Skip to content

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

Zenara plc asks an assurance provider to report on its published sustainability report. The engagement will be performed under ISAE 3000 (Revised). The directors ask for the same level of assurance as in a financial statement audit, expressed as a positive opinion. Which statement about the level of assurance is correct?

Reasonable assurance is a high but not absolute level of assurance, and the practitioner expresses a positive conclusion. Limited assurance is lower and is worded negatively. Neither level provides absolute certainty, because inherent limitations such as sampling and judgement always remain in the evidence-gathering process.

  1. AReasonable assurance is a high but not absolute level of assurance, and the conclusion is expressed positivelyCorrect
  2. BLimited assurance is a high level of assurance and is expressed as a positive opinion
  3. CReasonable assurance gives absolute certainty that the report contains no misstatement
  4. DLimited assurance requires the same evidence-gathering as reasonable assurance but a shorter report

Explanation

Under ISAE 3000 (Revised), reasonable assurance is a high but not absolute level, so the risk of material misstatement is reduced to an acceptably low level and the conclusion is positive. Limited assurance is lower and is expressed negatively. Absolute assurance is never possible, so the third option is wrong.

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