Question

Why is it important that an audit of a company’s operations be conducted by an independent organization? How could a firm benefit from working with NGOs to conduct a social audit of operations? What are the dangers of doing this? Which approach would you use if a major client wanted you to demonstrate your CSR commitment?

Answer 1

Audit is a one of the main important aspect in any business organization. The main reason of conducting an audit in any business organization is to maximize the effectiveness of financial statements by providing proper written reasonable assurance from an independent company that the provided information is true as per standard accounting.

NGO (non government organization ) it is also called as non profit organizations such as old age homes, blind school etc.

If any firm is working with NGO as a part of CSR (corporate social responsibility), the firm shows concern for the society people. and firm makes good name and fame. also with good social audit for working with NGO will helps the company/firms work assurance quality for concerning about poor or physically disabled people.

also working with NGO indirectly motivates the society people to join the firm, thereby increase the manpower to the firm best results.

In some cases the society people will not satisfy for firm working NGO. In that sense it create bad impression on society people. eventually the audit may fail. the firm can lose the business in that particular locality.

when our major clients ask us to demonstrate, i would like to support for NGO/NPF (non profit organization ) as a part of CSR . since the NPF does not have any direct income, it is always good to serve for the poor people who are economically backward. Along with that by providing the proper educations to the people of NPF we can make them strong in front of society by supporting in all the manner.