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 the greenhouse gas (GHG) emissions statement of Kaveri Cement Ltd, CA Rohan finds that the company's emission factors come from an internal spreadsheet prepared by a management expert, an environmental consultant engaged by the company. Rohan intends to rely on the consultant's work. Which action is most appropriate?

The practitioner should evaluate the management expert's competence, capabilities and objectivity, understand the work performed and assess whether it is appropriate as evidence. Reliance does not shift responsibility, so the report conclusion remains entirely the practitioner's own, and referring to the expert does not dilute that responsibility.

1. ARely on it fully because the consultant is engaged by the company and so is presumed competent
2. BEvaluate the consultant's competence, capabilities and objectivity, understand the work done, and evaluate the appropriateness of that work as evidence before relying on itCorrect
3. CRefer to the consultant's work in the assurance report to transfer responsibility to the consultant
4. DDisregard the spreadsheet and issue a disclaimer of conclusion since external experts' work is never usable