Skip to content

CS Professional · CSR and Social Governance · Social Impact Assessment and CSR Audit

Kaveri Pharma Ltd appoints a firm to carry out its CSR audit. During planning, the auditor first reads the CSR policy, the Board's annual action plan and the CSR Committee minutes. What is the main purpose of this step?

The auditor reads the policy, action plan and committee minutes to establish the benchmark for the audit. These documents show what the company approved and committed to, so actual projects and expenditure can be tested against them for conformity during later fieldwork.

  1. ATo compute the company's tax liability on CSR spending
  2. BTo fix the audit criteria against which actual projects and expenditure will be testedCorrect
  3. CTo decide the dividend payable to shareholders
  4. DTo recommend the appointment of the statutory auditor

Explanation

Policy, action plan and committee minutes set out what the company committed to do. The auditor uses them as the benchmark for testing actual projects and spending. They are not used for tax computation or dividend decisions.

Did you get it right without looking?

One question tells you little. A timed set on Social Impact Assessment and CSR Audit shows your real accuracy, how long you take and where you lose marks.

Practise Social Impact Assessment and CSR AuditFree diagnostic mock

More Social Impact Assessment and CSR Audit questions