ICAI Issues Framework for Social Audit Standards

The Institute of Chartered Accountants of India (ICAI) has issued a framework for social audit standards.

This Framework does not itself establish standards or provide specific requirements for the performance of area specific social audit engagements relating to specific thematic areas within social objectives such as Poverty, Climate Change, Health etc. Social audit standards (SASs)1 contain essential procedures and related guidance/ criteria, consistent with the concepts in this Framework, for the performance of such area-specific social audit engagements. The respective social audit standards may be referred for the area-specific social indicators.

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. This Framework may also be applied to any other engagement(s) conducted by a social auditor e.g. impact assessment [as required under the Companies (Corporate Social Responsibility Policy) Amendment Rules, 2021, as amended from time to time) or any other similar assignment. Any other engagement(s) conducted by other auditor of an organization e.g. statutory audit, internal audit, tax audit will not be under the scope of this Framework.

The social auditors and the responsible party may agree to apply the principles of this Framework to an engagement when there are no intended users other than the responsible party. In such situations, the social auditor’s report includes a statement restricting the use of the report to the responsible party.

This Framework is focused on providing guidance to social auditor for conducting an assessment of the social impact that the project/program has created in the field. It does not cover any elements of a financial audit or review, which may be covered by relevant auditing/review standards.

Social audit engagements involve three separate parties: a social auditor, a responsible party and intended users. The responsible party and the intended users may be from different entities or the same entity.

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