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

Kestrel & Co, an audit firm, is engaged to provide limited assurance on the sustainability report of Dalton Energy plc. The engagement partner wants to rely on a firm-wide standard for quality management. Which standard sets out the firm's responsibilities for its system of quality management for assurance engagements other than audits and reviews of historical financial information?

ISQM 1 is correct because it governs a firm's system of quality management across audits, reviews, other assurance and related services engagements, including sustainability assurance. ISA 220 (Revised) covers only financial statement audits at engagement level, and ISAE 3410 addresses greenhouse gas subject matter rather than firm-wide quality management.

  1. AISQM 1 Quality Management for Firms that Perform Audits or Reviews of Financial Statements, or Other Assurance or Related Services EngagementsCorrect
  2. BISA 220 (Revised) Quality Management for an Audit of Financial Statements
  3. CISAE 3410 Assurance Engagements on Greenhouse Gas Statements
  4. DISA 315 (Revised 2019) Identifying and Assessing the Risks of Material Misstatement

Explanation

ISQM 1 applies at firm level to firms performing audits, reviews, other assurance and related services engagements, so it covers sustainability assurance. ISA 220 (Revised) is limited to audits of financial statements, so it is not the firm-level standard here. ISAE 3410 deals with greenhouse gas engagements, not firm-level quality management.

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