Skip to content

ACCA Strategic Professional · Strategic Business Leader · Stakeholder analysis and organisational social responsibility

Bexley Retail's audit committee is considering whether to commission an environmental and social audit. The chair wants an audit that mainly checks whether the company is following its own stated policies, procedures and applicable regulations on emissions and labour practices, with findings reported to management. Which description best fits this?

This is a compliance-focused social and environmental audit. It tests actual practice against the company's own policies and applicable regulations on emissions and labour, and reports the findings, unlike a financial statement audit, stakeholder mapping or a balanced scorecard review.

  1. AA compliance-focused social and environmental audit, which tests actual behaviour against standards and policiesCorrect
  2. BA statutory financial audit opinion on the true and fair view of the accounts
  3. CA stakeholder mapping exercise using a power-interest grid
  4. DA balanced scorecard review of strategic objectives

Explanation

A social and environmental audit assesses performance against policies, regulations and targets, and reports on compliance. A financial audit addresses the financial statements, while the power-interest grid and balanced scorecard are analytic or management tools and do not test compliance.

Did you get it right without looking?

One question tells you little. A timed set on Stakeholder analysis and organisational social responsibility shows your real accuracy, how long you take and where you lose marks.

Practise Stakeholder analysis and organisational social responsibilityFree diagnostic mock

More Stakeholder analysis and organisational social responsibility questions