Skip to content

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

Nimbus plc engages Tessa LLP to give limited assurance on its sustainability report. Tessa LLP is also the statutory auditor of Nimbus. During the engagement the practitioner finds that a key supplier's carbon data came from an expert, Greenscope, engaged by management. The practitioner proposes to rely on Greenscope's work. Which action is most appropriate under ISAE 3000 (Revised)?

The practitioner should evaluate the management's expert's competence, capabilities and objectivity and whether the work is adequate as evidence, while keeping sole responsibility for the conclusion. Blind reliance, blanket refusal of management's experts or joint signing would each be inconsistent with ISAE 3000 (Revised).

  1. AEvaluate Greenscope's competence, capabilities and objectivity and the adequacy of its work for the practitioner's purposes, while retaining sole responsibility for the conclusionCorrect
  2. BAccept the data without testing because an expert prepared it, and refer to Greenscope in the report to share responsibility
  3. CRefuse to use the data because management's expert is never acceptable
  4. DAsk Greenscope to sign the assurance report jointly as a co-practitioner

Explanation

ISAE 3000 (Revised) requires the practitioner to evaluate a management's expert's competence, capabilities and objectivity and the appropriateness of their work as evidence. Responsibility for the conclusion stays with the practitioner, so reference to the expert does not reduce it in an unmodified report. Blanket refusal or blind reliance is wrong.

Did you get it right without looking?

One question tells you little. A timed set on The assurance of sustainability shows your real accuracy, how long you take and where you lose marks.

Practise The assurance of sustainabilityFree diagnostic mock

More The assurance of sustainability questions