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

Zenith Textiles Ltd, a listed company, has published a voluntary sustainability report. Its management asks CA Rohan to provide assurance on the report's greenhouse gas (GHG) emissions data. Which standard issued by ICAI is the primary one governing such an assurance engagement on non-financial information, rather than SA 700 on financial statements?

SAE 3410 is the standard that governs assurance on greenhouse gas statements. It addresses engagements on emissions data specifically, whereas SA 600 covers group audits, SQC 1 covers firm quality control, and SRS 4400 covers agreed-upon procedures that provide no assurance conclusion.

  1. AStandard on Assurance Engagements (SAE) 3410 on assurance engagements on greenhouse gas statementsCorrect
  2. BStandard on Auditing (SA) 600 on group audits
  3. CStandard on Quality Control (SQC) 1 alone, without any engagement standard
  4. DStandard on Related Services (SRS) 4400 on agreed-upon procedures only

Explanation

SAE 3410 deals specifically with assurance engagements on GHG statements and is the relevant engagement standard. SA 600 concerns group financial statement audits and does not address emissions data. SQC 1 governs firm-level quality control and cannot replace an engagement standard. SRS 4400 applies to agreed-upon procedures, which do not give assurance.

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