The correct answer is: B. Social
A social audit is an evaluation of a company’s performance against planned goals in the areas of social responsibilities. It is a process of assessing a company’s social impact, including its impact on the environment, its employees, and the communities in which it operates.
Social audits can be conducted by internal or external auditors. Internal auditors are employees of the company being audited, while external auditors are independent professionals who are not affiliated with the company.
Social audits can be voluntary or mandatory. Voluntary audits are conducted at the discretion of the company, while mandatory audits are required by law or regulation.
The purpose of a social audit is to identify and assess the company’s social impacts, and to make recommendations for improvement. Social audits can help companies to:
- Identify and manage their social risks
- Improve their social performance
- Gain a competitive advantage
- Build trust with stakeholders
Social audits can be conducted using a variety of methods, including interviews, surveys, document reviews, and site visits. The results of a social audit are typically presented in a report that includes recommendations for improvement.
Social audits are an important tool for companies that are committed to social responsibility. They can help companies to identify and manage their social risks, improve their social performance, and gain a competitive advantage.
The other options are incorrect because:
- A cost audit is an evaluation of a company’s costs.
- An interim audit is an audit that is conducted between regular audits.
- A final audit is an audit that is conducted at the end of a financial period.