ACCA Strategic Professional · Advanced Audit and Assurance (International) · The assurance of sustainability
Orlando Foods reports the percentage of its palm oil that is sourced from certified suppliers. The assurance practitioner, in a limited assurance engagement, wants evidence about the figure. Which procedure would provide the most reliable evidence?
The most reliable evidence is obtained from external sources and tested to underlying records: obtain certificates from the certification body and agree a sample of purchase volumes to invoices and delivery records. Management summaries, oral confirmations and published policies are weaker because they are internal or only show intent.
- AInspecting a management-prepared summary of supplier certifications
- BAsking the procurement director to confirm orally that the percentage is accurate
- CObtaining certificates directly from the certification body and agreeing a sample of purchase volumes to supplier invoices and delivery recordsCorrect
- DReading the supplier code of conduct published on the company website
Explanation
Evidence obtained from external sources and tested against underlying records is more reliable than internally generated or oral evidence. Agreeing certificates to the issuer and volumes to invoices addresses both the numerator and the denominator. A policy document shows intention, not actual sourcing.
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