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CS Professional · Environmental, Social and Governance (ESG) - Principles and Practice · Sustainability Audit, ESG Rating and Emerging Mandates from Government and Regulators

Orion Pharma Ltd, a company within the BRSR Core assurance net, engages an assurance provider. The CFO suggests the provider only perform limited assurance by reviewing management representations, since the data is non-financial. The company secretary objects. Which view is correct under SEBI's BRSR Core framework?

The company secretary is right. SEBI's BRSR Core framework requires reasonable assurance, which is a higher level than limited assurance and demands more rigorous evidence. A board decision cannot lower this standard for covered entities, and assurance is not optional for them, so relying on management representations alone would be non-compliant.

  1. AThe CS is right; BRSR Core requires reasonable assurance, a higher level than limited assuranceCorrect
  2. BThe CFO is right; limited assurance is the stipulated level
  3. CNeither; assurance is optional for non-financial data
  4. DThe CFO is right provided the board approves the approach

Explanation

SEBI's framework requires reasonable assurance on BRSR Core indicators for the entities covered, which involves a more rigorous evidence-gathering standard than limited assurance. Board approval cannot lower the mandated level. Assurance is not optional for covered entities, so the CFO's approach is non-compliant.

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