01) Social Audit Standard
The Social Audit Framework developed by ICAI provides a social auditor guidance for conducting a social audit. The social audit framework is applicable from the date of its hosting on ICAI website. Social Audit Framework does not cover any elements of a financial audit or review, which may be covered by relevant auditing/review standards.
02) List of Social Audit Standards (SAS)
The SAS has sixteen thematic areas which is listed below
SAS 100: Eradicating hunger, poverty, malnutrition, and inequality.
SAS 300: Promoting education, employability, and livelihoods
SAS 400: Promoting gender equality, empowerment of Women and LGBTQIA+ communities
SAS 600: Protection of national heritage, art, and culture
SAS 800: Supporting incubators of social enterprises
SAS 1200: Disaster management, including relief, rehabilitation, and reconstruction activities
SAS 1300: Promotion of financial inclusion
SAS 1400: Facilitating access to land and property assets for disadvantaged communities
SAS 1600: Promoting welfare of migrants and displaced persons
03) Scope of Social Audit Standard
The Social Audit Standard should be applied while conducting a social audit. The relevant SAS thematic area should be chosen according to the activity (social project) which is being audited.
The social project may be for a social enterprise (for -profit or not-for-profit (NPO) and may also have appropriate application to other related functions of social auditors.
04) Compliance with SAS
Compliance with SAS is a mandatory requirement for social audit conducted for social enterprises listed on social stock exchange.
Social auditors should ensure that guidance available in SAS are followed while conducting social audits. If for any reason a social auditor is not able to perform a social audit in accordance with the SAS, his report should draw attention to the material departures therefrom.
Social Auditors are expected to follow SAS in the social audits commencing on or after the effective date specified in the SAS.
05)Social Audit Standard (SAS) Framework
ICAI Social Audit Standard (SAS) Framework provides guidance for the elements and objectives of a social audit performed by Social Auditors. It provides a frame of reference for:
Social Auditors when performing social audits
Responsible party, engaging party and other stakeholders who are the intended users of social audit report
SAS Framework does not itself establish standards or provide specific requirements for the performance of specific thematic area e.g., poverty, climate change, health etc.
06) Applicability of SAS Framework
Social Audit Standard Framework will be applicable from the date of its hosting on ICAI website. Reference to the ICAI Social Audit Standard Framework is mandatory while conducting social audits.
Social Audit Standard (SASs)contain guidance on performance of thematic areas for social audit engagements. The appropriate Social Audit Standard thematic area may be referred for relevant social indicators.
07) Scope of SAS Framework:
i. This Framework applies to social audit (i.e., social impact assessment of project/ program of social enterprises) to be conducted by social auditors using the principles given in SASs.
ii. This Framework may also be applied to other engagement(s) conducted by a social auditor e.g., CSR Impact Assessment [as required under the Companies (Corporate Social Responsibility Policy) Amendment Rules, 2021 or any other similar assignment.
iii. The social auditors and the reporting entity may agree to apply the principles of this Framework to an engagement when there are no intended users other than the reporting entity. In such situations, the social auditor’s report includes a statement restricting the use of the report to the reporting entity.
iv. This Framework does not cover any elements of a financial audit or review, which may be covered by relevant financial auditing/review standards.
v. Any other engagement(s) conducted by other auditors of an organization e.g., statutory audit, internal audit, tax audit will not be under the scope of this Framework.
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