An entity’s mission and objectives should never A strategic audit is a type of management audit

be changed in order to have consistency in the that is extremely useful as a diagnostic tool to
audit. FALSE pinpoint corporate-wide problem areas and to
highlight organizational strengths and
In reviewing corporate governance as part of a weaknesses. TRUE
strategic audit, a member of the board’s length
of service need not be considered. FALSE The economic value added is the present value
of the anticipated future stream of cash flows
The scan and assessment of a corporation’s plus the value of the company if liquidated.
external environment involves determining all TRUE
its strengths and weaknesses. FALSE According to the Global Reporting Initiative, a
Assessing the corporation’s internal corporate social responsibility report presents
environment involves its corporate structure, the organization’s values and governance
models and demonstrates the link between its
corporate culture, and its societal environment.
strategy and its commitment to a sustainable
FALSE
global economy. TRUE
In reviewing corporate governance as part of a There is a growing expectation towards public
strategic audit, information to be considered sector organizations to create a value for all
include whether the entity is privately held or interested stakeholders that is sustainable from
publicly traded and if there are different classes an economic, social, and environmental point
of stocks with different voting rights. TRUE of view. TRUE
A situational analysis involves determining the To ensure that an entity does not overlook new
most important internal and external factors business developments and trends, it is
that strongly affect the corporation’s present recommended to repeat the assessment of
and future performance. TRUE sustainability metrics every 5 years. FALSE

A strategic audit ends with the implementation Assessment of sustainability metrics leads to
of strategic alternatives and recommended strategy, reporting, and communication, being
aligned along uniform priorities, while
strategies. FALSE
strengthening the relationships with your most
A process through which an organization’s important stakeholders. TRUE
sustainability performance is measured and In summarizing the assessment of external
communicated is referred to as financial factors, the audit will consider the forces and
accounting and reporting. FALSE factors that are most important in the present
time only. FALSE
The idea of sustainability firstly emerged as a
social and environmental concept. FALSE The discipline of true cost accounting enables
us to understand more about the scale and
A sustainability report is published by a
nature of “externalities” by identifying,
company or organization primarily about the
categorizing and quantifying, and, where
financial impacts of its everyday activities.
possible, pricing all the different costs and
FALSE
benefits involved. TRUE
Sustainability accounting and sustainability
The economic value added is the present value
reporting are terms used interchangeably.
FALSE of the anticipated future stream of cash flows
plus the value of the company if liquidated. –
The effect of hidden costs or expenses not TRUE
included the purchase price of products are
negligible because they are paid through Sustainability is important to business
environmental taxes and private health resilience because it considers the planet,
insurances. FALSE
people, profit, and corporate social Which of the following is not part of the GRI
responsibility. – TRUE 300 series of topic-specific standards?
Economic Performance
Reviewing an entity’s corporate governance
not only involves it board of directors, but also Which of the following is most likely
its top management. – TRUE consideration in assessing an organization’s
corporate culture? The structure is clearly
A strategic audit is a type of management audit
understood by everyone in the corporation
that is extremely useful as a diagnostic tool to
pinpoint corporate-wide problem areas and to Which of the following is least likely part of the
highlight organizational strengths and assessment of a corporation’s external
weaknesses. – TRUE environment? How well the corporation is
performing in terms of analysis of market
Social and environmental accountability by
position and marketing mix in both
firms cannot be compromised by a lack of
domestic and international markets.
democracy within engagement and decision-
making processes. – FALSE Which of the following is least likely an aspect
Which of the following is least likely a reason of employee matters with regard to
why sustainability is important to business sustainability metrics? Prevention of human
resilience? Enables organizations to create rights abuses
value for its shareholders while it also Which of the following is least likely a general
contributes to society by focusing on the
sustainability topic in the Task Force on
needs of the current generation
Climate-related Financial Disclosure (TCFD)
Which of the following least likely is involved in reporting standard/framework? Business
the strategic audit of an entity’s information model and innovation
systems? Appropriate mix of people and
machines in the firm or of support staff to Which of the following is least likely a social
professionals in service firms sustainability metric? Company turnover
Which of the following is not included in the The social responsibility of business does not
steps of a strategic audit? None of the encompass which of the following expectations
choices that society has of organizations at a given
point in time? None of the Choices
The implementation of alternatives and
recommended strategies should consider In reviewing an entity’s top management,
which of the following, except? Capability of which of the following is least likely to be
current information system to provide considered? Their oversight of the entity’s
sufficient feedback other top managers
Which of the following is least likely a general Which of the following is least likely an external
sustainability topic in the integrated reporting benefit of sustainability reporting? Increased
framework? None of the choices understanding of risks and opportunities
In the assessment of a corporation’s task Which of the following is a driver of
environment, all of the following is least likely sustainability reporting? All of the choices
to be considered? Rivalry among buyers
Assessment of corporate resources include the
Which of the following is least likely an internal following aspects, except Corporate structure
benefit of sustainability reporting? Mitigating
negative environmental, social and A matter is material if it could substantively
governance impacts affect the organization’s ability to created value
in the short, medium or long term according to
what reporting standard/framework? IR
Framework
In the evaluation of current performance
results, which is most likely to be evaluated?
All of the choices
Which of the following least likely is involved in
the strategic audit of an entity’s information
systems? - Appropriate mix of people and
machines in the firm or of support staff to
professionals in service firms
Represents an information and management
method that creates and provides information
aimed at demonstrating an organization’s
progress towards its sustainable goals. -
Sustainability accounting
Traditional financial measures for the purpose
of evaluation and control include the following,
except: - none of the choices
Social, economic, and environmental elements
are one of the significant challenges for
organizations and society. – True