Q26. How does the financial auditing concept of materiality relate to the social auditing process?
a. Users of a social audit could be misled if the audit fails to include material measures of stakeholders’ perspectives.
b. If the company does not consider customers to be important stakeholders, they should not be included in the social audit.
c. Tight internal control must be in place to ensure the overall reliability of the contents of the social audit.
d. It is important that every issue of concern to every stakeholder be included in the audit in order to make it complete.
e. There must be a way to independently verify the accuracy of the information about a company’s social responsibility efforts.
Answer
- Users of a social audit could be misled if the audit fails to include material measures of stakeholders’ perspectives.
Exploitation to the above answer:
It is duty of the financial auditor to show all his material finding in his report so that stakeholder could have information about company’s working during the period .Financial auditor should assesses and verify risks and internal controls and along with this he should give financial control information by collecting, analyzing, and summarizing data and trends so in short we could say that he should provide all the material information . if financial auditor audit fails to include material measures of stakeholders’ perspectives, Users of a social audit could be misled.
