting that future outcomes are uncertain. Forward-looking information is not automatically excluded, and management representations alone are not sufficient appropriate evidence for a reasonable assurance conclusion.

  1. ATreat them as outside the scope of any assurance engagement because they relate to the future.
  2. BObtain evidence on the basis, assumptions and reasonableness of the information, recognising that future outcomes are inherently uncertain and cannot be guaranteed.Correct
  3. CConclude that the plan is correct only if the targets are actually achieved in the following year.
  4. DRely solely on management's representation that the targets are achievable.

Explanation

Forward-looking information can be within scope. The practitioner evaluates the basis of preparation, assumptions and supporting evidence, while accepting inherent uncertainty. Waiting for outcomes is not an assurance procedure, and management representations alone are insufficient evidence.

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