ACCA/CAT

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2 You are a manager in Newman&Co,a global fi rm of Chartered Certifi ed Accountants.You are responsible for evaluating proposed engagements and for recommending to a team of partners whether or not an engagement should be accepted by your firm.

Eastwood Co,a listed company,is an existing audit client and is an international mail services operator,with a global network including 220 countries and 300,000 employees.The company offers mail and freight services to individual and corporate customers,as well as storage and logistical services.

Eastwood Co takes its corporate social responsibility seriously,and publishes social and environmental key performance indicators(KPIs)in a Sustainability Report,which is published with the financial statements in the annual report.Partly in response to requests from shareholders and pressure groups,Eastwood Co's management has decided that in the forthcoming annual report,the KPIs should be accompanied by an independent assurance report.An approach has been made to your firm to provide this report in addition to the audit.

To help in your evaluation of this potential engagement,you have been given an extract from the draft Sustainability Report,containing some of the KPIs published by Eastwood Co.In total,25 environmental KPIs,and 50 social KPIs are disclosed.

You have also had a meeting with Ali Monroe,the manager responsible for the audit of Eastwood Co,and notes of the meeting are given below.

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