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CA Final SDG and ESG Assurance — practice questions — page 2

Explore 43 free SDG and ESG Assurance questions in CA Final Auditing. Open each question or exercise to read its content, reference answers and available explanation.

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SDG and ESG Assurance questions and exercises with answers

Showing questions 31–43 of 43.

What is true of ESG rating metrics at present?Read the answer and worked solution →An ESG risk rating mainly measures what about a company?Read the answer and worked solution →What is the US legal test of materiality?Read the answer and worked solution →For sustainability data to be useful, it must be reliable and also what?Read the answer and worked solution →Sustainability reports are intended to be "vessels of what"?Read the answer and worked solution →Which of these is another name used for ESG reporting?Read the answer and worked solution →Which theory underlies European sustainability reporting?Read the answer and worked solution →Which economist argued social responsibility adversely affects a firm's financial performance?Read the answer and worked solution →Which 2005 report for UNEP FI concluded that integrating ESG issues into investment analysis was permissible?Read the answer and worked solution →Which ESG dimension covers preventing bribery and corruption and executive compensation?Read the answer and worked solution →Employee safety and health, working conditions and diversity data belong to which ESG dimension?Read the answer and worked solution →Greenhouse gas emissions, biodiversity loss and water management data belong to which ESG dimension?Read the answer and worked solution →The 1977 Sullivan Principles were a code of conduct for firms doing business in which country?Read the answer and worked solution →

Worked practice questions

What is true of ESG rating metrics at present?

  1. One law fixes all metrics
  2. Each agency uses own metrics
  3. SEBI sets one global scale
  4. All use identical scores
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Correct answer: B. Each agency uses own metrics

Each rating agency uses its own metrics, and at present there is no industry-wide set of common standards.

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An ESG risk rating mainly measures what about a company?

  1. Its charity donations
  2. Its annual profit growth
  3. Its exposure to ESG risks
  4. Its yearly audit fees
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Correct answer: C. Its exposure to ESG risks

Risk rating agencies such as MSCI and Sustainalytics measure how exposed a company is to ESG risks rather than its concrete actions.

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What is the US legal test of materiality?

  1. Fact exceeds 5% of profit
  2. Fact alters an investor's total mix
  3. Fact is vetted by auditors
  4. Fact is in the annual report
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Correct answer: B. Fact alters an investor's total mix

A fact is material if there is a substantial likelihood a reasonable investor would view it as significantly altering the total mix of information.

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More Auditing topics

Auditor's ReportOverview of Audit of Public Sector UndertakingsInternal AuditStandards on Auditing and Professional EthicsInternational Ethics Standards Board for AccountantsRisk Assessment and Internal ControlSpecial Features of Audit of Banks and Non-Banking Financial CompaniesAuditor's Report on Financial Statements