In assurance engagements, what are suitable criteria?

In assurance engagements, what are suitable criteria?

• A. Metrics that are fully a guess and not auditable.
• B. Metrics that cannot be fully assured by an audit.
• C. SASB standards are designed to be the smallest subset of auditable metrics.
• D. Metrics that are possible to be fully assured by an audit; SASB standards are designed to be as close to this as possible.

Answer: (D)

In assurance engagements, the goal is to provide a high level of confidence in information through independent evidence and evaluation. The suitable criteria are metrics that can be fully supported by an audit, meaning there is enough objective evidence to form a conclusion about the information’s reliability. SASB standards are designed to maximize auditability, aiming for metrics that are as close as possible to fully auditable. This makes it feasible for an assurance practitioner to attest to the disclosures with a robust level of certainty. The other ideas don’t fit because metrics that are merely guesswork or not auditable don’t support credible assurance, and SASB isn’t about keeping the set of auditable metrics to a small, minimal subset; it’s about designing standards to be as auditable as possible.

In assurance engagements, the goal is to provide a high level of confidence in information through independent evidence and evaluation. The suitable criteria are metrics that can be fully supported by an audit, meaning there is enough objective evidence to form a conclusion about the information’s reliability. SASB standards are designed to maximize auditability, aiming for metrics that are as close as possible to fully auditable. This makes it feasible for an assurance practitioner to attest to the disclosures with a robust level of certainty.

The other ideas don’t fit because metrics that are merely guesswork or not auditable don’t support credible assurance, and SASB isn’t about keeping the set of auditable metrics to a small, minimal subset; it’s about designing standards to be as auditable as possible.