ACCA Applied Knowledge · Business and Technology · Sustainable business practices
Brightwell plc is considering an environmental management system. Which of the following is the most accurate description of an environmental audit as part of this approach?
An environmental audit is a systematic review of how an organisation's activities perform against its environmental policies, targets and legal requirements. It identifies weaknesses and supports improvement and accountability. It differs from a financial statutory audit, an asset valuation or a tax inspection.
- AA statutory audit of the financial statements by external auditors to confirm profit
- BA systematic review of an organisation's environmental performance and compliance against policies, targets and regulationsCorrect
- CA calculation of the market value of the company's natural assets for the statement of financial position
- DA tax inspection of environmental levies paid to government
Explanation
An environmental audit systematically assesses performance and compliance against policies, targets and legal requirements, supporting accountability and improvement. It is not a financial statement audit, a valuation of natural assets for the balance sheet, or a tax inspection.
Did you get it right without looking?
One question tells you little. A timed set on Sustainable business practices shows your real accuracy, how long you take and where you lose marks.
More Sustainable business practices questions
- A company publishes a sustainability report stating it is 'committed to a greener future' and showing photographs of wind farms, but gives n…
- A manufacturer publishes a report showing its carbon emissions, water use and waste, and sets targets for reducing each over five years. Whi…
- Which of the following is the strongest reason for a board to integrate sustainability into core business strategy rather than treat it as a…
- According to the stakeholder view of CSR, to whom does a company owe responsibilities?
- Milton Foods donates 1% of annual profit to local community projects and encourages staff to volunteer. Which level of corporate responsibil…
- Kestrel Foods voluntarily funds a local school and cuts packaging waste, even though no law requires this and it does not expect a direct fi…