CA Final · Advanced Auditing, Assurance and Professional Ethics · Sustainable Development Goals (SDG) & Environment, Social and Governance (ESG) Assurance

In a reasonable assurance report on selected sustainability indicators of Himalaya Cements Ltd, CA Bose finds that management has not disclosed the boundary used for Scope 1 emissions, though the indicator is otherwise correctly computed. Which is the most appropriate approach to the report?

The practitioner should assess whether the missing boundary disclosure makes the information misleading to users, and modify the conclusion if it does and management will not correct it. Correct arithmetic alone does not justify an unmodified conclusion, and a disclaimer applies to evidence limitations, not disclosure deficiencies.

1. AIssue an unmodified conclusion, since the numbers are correctly computed
2. BIssue a disclaimer of conclusion, since any boundary issue prevents all work
3. CConsider whether the missing boundary disclosure makes the subject matter information misleading to users, and modify the conclusion if it does and management does not correct itCorrect
4. DRemove the indicator from the report without informing management