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CA Final · Advanced Auditing, Assurance and Professional Ethics · Sustainable Development Goals (SDG) & Environment, Social and Governance (ESG) Assurance

Sundaram & Co., Chartered Accountants, are engaged to provide a limited assurance report on the BRSR Core indicators of Kaveri Textiles Ltd., a listed company. During planning, the engagement partner wants to decide the nature of the conclusion to be expressed. Which conclusion form is appropriate for a limited assurance engagement?

A limited assurance engagement results in a negative-form conclusion, stating that nothing has come to the practitioner's attention suggesting the subject matter is materially misstated. Positive-form opinions are for reasonable assurance, and no assurance engagement can give absolute guarantees or exactness.

  1. AA positive-form opinion stating that the indicators are free from material misstatement
  2. BA negative-form conclusion stating that nothing has come to attention indicating the indicators are materially misstatedCorrect
  3. CA guarantee that no non-compliance with environmental law exists
  4. DA statement that the indicators are accurate to the last rupee

Explanation

In a limited assurance engagement, the practitioner gathers less evidence than for reasonable assurance and expresses the conclusion in negative form. A positive-form opinion belongs to reasonable assurance. Absolute guarantees or exact accuracy are not possible in any assurance engagement.

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