A company prepares sustainability-related disclosures in accordance with IFRS Sustainability Disclosure Standards and engages a practitioner to provide assurance on them. Which of the following statements is correct?

Correct answer: D) The engagement may give limited or reasonable assurance, and either level increases users' confidence in the disclosures

Explanation

Assurance on sustainability information can be provided at a limited or a reasonable level, depending on the terms of the engagement and the evidence available, and in either case an independent conclusion adds credibility for investors and other users. IFRS Sustainability Disclosure Standards are issued by the International Sustainability Standards Board (ISSB), not the IAASB, which sets auditing and assurance standards. Management remains responsible for preparing the disclosures, as in any assurance engagement.