ACCA Strategic Professional · Strategic Business Leader · Reporting to stakeholders

Orlin Group wants its sustainability report to be credible to lenders. The board is choosing between obtaining no assurance, limited assurance and reasonable assurance from an independent practitioner over selected emissions data. Which statement about the implication of the choice is correct?

Reasonable assurance provides more comfort than limited assurance because it needs more extensive evidence gathering and results in a positively worded opinion. Limited assurance involves fewer procedures and a negative-form conclusion, and management's own review cannot substitute for independent assurance.

1. AReasonable assurance gives a higher level of comfort than limited assurance and involves more extensive evidence gathering, with a positively worded conclusionCorrect
2. BLimited assurance requires more evidence than reasonable assurance and gives a positive conclusion
3. CLimited and reasonable assurance differ only in the fee charged, not in the work performed
4. DAssurance by a practitioner is unnecessary because management's own review provides independent evidence