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

Orchard Retail plc's sustainability report states that 40% of its energy comes from renewable sources. During a limited assurance engagement, the practitioner finds that this figure includes purchased certificates not supported by contracts. What is the most appropriate next step?

The practitioner should obtain further evidence, evaluate whether the misstatement is material, and communicate it to management. If it is material and remains uncorrected, the conclusion should be modified. Limited assurance still requires sufficient appropriate evidence, and non-financial information is not exempt.

  1. AIgnore the matter because limited assurance does not require evidence
  2. BObtain further evidence and evaluate whether the misstatement is material, then communicate it to managementCorrect
  3. CImmediately withdraw from the engagement without discussing it with management
  4. DIssue a positive opinion since the figure is non-financial

Explanation

Even in limited assurance, the practitioner must obtain sufficient appropriate evidence to support the conclusion. Identified misstatements must be evaluated for materiality and communicated to management. This may lead to a modified conclusion if uncorrected. Withdrawal without discussion or ignoring the issue would be inappropriate.

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