CA Final · Advanced Auditing, Assurance and Professional Ethics · Sustainable Development Goals (SDG) & Environment, Social and Governance (ESG) Assurance

While performing a limited assurance engagement on a steel company's sustainability report, CA Anil notes that the entity claims a 20% water-intensity reduction, yet the metering records for two plants are unavailable and the figure rests on management estimates. The claim is material. Anil has otherwise obtained sufficient evidence on all other indicators. What conclusion is appropriate?

A qualified conclusion is appropriate, stating the effect of the evidence limitation, because the missing metering records create a material but not pervasive limitation. Limited assurance still needs sufficient evidence; an adverse conclusion would suit known misstatement rather than unavailable evidence.

1. AUnmodified conclusion, because limited assurance needs only inquiry
2. BQualified conclusion (except for) stating the effect of the evidence limitation, if the possible effect is material but not pervasiveCorrect
3. CAdverse conclusion, because the figure may be misstated
4. DWithdraw automatically, since limited assurance cannot cover estimates