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

Karima & Co is engaged to report on the sustainability report of Delmar Energy. The engagement letter requests a conclusion on the entity's reported Scope 1 and Scope 2 emissions only. The directors ask the engagement partner which standard should be applied to this assurance engagement on non-financial information. Which is the most appropriate response?

The firm should apply ISSA 5000 or ISAE 3000 (Revised), because this is an assurance engagement on sustainability information. The ISAs apply to audits of historical financial statements, and ISRS 4400 covers agreed-upon procedures where no assurance conclusion is given, which is not the case here.

  1. AISA 700 (Revised), as the report is part of the annual report
  2. BISSA 5000 or ISAE 3000 (Revised), as the engagement is an assurance engagement on sustainability information rather than a historical financial statement auditCorrect
  3. CISRS 4400, as the engagement involves only agreed-upon procedures
  4. DISA 240, as it deals with the auditor's responsibilities relating to fraud in all assurance engagements

Explanation

Assurance on sustainability information is performed under ISSA 5000 (or ISAE 3000 (Revised) where applicable), not under the ISAs, which apply to audits of historical financial information. ISRS 4400 applies to agreed-upon procedures, where no assurance conclusion is given, but here a conclusion is requested.

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