Which audit type reviews sustainability, CSR, and environmental compliance?

Which audit type reviews sustainability, CSR, and environmental compliance?

• A. Transaction audits
• B. Quality audits
• C. Social & environmental audits
• D. Compliance testing

Answer: (C)

Audits focused on ESG performance assess how well an organization manages sustainability, CSR, and environmental compliance. They examine policies, governance, data collection, and reporting around sustainability, verify the claims made in sustainability reports, and check compliance with environmental laws and standards. This makes them the best fit for reviewing both social responsibility and environmental aspects. The other options don’t fit as well because: transaction audits look at individual financial transactions and their controls; quality audits focus on product or service quality and related processes; compliance testing checks adherence to specific laws or regulations (often financial or regulatory) but not the broader sustainability and CSR scope.

Audits focused on ESG performance assess how well an organization manages sustainability, CSR, and environmental compliance. They examine policies, governance, data collection, and reporting around sustainability, verify the claims made in sustainability reports, and check compliance with environmental laws and standards. This makes them the best fit for reviewing both social responsibility and environmental aspects.

The other options don’t fit as well because: transaction audits look at individual financial transactions and their controls; quality audits focus on product or service quality and related processes; compliance testing checks adherence to specific laws or regulations (often financial or regulatory) but not the broader sustainability and CSR scope.