Reasonable Assurance (vs Limited Assurance)
Reasonable assurance is the higher assurance level under ISAE 3000 / ISAE 3410, conveying a positive opinion. Required for BRSR Core assurance route.
Definition
Reasonable assurance is the higher of the two assurance levels defined under the IAASB’s ISAE 3000 (Revised) and ISAE 3410 standards. The assurance provider conveys a positive opinion (“in our opinion, the subject matter information is, in all material respects, fairly stated”) after performing procedures designed to reduce engagement risk to an acceptably low level.
Reasonable vs limited assurance
| Aspect | Reasonable assurance | Limited assurance |
|---|---|---|
| Risk reduction | Reduces to acceptably low level | Reduces to acceptable level (higher than reasonable) |
| Procedures | More extensive — testing of controls + substantive procedures | Primarily inquiry + analytical procedures |
| Opinion form | Positive (“the information is fairly stated”) | Negative (“nothing has come to our attention”) |
| Effort | Significantly higher | Significantly lower |
| Cost | Higher | Lower |
Reasonable assurance for BRSR Core
The SEBI Circular on BRSR Core (12 July 2023) requires reasonable assurance of the BRSR Core attributes for entities in the assurance phase-in. Reasonable assurance for BRSR Core is typically delivered under ISAE 3000 (Revised) for non-GHG attributes and ISAE 3410 for GHG-specific attributes (Scope 1 + 2 emission intensity per revenue).
Per the December 2024 SEBI Industry Standards circular, listed entities may opt for either assessment or assurance of BRSR Core, per the standards developed by the Industry Standards Forum (ISF) in consultation with SEBI.
Related terms
- BRSR Core — what’s assured
- BRSR — the parent disclosure
- BRSR Core Assurance service