ACCA Strategic Professional · Advanced Audit and Assurance (International) · Specific assignments
Tamsin & Co is engaged to provide assurance on a sustainability report published by Verdan plc. The criteria used by management are a bespoke set of internally devised targets that are vague and not made available to readers. Which is the most significant issue for accepting the engagement under ISAE 3000 (Revised)?
The main issue is that the criteria are unsuitable. ISAE 3000 (Revised) makes suitable, available criteria a precondition for accepting an assurance engagement. Vague, unpublished internal targets are not relevant, reliable or understandable to users, so the practitioner should not accept without improvement.
- AThe criteria are not suitable, which is a precondition for an assurance engagementCorrect
- BThe report is not prepared under IFRS, so assurance cannot be given
- CLimited assurance cannot be given on sustainability information
- DThe engagement must be performed by the entity's statutory auditor
Explanation
ISAE 3000 (Revised) requires suitable criteria that are relevant, complete, reliable, neutral and understandable, and available to intended users. Vague, unpublished criteria fail this precondition. Sustainability information can be assured at limited or reasonable level and need not be under IFRS or by the statutory auditor.
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