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

Zephyr plc asks Karim & Co to provide assurance on the sustainability section of its annual report. The engagement will be performed under ISAE 3000 (Revised). The directors want the report to say that the information is 'free from material misstatement' without any qualification. Which type of assurance conclusion is consistent with that wording?

A reasonable assurance conclusion expressed in positive form fits wording that information is free from material misstatement. Limited assurance gives only a negative-form statement that nothing has come to the practitioner's attention, while agreed-upon procedures and compilations provide no assurance conclusion at all.

  1. AA reasonable assurance conclusion, expressed positivelyCorrect
  2. BA limited assurance conclusion, expressed negatively
  3. CAn agreed-upon procedures report with factual findings only
  4. DA compilation report with no assurance conclusion

Explanation

Under ISAE 3000 (Revised), reasonable assurance gives a positive form of conclusion, such as that the subject matter is prepared in all material respects in accordance with criteria. Limited assurance gives a negative-form conclusion, that nothing has come to attention. Agreed-upon procedures and compilations give no assurance conclusion.

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