Skip to content

ACCA Strategic Professional · Advanced Audit and Assurance (International) · Audit-related and assurance services

Karolis Foods asks its auditor for assurance on the carbon emissions data in its ESG report. Management wants a conclusion expressed negatively, such as 'nothing has come to our attention', and wants lower cost and less evidence gathering. Which engagement type and feature fits this request?

A limited assurance engagement fits, because it needs less extensive evidence than reasonable assurance and the conclusion is expressed in negative form. Reasonable assurance requires positive-form opinions, while agreed-upon procedures and compilations provide no assurance conclusion at all.

  1. AA limited assurance engagement, where evidence gathering is less extensive than reasonable assurance and the conclusion is expressed in a negative formCorrect
  2. BA reasonable assurance engagement, where the conclusion is expressed negatively but evidence is as extensive as in an audit
  3. CAn agreed-upon procedures engagement, where the practitioner gives a negative-form assurance conclusion
  4. DA compilation engagement, where the practitioner gives limited assurance on the emissions data

Explanation

Limited assurance involves fewer procedures, mainly enquiry and analytical procedures, and a negative-form conclusion. Reasonable assurance gives a positive opinion and needs more extensive evidence. Agreed-upon procedures report factual findings without an assurance conclusion, and compilation gives no assurance.

Did you get it right without looking?

One question tells you little. A timed set on Audit-related and assurance services shows your real accuracy, how long you take and where you lose marks.

Practise Audit-related and assurance servicesFree diagnostic mock

More Audit-related and assurance services questions