Skip to content

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

Verdant plc asks an assurance firm to report on its published sustainability report. The engagement partner explains that the firm will express a conclusion on whether the information is free from material misstatement. Under ISSA 5000 and ISAE 3000 (Revised), which assurance level allows the practitioner to give a positive-form opinion, for example that the report is prepared in all material respects in accordance with the criteria?

Reasonable assurance allows a positive-form opinion, because engagement risk is reduced to an acceptably low level. Limited assurance produces only a negative-form conclusion, while agreed-upon procedures and compilations provide no assurance conclusion at all.

  1. ALimited assurance, because it reduces risk to a level acceptable in the circumstances
  2. BReasonable assurance, because engagement risk is reduced to an acceptably low levelCorrect
  3. CAgreed-upon procedures, because findings are reported without a conclusion
  4. DCompilation, because management's information is organised without a conclusion

Explanation

Reasonable assurance reduces engagement risk to an acceptably low level and supports a positive-form conclusion. Limited assurance gives a negative-form conclusion (nothing has come to attention). Agreed-upon procedures and compilation are not assurance engagements and give no conclusion on the information.

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