S Ltd. was engaged in the business of providing services of tours & travels. The management of S Ltd. was very much worried, as the amount of resources used were out of proportion to the amount of services provided.
CS Professional · Secretarial Audit, Compliance Management and Due Diligence · PYQS · December 2023
S Ltd. was engaged in the business of providing services of tours & travels. The management of S Ltd. was very much worried, as the amount of resources used were out of proportion to the amount of services provided. Excessive wastes were also noticed. Advise S Ltd. about the audit that should be conducted in order to evaluate such situation. Specify the types of this audit, also explain the need of this audit.
Answer & Explanation:
Type of Audit: Environmental audit should be conducted by S Ltd. so as to evaluate with the situation stated in the given case. Environmental audit is a general term that can reflect various types of evaluations intended to identify environmental compliance and management system implementation gaps, along with related corrective actions and it has a wide variety of meanings. Environmental Audit refers to verification and assessment of environmental measures in an organization. There are generally two different types of environmental audits: compliance audits and management systems audits. These audits are intended to review the site's/ company's legal compliance status in an operational context. Compliance audits generally begin with determining the applicable compliance requirements against which the operations will be assessed. This tends to include Central Law, State Laws, permits and local laws. In some cases, it may also include requirements within legal action. Need for this Environment Audit: Business can assess the environmental impact of their operations; To ensure that the corporate decisions are not spoiling company's market for its products, destroying the source of essential supply, damaging or polluting the very infrastructure that makes usage and demand of the product grow; It highlights areas of inefficiencies in process; It highlights excessive wastes; It provides opportunity for business to decrease its wastes output and reduce the cost of waste treatment or waste disposal.
Topics: Types of Audit
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