ACCA AAA ^INT Syllabus D. Audit of Historical Financial Information - Auditing Social and Environmental Matters - Notes ^{41 / 41}

Social and environmental issues

..affect the statutory audit at:

1. The planning stage (Inherent risk)

   Any environmental regulations? Any key social issues? 

   Review the results of any environmental audits undertaken by the company.

2. While doing substantive procedures (impairment/provisions)

   Provisions (for example, for site restoration, fines/compensation payments)

   Contingent liabilities (for example, in relation to pending legal action)

   Asset values (issues may impact on impairment or purchased goodwill/products)

   Capital/revenue expenditure (costs of clean-up or meeting legal standards)

   Development costs (new products)

3. Review stage (going concern).