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

Marlow & Co is asked by a client, Tidewater Ltd, to provide assurance on its sustainability report. The client wants a conclusion worded 'nothing has come to our attention that causes us to believe the report is materially misstated'. Which engagement level does this wording represent?

The wording represents limited assurance. A negative-form conclusion saying nothing has come to the practitioner's attention indicates a moderate level of assurance, obtained through fewer procedures than a reasonable assurance engagement, which would instead give a positive opinion.

  1. AReasonable assurance, expressed as a positive opinion
  2. BLimited assurance, expressed in a negative form of conclusionCorrect
  3. CNo assurance, as an agreed-upon procedures report
  4. DAbsolute assurance, as all emissions data are verified

Explanation

Limited assurance engagements, such as those under ISAE 3000 (Revised), give a conclusion in negative form, based on fewer procedures than reasonable assurance. Reasonable assurance gives a positive opinion. Agreed-upon procedures give findings, not a conclusion, and absolute assurance is not attainable.

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