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CS Professional · Internal and Forensic Audit · Emerging Issues and Challenges

During an ESG data audit at Sunrise Cements Ltd, the internal auditor finds that plant-level carbon emission figures are entered manually in spreadsheets by plant staff, with no review before they are consolidated at head office. Which is the most appropriate recommendation?

The best recommendation is to document the measurement methodology, add independent review, and reconcile reported emissions to source records like meter readings and fuel invoices. This closes the control gap of unreviewed manual entries, whereas stopping disclosure or reporting selectively would be improper and misleading.

  1. AReplace the plant staff with external consultants
  2. BIntroduce documented methodology, independent review and reconciliation of plant data to source records such as meter readings and fuel purchase invoicesCorrect
  3. CStop reporting emissions until a new system is bought
  4. DReport only the plants whose data look reasonable

Explanation

The weakness is lack of a review and source-linked reconciliation, which risks misstatement. A defined methodology with independent review and tie-out to source records directly addresses it. Stopping reporting or selective reporting would breach disclosure obligations and bias the data.

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