Skip to content

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

Orchid Retail's sustainability report includes the statement that 'we aim to reach net zero by 2040'. The assurance practitioner is performing a limited assurance engagement under ISSA 5000. Management wishes the forward-looking target to be covered by the conclusion without any further consideration. What should the practitioner do?

The practitioner should determine whether the target is part of the in-scope subject matter information and, if so, evaluate its preparation and presentation against the criteria. The conclusion does not guarantee the target will be achieved, and the information is neither automatically included nor automatically excluded.

  1. ATreat the target as covered automatically and conclude on whether it will be achieved
  2. BExclude it because forward-looking information can never be subject to assurance
  3. CDetermine whether the target forms part of the subject matter information within the engagement scope and, if so, evaluate whether it is properly prepared and presented in accordance with the criteria, without giving assurance that it will be achievedCorrect
  4. DDelete the target from the report, as practitioners may not allow aspirational statements

Explanation

The practitioner must consider whether the information is within the scope and assess it against the applicable criteria, such as the basis of preparation and assumptions. Assurance concerns the preparation and presentation of the target, not a guarantee of future outcomes. Blanket exclusion or automatic inclusion are both inappropriate.

Did you get it right without looking?

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

Practise Developments in sustainability assuranceFree diagnostic mock

More Developments in sustainability assurance questions