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ACCA Strategic Professional · Advanced Audit and Assurance (International) · Reporting on other assignments

Kestrel LLP is asked to report on a client's greenhouse gas statement. The engagement partner proposes a limited assurance engagement rather than reasonable assurance. Which statement correctly describes the difference in how the conclusion is expressed under ISAE 3000 (Revised)?

Under ISAE 3000, limited assurance is expressed in negative form, stating that nothing has come to the practitioner's attention indicating material misstatement, while reasonable assurance is expressed positively as an opinion. The reverse and the other options are incorrect, since limited assurance still gives a conclusion.

  1. ALimited assurance is expressed positively, and reasonable assurance is expressed negatively
  2. BBoth levels are expressed as a positive opinion, differing only in the fee charged
  3. CLimited assurance is expressed negatively, such as nothing has come to attention indicating material misstatement, whereas reasonable assurance is expressed positivelyCorrect
  4. DLimited assurance gives no conclusion, only a description of procedures performed

Explanation

Reasonable assurance gives a positive-form conclusion, such as in our opinion the information is fairly stated. Limited assurance uses a negative form, such as nothing has come to our attention that causes us to believe the information is materially misstated. Option A reverses this.

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