SSA Midterms PDF

MULTIPLE CHOICE 7. It is an intergovernmental organization aiming to maintain international peace and security, develop 1. They refer to companies with existing registration friendly relations among nations, achieve st...

MULTIPLE CHOICE 7. It is an intergovernmental organization aiming to maintain international peace and security, develop 1. They refer to companies with existing registration friendly relations among nations, achieve statements filed with the Commission and whose international cooperation, and be a center for shares harmonizing the actions of nations. It is the world's are listed and traded in an exchange. largest and most familiar international organization. A. Large Entities A. International Security Commission B. Publicly Listed Companies B. International Peace and Security Association C. Private Entities C. World United Organization D. Small and Medium Entities D. United Nation 2. Which of the following dimension of sustainability 8. These are an essential aspect of the performance enables business organizations to sustainability reporting processes. In essence, this assess the impact of assessment means the identification of the most their operation on the environment and reflects the significant sustainability issues for reporting issues company's efforts in leaving a better environment - ideally from the perspective of both the for the next organization and its stakeholders. generations? A. Overall assessment A. environmental B. Significant assessment B. economic C. Materiality assessment C. social D. Balance assessment D. cultural 9. Which of the following is false? 3. MDGs stand for A. The reporting template (Annex A of the A. Maximum Development Goals Guidelines) shall be submitted together with the B.Millenium Development Goals company's Annual Reports C. Medieval Development Goals (SEC Form 17-A). The first report shall be attached D. Modern Development Goals to the 2019 Annual Report to be submitted in 2020. B. Non-attachment of the Sustainability Report to 4. They relate to how the company manages the the Annual Report shall be subject to the penalty natural resources it needs for its business, as well for "Incomplete as how it minimizes its negative impacts to the Annual Report" provided under SEC Memorandum environment, including biodiversity. Circular No. 6, Series of 2005 (Consolidated Scale A. Social disclosures of Fines). B. Cultural disclosures C. The Guidelines shall be adopted on a "comply or C.Environmental disclosures explain" approach for the first three years upon D. Economic disclosures implementation. By "comply or explain", it means that companies would be required to attach the 5. Which of the following is the quality which template to their Annual Reports, but they can Reporting Principles for defining report quality provide explanations for items where they still no guide choices on ensuring the quality of information available in a sustainability report, including its proper data on. presentation? D.For companies who already have sustainability A. Materiality reports in accordance with internationally B. Completeness recognized frameworks and C. Balance standards, their reports shall be not considered as D. All of these. their compliance with the reporting template. 6. It is the agency of the Governmental of the 10. It refers to the effect an organization has on the Philippines responsible for regulating the securities economy, the environment, and/or society, which in industry in the turn can indicate its contribution (positive or Philippines. negative) to sustainable development. A. Securities and Exchange Commission A Impact C. Securities and Industry Commission B. Threshold B. Insurance Commission C. Materiality D. Philippines Securities Commission D. Significance 11. The following dimensions of sustainability 16. The Sustainable Development Goals (SDGs), performance reflects the transformation of social otherwise known as the ________, are a set of goals into practices that benefit an organization's objectives within a universal agreement to end stakeholders and is measured through the poverty, protect all that makes the planet habitable, principles, actions, and corrective initiatives and ensure that all people enjoy peace and implemented? prosperity, now and in the future. A, economical A. Global Goals B. environmental B. Overall Goals C. social C. Universal Goals D. cultural D. Sustainable Goals 12. When reporting on the management approach 17. Disclosures should also be accompanied by a for a material topic, the reporting organization ________ which describes the management of should ideally material sustainability Issues. This Includes include a description of which of the following explaining how the organization (1) avoids, components? mitigates, or remediates negative impacts A. Resources to the economy, environment, and society, and B. Responsibilities enhances positive ones, and (2) addresses Its C. Policies climate-related issues, D. All of these A. balance approach B.management approach 13. The sustainability Reporting Guidelines for C. economic approach Publicly Listed Companies (PLCs) was crafted with D. sustainability approach the following objectives, except: 18. A topic may be considered material If It falls into A. Make sustainability reporting relevant and value any of the following except adding for Philippine PLCs. A. There is a trend that points to a future where this B. Help PLCs to identify, evaluate, and manage topic will become material to you. their material Economic, Environmental and Social B. Your key business activities impact the topic, (EES) risks and opportunities. C. It is a key capital/risk/opportunity that impacts C. Help PLCs to assess and manage their value creation. non-financial performance across EES aspects of D. None of the above. their organization to optimize business operations, improve competitiveness, and long-term success. 19. The management approach components D. All of the above referring to the intent of the organization to manage the impacts related to the topic. 14. This Management Approach Components A. Policies highlighted the following: (1) purpose of the B. Commitments mechanism; (Il) activities covered by the C.Goals and targets mechanism; (Ill) how the mechanism Is managed; D. Grievance mechanisms (Iv) process to address and resolve grievances, Including how decisions are 20. Grievance mechanisms highlights the following; made; and (v) effectiveness criteria used, except A. Policles A. purpose of mechanism B. Grievance mechanisms B. how the mechanism is managed C. Goals and targets C. activities covered by the mechanism D, Specific Actions D. remediate the negative impacts relative to chosen topic 15. This Management Approach Component intents of the organization to manage the Impacts related to the topic (e.g., for regulatory compliance, compliance with International standards), A. Policies B. Commitment C. Goals and targets D. Grievance mechanisms 21. ____________ complement internal processes, 27. The following are external factors driving the such as internal audit or stakeholder engagement, demand for sustainability assurance except, what? which are designed to improved business A. External stakeholders demand for credible sustainability and enhance the trust of external sustainability reports stakeholders; or enhance the credibility of B. Organization's size, listing status and industry information with those who use it to make economic membership (influence of industry membership and other decisions. amongst larger reporters À. Sustainability assurance decreasing) B. Strategic assurance C. Financial indicators (mixed results) C. Financial assurance D. Media pressure D. Internal.audit 28. 22. Which of the following statements is true? Statement I: Characteristics of country-of-origin A. One main characteristic of a sustainability level drivers (mixed results) is an external factor assurance engagement is independence of the driving the demand for sustainability assurance. auditors is not really important. Statement II: Viable substitute available is an B. Considering that assurance on sustainability external factor driving the demand for sustainability reports is mandatory, companies therefore often opt assurance for limited assurance. A. First statement is TRUE: Second statement is C.It is possible to have limited and reasonable FALSE. assurance in one engagement in sustainability B. Both statements are TRUE reporting. C. First statement is FALSE; Second statement is D. When reasonable assurance is provided, the TRUE. engagement is referred to as "review." D. Both statements are FALSE. 23. SAPs stand for 29. Which of the following statements is/are TRUE A. System Application Programs about ASAP? C. Strategic Assurance Programs A. NASAPs have expertise in knowledge of BSustainability Assurance Providers sustainability. D. Sustainability Audit Programs B. Some NASAPs (especially global certification 24. The demand for sustainability assurance firms) also. have size advantages similar to the big services are being driven by 4 ASAPs A. Internal factors only. C. External stakeholders prefer NASAs because C. Internal and external factors. they value subject matter expertise and because B. External factors only. they do not perceive SAPs being independent. D. Neither internal nor external factors. D. None of the above. 25. _______ is a special form of non-financial 30. Which of the following is an example of assurance. reasonable assurance engagement? A. Sustainability assurance A Financial Statement Audit B. Strategic assurance C. Financial Statement Analysis C. Financial assurance B. Financial Statement Review D. Internal assurance D. Projected Financial Statement 26. Which of the following is/are factors inhibiting 31. Which of the following is/are internal factors the demand for sustainability assurance? driving the demand for sustainability assurance? A. Viable substitute available A. Financial Indicators (mixed results) B. Sustainability assurance too onerous (Both A and B C. Lack of external regulatory pressure B. Value addition from sustalnability assurance D.All of the above. D. Neither A nor B. 32. The ________ is a report prepared by a company to measure, disclose and report on the D. Projected Financial Statement company's efforts to measure, disclose and report on how it is accountable to all stakeholders in the 38. ASAP stand for company's work for sustainable development. A. Auditing Sustainability Assurance Providers A. Audit Report B. Accounting Sustainability Assurance Providers B.Sustalnability Report C. Assurance Sustainability Assurance Providers C. Assurance Report D. Assurance Sustainability Audit Providers D. Strategic Report 39. Which of the following statements is false? 33. What are the main characteristics of a A. As with financial auditing, the independence of sustainability assurance engagement? the practitioners performing the assurance A. The engagement may have a hybrid form procedures should be guaranteed, regarding the level of assurance provided B. Studies have noted that the Inclusion of B. The scope of the engagement is determined sustainability assurance statements alongside individually published sustainability reports C. The audit tears should be multidisciplinary positively Influence stakeholders' perceptions of D. All of the above sustainability report credibility, C. The value of sustainability assurance depends 34. Which of the following statements Is/are TRUE on the nature of Information being assured. about NASAP? D. External drivers of sustainability assurance A. NASAPs are bound by any standard however include financial indicators and the potential value most prefer AA1000AS addition (perceived or real) nature of sustainability B. NASAPs comfortable in providing assurance assurance. over soft qualitative data C. NASAs through their experience with financial 40. An engagement In which a practitioner alms to audits have a better understanding of obtain sufficient appropriate evidence in order to independence express a conclusion designed to enhance the D. None of the above degree of confidence of the intended users other than the responsible party about the subject 35. What is the level of assurance provided to matter information, users of sustainability report audit? A. Sustainability assurance A. Reasonable Assurance B. Audit B. Limited Assurance C. Assurance C. Reasonable Assurance and/or Limited D. Strategic Audit Assurance D, Non or No Assurance 41. An assurance engagement in which a party other than the practitioner measures or evaluates 36. the underlying subject matter against the criteria, Statement I: Characteristics of country-of-orlgin A. Attestation Engagement level drivers (mixed results) is an external factor B. Sustainability Engagement driving the demand for sustainability assurance. C, Direct Engagement Statement II: Viable substitute available is Internal D. Assertion-Based Engagement factor driving the demand for sustainability assurance. 42. An assurance engagement in which the A. First statement Is TRUE; Second statement Is practitioner measures or evaluates the underlying FALSE subject matter against the applicable criteria and B. First statement is FALSE; Second statement Is the practitioner presents the resulting subject TRUE matter information as part of, or accompanying, the C. Both statements are TRUE assurance report, D. Both statements are FALSE A. Attestation Engagement B, Sustainability Engagement 37. Example of limited assurance engagement is. C. Direct Engagement A. Financial Statement Audit D. Assertion-Based Engagement B. Financial Statement Review C. Financial Statement Analysis 43. What is/are the key characteristics(s) of suitable 47. Which of the following is TRUE about criteria? REASONABLE ASSURANCE? A.Relevance A. Example of reasonable assurance is the B. Objectivity financial statement review. C. Accuracy B. A reasonable assurance engagement provides a D. All of the above, moderate level of assurance but will most likely require more time and involve greater costs in 44, Which of the following is TRUE about a substantiating the sustainability report disclosures practitioner's expert? and gathering evidence to support the A. Evaluate whether the practitioner's expert has practitioner's conclusion. the necessary competence, capabilities and C. A limited assurance engagement involves a objectivity for the practitioner's purposes. In the lower level of assurance, and will likely involve less case of a practitioner's external expert, the time and cost, as the evaluation of objectivity shall include inquiry procedures are primarily limited to enquiries and regarding, interests and relationships that may analysis. create a threat to that expert's objectivity, D. It is an assurance engagement in which the B. Obtain a sufficient understanding of the field of practitioner reduces engagement risk to an expertise of the practitioner's expert. acceptably low level; in the C. Obtain sufficient appropriate evidence that the circumstances of the engagement as the basis for practitioner's expert's work is adequate for the the practitioner's conclusion. purposes of the assurance engagement. 48. When, in the practitioner's professional D. All of the above, judgment, a scope limitation exists, and the effect of the matter could be material, the practitioner 45. In the case of a limited assurance engagement, should express what possible kind of conclusion? that, based on the procedures performed and A. Unqualified evidence obtained, no matter(s) has come to the C. Disclaimer attention of the practitioner that causes the B. Qualified practitioner to believe that subject matter D. Either B or C. "information is not prepared, in all material respects, in accordance with the applicable criteria, 49. Which of the following is/are modified what kind of conclusion or opinion that the opinion/conclusion? practitioner should express? A. B, C and D A. Unqualified B. Disclaimer B. Qualified C. Qualified C. Disclaimer D. Adverse D. Adverse 50. __________deals with assurance engagements 46. The _______ are benchmarks used to evaluate other than audits or reviews of historical financial or measure the subject underlying matter. In a information, sustainability report engagement, this is the which are dealt with in international Standards on applicable sustainability reporting framework. If Auditing and International Standards on Review suitable criteria cannot be Identified or agreed upon Engagements, with the client, then it may not be appropriate to respectively. undertake the engagement. A. International Standard on Assurance A. Suitable Criteria Engagements (ISAE) 4410 B. Criteria B. International Standard on Assurance C. Complete Criteria Engagements (ISAE) 3300 D. Standards E. international Standard on Assurance Engagements (ISAE) 3000 D. International Standard on Assurance Engagements (ISAE) 4400 51. 56. Which of the following statements is FALSE? Statement I: The assurance report shall be in A. In a reasonable assurance engagement, the writing. conclusion shall be expressed in a positive form. Statement Il: The assurance report may be in B. In a limited assurance engagement, the writing. conclusion shall be expressed in a form that A. Statement I is true; Statement Il is false. conveys whether, based on the procedures B. Statement I is false; Statement Il is true. performed and evidence obtained; a matter(s) has C. Both statements are true. come to the practitioner's attention to cause the D. Both statements are false. practitioner to believe that subject matter information is materially misstated. 52. The assurance report shall be dated when? C. In a limited assurance arrangement, the A. After the date of the last field work. conclusion shall be expressed in a negative form. B. Earlier than the date on which the practitioner D. In combining the reasonable and limited has obtained the evidence on which the assurance, the conclusion shall be expressed in a practitioner's conclusion is based. neutral form. C. Not earlier than the date on which the practitioner has obtained the evidence on which the 57. Which of the following is TRUE about a practitioner's conclusion is based. practitioner's expert? D. After the date on which the practitioner has A. Practitioner evaluates the professional obtained the evidence on which the practitioner's competence, including experience (and relevance conclusion is based. of that experience), and objectivity of the expert. B. Practitioner evaluates the relevance, 53. Key areas to cover before starting the completeness, and accuracy of that source data if engagement include which of the following? that expert's work involves the use of source data A. Ethics and independence that is significant to that expert's work. B. Competence C. Practitioner evaluates the relevance and C. Responsible Party reasonableness of that expert's findings or D. All of the above conclusions in relation to the circumstances of the assurance engagement and the assurance 54. Which of the following is FALSE about practitioner's conclusion, and their consistency with REASONABLE ASSURANCE? other evidence. A. Example of limited assurance is the financial D. All of the above. statement review. B. A reasonable assurance engagement provides a 58. _________ are required for reasonably moderate level of assurance but will most likely consistent measurement or evaluation of an require more time and involve greater costs in underlying subject matter within the context of substantiating the sustainability report disclosures professional judgment. and gathering evidence to support the practitioner's A. Suitable Criteria conclusion. B. Complete Criteria C. A limited assurance engagement involves a C. Criteria lower level of assurance; and will likely involve less D. Standards time and cost, as the procedures are primarily limited to enquiries and analysis. 59. Which of the following is a responsible party in D. It is an assurance engagement in which the an assurance engagement? practitioner reduces engagement risk to an A. Suppliers or customers acceptably low level in the circumstances of the B. Practitioner/External Auditor engagement as the basis for the practitioner's C. Shareholders conclusion. D. Engaging party 55. What is the level of assurance provided to 60. Which of the following is not the key users of sustainability report audit? characteristics(s) of suitable criteria? A.Unqualified A. Neutrality B. Disclaimer B. Objectivity C. Qualified C. Accuracy D. Adverse D. Stakeholder inclusiveness  True or False 12. The main difference between ISAE 3000 and AA1000AS is that the former focuses on the quality 1. The MDGs 17 goals were supported by à total of of reporting processes while the latter focuses on 169 individual targets, while the SGDs & goals assurance procedures. were supported with a total of 21 individual targets. 13. In a limited assurance engagement, analytical 2. The new SDGs are more universal and apply to procedures may be designed to support all countries with high, middle, and low income, expectations regarding the direction of trends, whereas the MDGs were intended for action in relationships and ratios. While in a reasonable developing countries only. assurance engagement, analytical procedures performed in response to the engagement risk 3. Materiality assessment can prove highly involve developing expectations that are challenging because materiality considerations sufficiently precise to identify material related to sustainability disclosures similar to how misstatements. the concept is used in financial accounting and reporting 14. Auditors cannot be responsible for drawing up the report if they are also providing assurance on 4. Economic Disclosures include disclosure on that report. issues related to human rights, access to and quality of product and services, responsible 15. Sustainability reporting, unlike sustainability business practices in marketing, customer privacy assurance, is a relatively new practice. and data security. 16. Identification is one of the 3-step process 5. MDGs emphasized sending aid from developed GRI-based reporting which requires examination of countries to developing countries, while SDGs identified topics in terms of significance to emphasize subjective initiative and responsibility of stakeholders and significance to the organization. all parties. The filter applied here is an assessment of the topic that are material, thus deciding the level and detail 6. SDG 13 aims to promote urgent action to combat of coverage to be afforded. climate change and its impacts, 17. Prioritization is one of the 3-step process 7. MDGs is also known as new Goals. GRI-based reporting which involves creating a shortlist of relevant topics for inclusion in the 8. MDGs emphasized sending aid from developed sustainability report. The "filter" applied is that of countries to developing countries, while SDGs "sustainability context" which requires consideration emphasize subjective initiative and responsibility of of the organization's actual impact on sustainability. all parties. 18. Validation is one of the 3-step process 9. SDGs call on people who live in extreme poverty GRI-based reporting which is directed at ensuring in developing countries to not only survive, but also that the report provides a reasonable and balanced live with dignity. representation of the organization's sustainability performance. The criteria applied in the validation 10. The core purpose of SDGs is that in the step are that of "completeness", considering the process of achieving poverty alleviation and range of topics, range of entities and selection of promoting economic information. development, people should not survive at the cost of damaging the ecological environment and must 19. If suitable criteria cannot be identified or agreed adhere to and implement the concept of upon with the client, then it is still appropriate to sustainable development. undertake the engagement as long as both practitioner and the client affixed their signatures in 11. When limited assurance is provided, the the engagement letter. engagement is referred to as a review. 20. Some of the disclosures in sustainability reports involve expert knowledge that may require the practitioner to use the work of an expert.