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ACCA Applied Knowledge · Business and Technology · Governance in business organisations

Which statement about independent assurance of a company's sustainability report is most accurate?

Independent assurance increases the credibility of sustainability information for users, and in many places it is still voluntary. It cannot guarantee that the report is entirely free from error, because assurance provides only limited or reasonable confidence, and it is not universally compulsory.

  1. AIt is always compulsory for every company under international accounting standards
  2. BIt increases the credibility of the reported information for users, though it is often voluntaryCorrect
  3. CIt guarantees that all environmental information is free from any error

Explanation

Independent assurance gives users more confidence in non-financial disclosures and is often voluntary, though some jurisdictions now require it. It does not give an absolute guarantee of freedom from error, since assurance provides limited or reasonable, not absolute, confidence.

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