Accounting: Business Reporting for Decision Making 7th Edition by Jacqueline Birt Solution manual
www.epa.vic.gov.au/our-work/environmental-auditing. What is environmental auditing? What is a 53V audit? What is the role of the auditor in the 53V process?
Environmental auditing assesses industrial processes/activities to determine the type of pollution and the harm it poses to the environment. The auditor provides independent and transparent advice and recommendations on how identified environmental risks may be reduced.
A 53V (‘risk of harm’) audit is most commonly conducted to understand the risk to the environment posed by an industrial activity or to validate that contaminated land or groundwater has been cleaned up. It also includes the construction and operation of landfills.
The role of the auditor is to review existing information about the activity, premises and/or segment of the environment. The auditor collects and verifies evidence to support findings based on the criteria. The auditor evaluates the data to determine compliance with the criteria. The auditor provides an opinion on the risk posed and then writes an audit report providing justification to support their assessment. The 53V audit report must be provided to EPA within seven days.
1.26 GRI framework
You are a CFO in an organisation that is considering reporting on CSR using the GRI Standards. The CEO has asked you to prepare a report for the board supporting such a proposal. In this report you should outline:
1. the benefits of CSR reporting
2. the likely costs of CSR reporting
3. to whom the company will be reporting
4. what will be covered in the report
5. how this process will support the business strategy.
1.27 Business sustainability
Critique the role that regulation plays in encouraging business sustainability. In other words, assess whether you feel the government should regulate to protect the environment’s and society’s needs or whether companies would ‘do the right thing’ anyway. In your answer, define regulation and business sustainability. Give your opinion as to whether existing legislation such as work health and safety and industrial relations (such as award wages) are necessary or just an extra burden on business that destroys efficiency and productivity.
Business sustainability is about making decisions for the long-term benefit of the business, environment and society. Government regulation helps promote behaviour and outcomes deemed valuable by that society. Regulation is used when business and citizens may act differently to what is generally good for society. It is not only useful in trying to promote the good of society as a whole, but also to protect minority rights or aspects of life that could not protect themselves. The environment is a good example of this. No one person or entity owns ‘the atmosphere’. Legislation surrounding land ownership and rights to use land have been available in some shape or form for centuries. Water rights have been given greater legislative status over the last century. Given the shortage of water and its flows from one country to another over large continents the debate over water rights will no doubt increase over the next century and international organisations may increase calls for agreement over such rights. However, the atmosphere has not in the past been valued or traded. Yet high-polluting entities may affect the lives of others not economically benefiting from the production of the polluting entity. So regulation over carbon emissions in the environment (by taxing it or through carbon trading) is one way the government can help promote acceptable behaviour. Some entities may have been concerned about the effect their production processes have on aspects of the environment and some may not. Through regulation the value of the atmosphere to all of society can be promoted.
Environmental auditing assesses industrial processes/activities to determine the type of pollution and the harm it poses to the environment. The auditor provides independent and transparent advice and recommendations on how identified environmental risks may be reduced.
A 53V (‘risk of harm’) audit is most commonly conducted to understand the risk to the environment posed by an industrial activity or to validate that contaminated land or groundwater has been cleaned up. It also includes the construction and operation of landfills.
The role of the auditor is to review existing information about the activity, premises and/or segment of the environment. The auditor collects and verifies evidence to support findings based on the criteria. The auditor evaluates the data to determine compliance with the criteria. The auditor provides an opinion on the risk posed and then writes an audit report providing justification to support their assessment. The 53V audit report must be provided to EPA within seven days.
1.26 GRI framework
You are a CFO in an organisation that is considering reporting on CSR using the GRI Standards. The CEO has asked you to prepare a report for the board supporting such a proposal. In this report you should outline:
1. the benefits of CSR reporting
2. the likely costs of CSR reporting
3. to whom the company will be reporting
4. what will be covered in the report
5. how this process will support the business strategy.
- Benefits. Benefits would include the actual recognition of environmental and social initiatives; the tracking of an organisation’s environmental and social footprint; the increased ability to make a difference to environmental and social outcomes due to the increased awareness from the reporting; and the possible positive public relations that would flow from the reporting process.
- Costs. Costs would include the cost of analysis, preparation and reporting; as well as the costs of setting up systems to gather data, process data and audit outcomes.
- Reporting. The company will be reporting to all stakeholders of the business, including society in general and the physical environment in which it operates. That is, CSR reporting goes beyond financial reporting to include information about economic, environmental, social and governance performance.
- Coverage. The standard coverage of a GRI report would include strategy and analysis; organisational profile; any identified material aspects; stakeholder engagement; profile; governance; ethics and integrity; management approach; and economic, environmental and social indicators.
- Business strategy report. Sustainability reporting is only as good as the sustainability strategy that the report describes. Through the data capture and reporting process there will be a greater awareness of environmental and social initiatives and impact. This will help an organisation with their strategy formulation and implementation.
1.27 Business sustainability
Critique the role that regulation plays in encouraging business sustainability. In other words, assess whether you feel the government should regulate to protect the environment’s and society’s needs or whether companies would ‘do the right thing’ anyway. In your answer, define regulation and business sustainability. Give your opinion as to whether existing legislation such as work health and safety and industrial relations (such as award wages) are necessary or just an extra burden on business that destroys efficiency and productivity.
Business sustainability is about making decisions for the long-term benefit of the business, environment and society. Government regulation helps promote behaviour and outcomes deemed valuable by that society. Regulation is used when business and citizens may act differently to what is generally good for society. It is not only useful in trying to promote the good of society as a whole, but also to protect minority rights or aspects of life that could not protect themselves. The environment is a good example of this. No one person or entity owns ‘the atmosphere’. Legislation surrounding land ownership and rights to use land have been available in some shape or form for centuries. Water rights have been given greater legislative status over the last century. Given the shortage of water and its flows from one country to another over large continents the debate over water rights will no doubt increase over the next century and international organisations may increase calls for agreement over such rights. However, the atmosphere has not in the past been valued or traded. Yet high-polluting entities may affect the lives of others not economically benefiting from the production of the polluting entity. So regulation over carbon emissions in the environment (by taxing it or through carbon trading) is one way the government can help promote acceptable behaviour. Some entities may have been concerned about the effect their production processes have on aspects of the environment and some may not. Through regulation the value of the atmosphere to all of society can be promoted.