Q1. Distinguish between Social Audit Vs.
Commercial Audit
Point of differences Social Audit
1.Meaning It’s a way of measuring,
understanding , improving and
reporting an organization’s social
and ethical performance .It helps
to narrow the gap between vision
and reality . it creates an impact
upon governance.
2.Evaluation Evaluates social performance of
business.
3. Format Social audit provides the social
balance sheet of a company .
4. Approval Qualified auditors are not
required for approval of the
report.
5.Nature Social audit has a voluntary
nature .
6.Time Social audit is done once in two
years .
7.Scope Wider scope inclusive of all social
activities .
8.Performed by Internal auditors / consultant
conduct social audit under
direction of management .
9.Standard Does not have to be prescribed
/standard format of reporting .
Commercial Audit
It examines all the commercial
activities (looking for the
products and services
themselves ,and analyzing the
resources and infrastructure
that are required to bring them
to market) of an organization
or just a particular part of
operation .
Evaluates the economic
position of business.
Commercial audit provides the
financial balance sheet of a
company .
Qualified auditors must have
approval of the report .
Commercial audit is
compulsory as per companies
act 1956.
Commercial audit is done
during the end of every
financial year .
Narrow scope involves only
financial activities .
Conducted by auditors
appointed by shareholders in
the annual general meeting .
Has to be reported in
prescribed format .