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ACCA Strategic Professional · Advanced Audit and Assurance (International) · The assurance of sustainability

Meridian plc's practitioner is performing limited assurance on a sustainability report and finds, after the engagement is under way, that management wants to restrict the scope so that the practitioner cannot access supplier contracts supporting a key climate target claim. The practitioner cannot obtain alternative evidence. The restriction relates to a matter that is material and pervasive. What is the appropriate conclusion?

The practitioner should disclaim a conclusion, or withdraw where possible. A scope limitation that prevents sufficient appropriate evidence on a material and pervasive matter cannot support an unmodified or qualified conclusion, and an adverse conclusion applies to identified misstatement rather than missing evidence.

  1. AAn unmodified conclusion, because limited assurance needs less evidence
  2. BA qualified conclusion, because only one claim is affected
  3. CA disclaimer of conclusion, or withdrawal where possible, because the limitation is material and pervasiveCorrect
  4. DAn adverse conclusion, because the information is probably misstated

Explanation

When a scope limitation prevents sufficient appropriate evidence and the possible effects are material and pervasive, the practitioner disclaims a conclusion or withdraws if possible. A qualified conclusion suits a material but not pervasive effect. An adverse conclusion requires identified misstatement, not merely lack of evidence. Limited assurance still requires meaningful evidence.

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