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The CA Institute’s Central Council has approved the framework of social audit standards (SAS) and 16 such standards covering 16 thematic areas in which social enterprises can operate for the purpose of listing on the social stock exchange.
“We have approved 16 social audit standards. They will be applicable for the social enterprises that will get listed on the social stock exchange,” Debashis Mitra, President, ICAI told businessline after a two-day Council meeting.
These social audit standards cover themes such as hunger, poverty, malnutrition, inequality, healthcare, education, gender equality, environmental sustainability, etc., he added.
Mitra also said that the Central Council has approved the assurance standard SSAE 3000 that deals with Assurance Engagements on Sustainability Information.
What are social audit standards
Each SAS aims to provide the social auditor with the necessary guidance about independent assurance engagement on the impact assessment, including the audit steps and procedures that should be applied while carrying out social audit.
These standards set out the minimum requirements, including an illustrative list of key performance indicators to be followed while doing an impact assessment of the social enterprises.
It may be recalled that market regulator SEBI had mandated the Institute of Chartered Accountants of India to develop social audit standards, put up a structure to oversee social audit and how disciplinary action could be taken on erring social auditors.
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The assurance standard on sustainability related information is a “path breaking step” and will enable members of ICAI to give assurance on BRSR, SDGs and other sustainability related information.
He further said that achieving Sustainable Development Goals (SDGs) is the need of the hour and the new standards will provide the necessary impetus.
Mandatory for social auditors
Sanjeev Kumar Singhal, Chairman, Sustainability Reporting Standards Board of ICAI, said that the 16 social audit standards will be mandatory for social auditors registered with the Institute of Social Auditors of India (ISAI). These could be chartered accountants or others who are eligible to be social auditors, he added.
Singhal also said that ICAI has already completed 13 batches of certificate course on BRSR and trained about 1,000 members so that there will be sufficient number of chartered accountants to under take sustainability assurance. “ICAI will continue its efforts of capacity building,” he added.
The ISAI, newly set up self-regulatory organisation (SRO) by ICAI, held its first ever meeting in Mumbai on Wednesday.
The Securities and Exchange Board of India (SEBI) had on July 25 notified a framework for social stock exchanges so that social enterprises get an additional avenue to raise funds. The idea of a social stock exchange was mentioned by the Finance Minister Nirmala Sitharaman in her Budget speech for FY20.
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