This section provides practice questions on Social Impact Assessment (SIA) and CSR Audit, essential for understanding CSR & Social Governance under the Professional Programme (New Syllabus, Paper 4.1). It covers key areas such as impact classification, importance of SIA, principles, processes, methods, and tools for assessment. The questions include matching exercises, fill-in-the-blanks, and corrections, helping learners apply concepts effectively.
The assessment begins with identifying social, economic, and infrastructure impacts and follows with fill-in-the-blanks on SIA definitions. There are exercises on matching social impacts with relevant categories and evaluating the importance of impact for different stakeholders (corporates, government, and communities). It also tests knowledge on SIA principles, such as public involvement, equity analysis, and impact assessment focus. Furthermore, the section emphasizes the corporate social audit process, assessing financial transparency, fair hiring practices, and social responsibility compliance.
The taxation section tests understanding of CSR expenditure treatment, income tax implications, and ITC availability on CSR-related expenses. Questions cover deductions under relevant sections of the Income Tax Act, recognition and measurement of CSR spending, and its impact on financial reporting. This comprehensive set of exercises ensures a structured approach to understanding CSR audits, social impact assessments, and corporate accountability.
Chapter 4 questions
(Social Impact Assessment & CSR Audit)
(PROFESSIONAL PROGRAMME New Syllabus)
(Group-1_Paper-4.1 – CSR & SOCIAL GOVERNANCE)
(this covers whole chapter, so open the chapter and start answering, for better practice print it then try to solve.)
Q1. classify illustrative list of possible impacts in respective heads:
| 1. Social/Cultural
2. Economic 3. Public infrastructure and services (there is one wrong item here, please cross it) |
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2. Fill in the blanks: (social impact assessment meaning):
As per international institute of _________________________,”a social impact assessment is a process of ____________, planning and ______________of social __________ or consequences (positive and negative, intended and _____________) arising from policies, plan, development and ______________”.
3. Match examples of social impact with correct heads:
| 1. Peoples’s way of life
2. their culture 3. their community 4. their political system 5. their health and well being There is one wrong, please write the correct one here : |
1. its cohesion, stability, character, services and facilities.
2. health is a state of complete physical, mental, social and spiritual wellbeing and not merely the absence of disease or infirmity. 3. that is, how they live, work, play and interact with one another on a day-to-day basis. 4. This not only serves as feedback for companies to plan and allocate resources better but shall also deepen the impact of CSR. 5. that is, their shared beliefs, customs, values and language or dialect. |
4. Match the Importance of Social Impact Assessment with correct heads:
| 1. To drive answerability:
2. To secure future funding: 3. To check the project’s progress against the planned: 4. To learn from experience: 5. To motivate staff and volunteers: |
1. Showing the volunteers and staff real and concrete evidence of their impact, will make them feel great.
2. Person who give money want to know how the funds are being utilised by company. 3. Appropriate monitoring and evaluation of project means one can see what has worked well and what has not. 4. A social impact assessment process also helps keep an eye on whether timelines & budgets are being adhered to as stipulated. 5. Investor will invest more only after understanding impact of project on target stake holder |
5. Match the importance of impact would mean different, For different stakeholders, in correct head:
| 1. Corporate
2. government 3. community (there is one wrong item here, please cross it) |
1. Improvement in different indicators (SDGs, Niti Ayog ranking, etc.)
2. Providing better quality of life to citizen at last mile – Higher Resilience
|
6. Match Principles of Social Impact Assessment with respect head:
|
1. Often, time and resources available for doing social impact assessment are very limited. In such circumstances, the best course is to focus on the most significant social impacts, giving high priority to impacts identified by the people themselves.
2. A social impact assessment not only predicts the likely impacts, it should also identify means to mitigate those adverse impacts. 3. Projects affect different groups differently. Impacts should therefore be specified differentially for affected groups, not just measured in the aggregate. 4. The SIA findings are inputs for designing a project to mitigate negative impacts and enhance positive impacts. 5. The SIA findings are inputs for designing a project to mitigate negative impacts and enhance positive impacts. 6. SIAs draw on the following three sources of information: (a) Published scientific literature, (b) Secondary data sources including various government documents and official reports, and (c) Primary data from the affected area. 7. Often, data relevant and necessary to carry out an assessment is not available yet the SIA is to be carried out.:- It is important to first identify all potentially affected groups and individuals, and involve them throughout the Social Impact Assessment (SIA) process. 1. SIA should use easily understood methods and assumptions that are transparent and replicable. 2. Trained social scientists using social science research methods alone will get the best results |
7. Rearrange the Social Impact Assessment process in correct order:
(there is one wrong in bellow, cross it)
- formulation of alternative
- scoping
- develop monitoring programs and feedback mechanism
- establish baseline
- propose mitigation measured
- predict responses to impact
- public involvement
- describe proposed action
- assess and evaluate cumulative social effects
8. Rearrange the Stages in social impact assessment in correct order:
(there is one wrong in bellow, cross it)
- Screening to determine the boundaries of the Social Impact Assessment
- Describe the proposed action or policy change and reasonable alternatives
- Develop Monitoring Plan & Mitigation Measures
- Develop an effective public plan to involve all potentially affected members of the public
- The cause-effect relationship is central.
- Predicting Responses to Impacts
- Describe the relevant human environment/ area of influence and baseline conditions
- Scoping to identify the full range of probable social impacts
9. Match the approaches an method of social impact assessment with respective heads:
|
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10. Below The tool to be utilised for conducting Social Impact Assessment should provide for are mentioned, point out the wrong ones.(wrong one means that are not stated in paragraph, i even if it is logically correct but if it is not mentioned there word to word, then it is wrong)
i. baseline information about the social and economic conditions prevailing or existing in the project area;
ii. Information on key stakeholder under social impact assessment;
iii. Information on potential impacts of the project and the characteristic of the impacts,magnitude, distribution, and their duration upon the community and target stakeholders;
iv. Information on meetings held for social impact assessment;
v. Information on who will be the affected group, positively or negatively;
vi. In formation key indicators of social impact assessment;
vii. Information on perceptions of the affected people about the project and its impact;
11. Below questions that should commonly be addressed in social impact assessment are mentioned, point out the wrong ones.(wrong one means that are not stated in paragraph, i even if it is logically correct but if it is not mentioned there word to word, then it is wrong)
- Who are the key stakeholders? What do they already know about the proposed project, its impact and the measures being contemplated to mitigate its negative impact?
- What are their interests? Are the objectives of the project consistent with their needs, interests, and capacities?
- What is the impact of the project on various stakeholders, and particularly on women and vulnerable groups?
- What are the core principles by which organisation engages with its stakeholders?(periodicity, frequency, agency)
- What social factors affect the ability of stakeholders to participate or benefit from the operations proposed? (gender, caste, ethnicity, or income level)
- What are key factors relevant to factors affecting stakeholders interest?
- Whether any baseline information is collected by company that would help understanding impact on stakeholders?
- What institutional arrangements are needed for participation and project delivery?
- What are the risks which might affect the success of the project? (lack of commitment or capacity, resource crunch, incompatibility with existing conditions)
12. Match the tool of Social Impact Assessment with respective heads: (there is wrong one in both heads)
|
1. This tool is based on the recognition that thresholds exist in the environment and projects can be assessed in relation to the carrying capacity or threshold determined, together with additional activities.
2. this tool of conducting Social Impact Assessment provides a systematic way of ensuring that all likely events resulting from a project are considered. 3. Under this tool, the information is gathered from establishing direct communication with the target stakeholders and community. 4. This is an analytical tool which enables the quantification of cause-and-effect relationships by simulating environmental conditions. 5. This tool uses Geographical Information Systems (GIS) and overlay maps to identify where the cumulative impacts of a number of different actions may occur, and impact interactions. 6. is a concise overview highlighting key points of a document or report for quick decision-making. 7. Under this tool, basic to advance level of questionnaire is prepared and circulated amongst the community or target beneficiaries of project in order to ascertain their lifestyle, prevailing 8. A means of both identifying and assessing indirect and cumulative impacts and impact interactions. 9. This tool of conducting Social Impact Assessment is a more complex form of checklist. This tool can be used quantitatively and can evaluate impacts to some degree |
13. Rearrange the format of social impact assessment in correct order: (one of following is wrong)
i. inventory of lossess to households
ii. affected population
iii. mitigation plan
iv. public consultation and disclosure
v. methods in identifying projects impact
vi. introduction
vii. findings and recommendations
viii. network and analysis
ix. affected vulnerable groups
x. anticipated project impact
xi. description of project
xii. losses to community.
14. Match the corporate social auditor examines the following elements of a company, with respective heads:
| – Transparency with financial and accounting practices
– Transparency with product defects or other issues – Fair hiring practices and employee treatment – Participation in charitable giving |
– The audit may evaluate what percentage of its profits it donates to worthy causes.
– A corporate social audit can determine how transparent a company is with its financial and accounting practices. It ensures that all staff members report information accurately and that the company files its taxes according to state and federal regulations. – A corporate social audit can also determine if a company participates in fair hiring practices. – A corporate social audit reports if a company has been transparent with any issues in its products or other offerings |
15. Following Responsibility of Auditors are written with wrong data correct it : (match word to word)
- The activity/ project undertaken is within the purview of Schedule IV of the Act.
- If mere contribution/donation/profit is given, then the same is specifically notallowed as per Schedule IIV of the Act.
- Separate disclosure of profits arising under CSR activities is made as per
Schedule VII of the Act. - The profit on the project is incurred as per Companies (CSR committee andPolicy) Rules 2016.
- The company has complied with applicable Accounting and Auditing Standards inaccounting, recognition,auditing and disclosure related to CSR project.
- He has complied with relevant Standards on Auditing for audit of CSR spend including:– SA 130 – Consideration of Laws and Regulations in an Audit of Balance Sheet and cash flow – SA 270 (new) – The Auditor’s Responsibilities Relating to CSR Information.
16. Which of the following are not major issues involved in accounting for csr :
- General Recognition & Measurement criteria of CSR
- Spend Treatment of Unspent CSR Amount
- Spend Treatment of excess CSR Amount
- communication with community as a whole
- Treatment of Excess CSR Spent
- Measurement of CSR spend made in kind
- Treatment of CSR expenditure
- Treatment of Surplus arising out of CSR Activities
- Amount approved by Board of Directors
- Presentation & Disclosure Requirements
17. Taxation aspects relating to CSR : (more important, in my view, as it is more tricky than above questions)
1. CSR expenditure deemed to be part of PGBP, but not form part of Income FromOther Sousrce, this is provide in sec- 73(3),proviso-2.
(correct the information)
2. CSR expenditure is ______________ of income and hence ____ incurred wholly and exclusively for purpose of business. (F.I.B.)
3. CSR provisions are intended for corporate to _____________ burden of government in providing social servies and allowing such ________________ to PGBP would mean ______________________________ of such expenditure by govt.
4. CSR expenditure which falls under _______________ would be allowed as deduction.
5. CSR donations are eligible for deduction u/s- __________ of income tax act.
6. Specific tax exemptions have been extended to CSR Expenditure.(correct the information)
7. CSR expenditure can be claimed as csr expenditure.
8. Company distribute distributed electrical items like, switches, fan, cables etc. to flood affected people under CSR expenses on free basis without collecting any money. (whether ITC available)
9. CSR expense has direct bearing on the manufacturing activity of the company which is largely dependent on smooth supply of raw materials, further it is a a mandatory requirement for the public sector undertakings. (whether ITC available)
10. It is possible to take a view that availing ITC on above CSR activities is not restricted by law. (T/F) reason :
18. Match The following:
| Section-30
Section-31 Section-32 Section-35 Section-35CCD Section-36 |
– deduction for expenditure for scientific research
– deduction for insurance premium on stock – deduction for repairs and municipal tax – deduction for repairs and insurance – deduction for skill development project – deduction for depreciation on tangible asset |
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