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ACCA Strategic Professional · Advanced Audit and Assurance (International) · Audit-related and assurance services

Orlov Pharma wants an ISAE 3000 engagement on its report describing the design and operating effectiveness of controls over its sustainability data over a six-month period. The practitioner will test controls throughout the period and report a conclusion on them. Which statement best describes the appropriate form of report?

A reasonable assurance conclusion is appropriate, stating whether controls were suitably designed and operated effectively throughout the period against suitable criteria, supported by tests of controls. Limited assurance is not forced by period testing, agreed-upon procedures give no conclusion, and ISA 700 concerns financial statements.

  1. AA reasonable assurance conclusion on whether controls were suitably designed and operated effectively throughout the period, based on criteria and tests of controlsCorrect
  2. BA limited assurance conclusion, because tests of controls over a period cannot provide reasonable assurance
  3. CA statement of agreed-upon procedures, because controls cannot be evaluated against criteria
  4. DAn audit opinion under ISA 700 on the entity's financial statements

Explanation

Where the practitioner tests the design and operating effectiveness of controls over a period against suitable criteria, a reasonable assurance conclusion can be given, which is the nature of a controls report. The limited assurance claim is wrong because testing may be as extensive as required. Agreed-upon procedures give no conclusion. ISA 700 relates to financial statements, not controls over sustainability data.

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