ACCA Applied Knowledge · Business and Technology · Environmental and sustainability factors
A manufacturer wants to check systematically whether its operations comply with environmental legislation and its own environmental policies, using an independent review of processes and records. Which tool is this?
This is an environmental audit. It is a systematic and documented review of an organisation's operations, records and processes to test compliance with environmental laws and its own policies, and it helps identify risks and improvements, unlike financial variance reviews or market life cycle analysis.
- AAn environmental auditCorrect
- BA budgetary variance review
- CA product life cycle analysis of market demand
Explanation
An environmental audit is a systematic, documented evaluation of how far operations meet legal requirements and internal environmental policies. A variance review deals with financial budgets, and a product life cycle analysis of demand concerns sales stages, not environmental compliance.
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