Skip to content

ACCA Applied Knowledge · Business and Technology · Environmental and sustainability factors

Which of the following is the main reason that external assurance over a sustainability report is valuable?

External assurance is valuable because it increases stakeholder confidence in the reliability and credibility of the sustainability information reported. An independent party checks the data and claims, reducing the risk of misleading statements, but it neither guarantees targets are met nor replaces internal monitoring systems.

  1. AIt guarantees the company will achieve its environmental targets
  2. BIt increases stakeholder confidence in the reliability of the reported informationCorrect
  3. CIt removes the need for internal environmental monitoring systems

Explanation

Independent assurance gives users greater confidence that the data and claims are reliable and not misleading. It does not guarantee future targets will be met, and the company still needs internal systems to produce the data being assured.

Did you get it right without looking?

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

Practise Environmental and sustainability factorsFree diagnostic mock

More Environmental and sustainability factors questions