IIA-CIA-Part1: NGO Members Enhance Credibility of Corporate Social Responsibility Audits

Learn how including nongovernmental organization (NGO) members on corporate social responsibility audit teams can boost the credibility of assurance reports. Prepare for the IIA CIA certification exam with expert insights.

Question

Which of the following is an advantage of using nongovernmental organization (NGO) members on an assurance team when auditing corporate social responsibility?

A. Typically less time is needed to train the NGO members on the audit process.
B. NGO members are often more unbiased and objective.
C. A report with a positive statement from an NGO member is deemed to be more credible.
D. As opposed to auditors, NGO members are licensed to audit corporate social responsibility.

Answer

C. A report with a positive statement from an NGO member is deemed to be more credible.

Explanation

Including NGO members on an assurance team when auditing corporate social responsibility (CSR) programs enhances the perceived credibility and objectivity of the findings. NGOs are generally viewed as unbiased, mission-driven organizations dedicated to social and environmental causes. Their participation signals that the audit was conducted independently and without undue corporate influence.

While NGO members can provide valuable expertise, they typically require training on audit procedures and methodology (A). And although NGO representatives aim to be objective (B), auditors are bound by professional standards and a code of ethics requiring impartiality and independence. Finally, auditors, not NGO members, are specifically licensed and qualified to perform CSR audits (D).

The key advantage is the boost in credibility that comes from having a respected NGO member contribute to the assurance report. This increases stakeholder confidence that the CSR program was thoroughly and objectively audited by an independent team.

IIA-CIA-Part1 certification exam practice question and answer (Q&A) dump with detail explanation and reference available free, helpful to pass the IIA-CIA-Part1 exam and earn IIA-CIA-Part1 certification.