ACCA Strategic Professional · Advanced Audit and Assurance (International) · Specific assignments
Zephyr Foods plc asks its auditor, Marlowe & Co, to report on its published sustainability report. Marlowe & Co will carry out procedures that are less extensive than those for a reasonable assurance engagement, and will express its conclusion in a negative form. Which standard governs this engagement, and what level of assurance is provided?
ISAE 3000 (Revised) governs the engagement and the assurance is limited. Sustainability reports are non-financial subject matter outside ISAs, and a negative-form conclusion from less extensive procedures is the hallmark of limited assurance rather than reasonable assurance.
- AISAE 3000 (Revised); limited assuranceCorrect
- BISA 800; reasonable assurance
- CISRS 4400; limited assurance
- DISAE 3402; reasonable assurance
Explanation
Assurance engagements other than audits or reviews of historical financial information are governed by ISAE 3000 (Revised). A negative-form conclusion, based on less extensive procedures, reflects limited assurance. ISRS 4400 deals with agreed-upon procedures, which provide no assurance, so it is wrong.
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