ACCA Strategic Professional · Advanced Audit and Assurance (International) · Developments in sustainability assurance
Harlow Assurance is planning a limited assurance engagement on the sustainability report of Vantor Group. The firm has strong financial audit staff but no one with experience of sustainability reporting frameworks or emissions data. Under ISQM 1 and ISSA 5000, what should the firm do first?
Harlow should assess at acceptance whether it has or can obtain the competence, capabilities and resources, including suitable experts, to perform the engagement. Quality management requires this before accepting. Disclosing a skills gap in the report or using management's specialist does not meet the requirement.
- ARely on the audit staff's general audit competence, since the procedures are similar
- BAssess whether it has, or can obtain, the competence and capabilities, including through experts, before accepting the engagementCorrect
- CAccept the engagement and disclose the skills gap in the assurance report
- DAccept the engagement and ask Vantor's management to provide a specialist to perform the procedures
Explanation
Quality management requires the firm to accept engagements only where it has the competence, capabilities and resources to perform them. This should be assessed at acceptance, possibly using experts. Disclosing a gap in the report is not a substitute, and management's specialist would not be independent evidence-gathering by the practitioner.
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