Skip to content

ACCA Strategic Professional · Advanced Audit and Assurance (International) · The assurance of sustainability

Tamar Logistics wants assurance on its climate-related disclosures prepared under IFRS S2. The board asks the assurance partner how the conclusion in a limited assurance report differs from that in a reasonable assurance report. Which statement is correct?

Limited assurance is typically worded negatively, stating that nothing has come to the practitioner's attention suggesting material misstatement, while reasonable assurance is expressed as a positive opinion. Reasonable assurance is high but not absolute, and limited assurance is a lower level, not simply the same level with fewer procedures.

  1. ALimited assurance is expressed in a negative form, stating that nothing has come to the practitioner's attention indicating material misstatement, whereas reasonable assurance is expressed positivelyCorrect
  2. BLimited assurance gives the same level of assurance but uses fewer procedures
  3. CReasonable assurance gives absolute assurance that no misstatement exists
  4. DLimited assurance conclusions are always qualified

Explanation

Reasonable assurance is a high but not absolute level and is expressed positively as an opinion. Limited assurance is a meaningful but lower level, usually expressed negatively. The levels differ in the assurance obtained, not only in procedures, and neither gives absolute assurance or is inherently qualified.

Did you get it right without looking?

One question tells you little. A timed set on The assurance of sustainability shows your real accuracy, how long you take and where you lose marks.

Practise The assurance of sustainabilityFree diagnostic mock

More The assurance of sustainability questions