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

Marlow & Co, a firm of accountants, is engaged by a retailer to give an opinion on whether the retailer's published sustainability metrics were prepared in accordance with stated criteria. Which of the following is a necessary element of an assurance engagement under the ISAE 3000 (Revised) framework?

Suitable criteria are a necessary element of an assurance engagement under ISAE 3000. The practitioner needs benchmarks to evaluate or measure the subject matter. The practitioner does not prepare the information, is not limited to negative opinions and cannot give absolute guarantees.

  1. ASuitable criteria against which the underlying subject matter is evaluatedCorrect
  2. BA requirement that the practitioner prepares the subject matter information
  3. CAn opinion expressed only in negative form
  4. DA guarantee from the practitioner that no misstatement exists

Explanation

An assurance engagement has five elements, including a three-party relationship, an appropriate underlying subject matter, suitable criteria, sufficient appropriate evidence and a written report. Suitable criteria are essential for evaluating or measuring the subject matter. Preparing the information is the responsible party's job, and assurance is never a guarantee.

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