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

Oakline Retail uses data from several suppliers in its Scope 3 emissions disclosures. The practitioner, Marta, is performing a limited assurance engagement and finds that some supplier data are held by an external service provider whose records she cannot access. Management says the information is immaterial. Which response best complies with the engagement requirements?

Marta should judge whether the unsupported information is material and how pervasive the limitation is, then modify her conclusion, or disclaim it if pervasive, if evidence cannot be obtained. Management's assertion of immateriality and its representations do not replace sufficient appropriate evidence.

  1. AAccept management's representation and proceed, because representations are sufficient appropriate evidence for limited assurance
  2. BWithdraw from all engagements for the client, since access limitations always require resignation
  3. CEvaluate whether the information is material and whether the limitation is pervasive; if a material matter cannot be evidenced, modify the conclusion or consider disclaiming it, rather than relying only on representationsCorrect
  4. DRemove the Scope 3 disclosure from the report herself so that the limitation disappears

Explanation

Marta must obtain sufficient appropriate evidence; management representations alone do not replace it for material matters. If a scope limitation affects material information she modifies the conclusion, with a disclaimer where pervasive. She cannot unilaterally alter the entity's report, and withdrawal from all work is not required.

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