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

Kestrel & Co, a firm of accountants, is asked by the board of Lumen Foods to provide an opinion on whether the company's sustainability report complies with stated criteria. The engagement will give the board's lenders confidence in the report. Which party in the assurance engagement is the 'intended user' under the IAASB Assurance Framework?

The lenders are the intended users. An assurance engagement involves a practitioner, a responsible party and intended users. The lenders will rely on the report, while the board is the responsible party and Kestrel & Co is the practitioner.

  1. AThe lenders who will rely on the reportCorrect
  2. BKestrel & Co, the practitioner
  3. CThe board of Lumen Foods, who prepared the report
  4. DThe regulator that issued the reporting criteria

Explanation

The three-party relationship comprises the practitioner, the responsible party and the intended users. The lenders are the persons for whom the report is prepared and who will rely on it, so they are the intended users. The board is the responsible party, and Kestrel is the practitioner.

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