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HOW TO BECOME A SOCIAL AUDITOR ?

Becoming a social auditor typically requires a combination of education, training, and practical experience in the field of social responsibility and sustainability. Here are some steps you can take to become a social auditor:

  1. Education: Start by earning a degree in a related field such as social responsibility, sustainability, or environmental science. This will provide you with a foundation of knowledge on the principles and practices of social auditing.
  2. Training: Look for specialized training programs or certifications that focus specifically on social auditing. These programs can provide you with the necessary skills and knowledge to conduct audits, interpret data, and communicate findings effectively.
  3. Gain practical experience: Look for opportunities to gain practical experience in social auditing by volunteering, interning, or working in the field. You can also seek out mentorship or guidance from experienced social auditors.
  4. Develop communication skills: Strong communication skills are essential for social auditors as they must be able to effectively communicate their findings to a wide range of stakeholders, including executives, employees, and the public.
  5. Stay up-to-date: Keep up with the latest developments in social auditing, sustainability, and corporate social responsibility by reading industry publications, attending conferences, and networking with other professionals in the field.

By taking these steps, you can develop the knowledge, skills, and practical experience necessary to become a successful social auditor.

To become a social auditor, you can follow these general steps:

  1. Develop a strong understanding of social auditing: Start by researching and reading about social auditing, its principles, and its importance. You can find a lot of information online or through professional associations and organizations.
  2. Gain relevant education and experience: Many social auditors have a background in fields such as business, human rights, social responsibility, or auditing. Obtaining a degree in a relevant field can help you build a strong foundation of knowledge, and relevant work experience will make you more competitive in the job market.
  3. Obtain relevant certifications: Many organizations offer certifications for social auditing, which can demonstrate your expertise and help you stand out to potential employers. Examples include the Social Accountability International (SAI) certification or the International Register of Certificated Auditors (IRCA) certification.
  4. Develop strong communication and interpersonal skills: Social auditors need to be able to communicate effectively with various stakeholders, including workers, managers, and other auditors. Strong communication and interpersonal skills are crucial to success in this field.
  5. Network and seek out opportunities: Networking with other professionals in the field can help you stay up-to-date on industry developments and find job opportunities. You can also seek out internships or entry-level positions in organizations that conduct social audits to gain experience and build your resume.
  6. Stay up-to-date on industry developments: The field of social auditing is constantly evolving, so it’s important to stay informed about new trends, best practices, and changes in regulations or standards.

Overall, becoming a social auditor requires a combination of education, experience, certifications, and strong communication and interpersonal skills. By following these steps and staying committed to your professional development, you can build a successful career in this field.

About NISM Series-XXIII: Social Auditors Certification Examination

The examination aims to create a pool of social auditors who would assess the impact of social interventions of various social enterprises who raise funds through the Social Stock Exchange platform.

Examination Objectives

On successful completion of the examination the candidate should:

  • Know the basics of social auditing, Code of conduct of Social Auditors.
  • Understand the general concepts related to social stock exchange, social audit and social impact assessment.
  • Know the Social Impact Reporting disclosures and regulations.

Assessment Structure

The examination consists of 85 multiple-choice and 3 case-based/caselet questions (each case having 5 questions) totaling to 100 marks. The assessment structure is as follows:

Multiple Choice Questions [85 questions of 1 mark each] 85 x 1 = 85  
Case-based Questions[3 cases (each cases with 5 questions of 1 mark each] 3 x 5 x 1 = 15  

The examination should be completed in 2 hours. The passing score for the examination is 60. There shall be negative marking of 25 percent of the marks assigned to a question.

Test Details

Name of Module: NISM Series XXIII: Social Auditors Certification Examination

~ 85 multiple-choice and 3 case-based/caselet questions (each case having 5 questions) totaling to 100 marks.

* Negative marking – 25% of the marks assigned to the question.

+ Payment Gateway Charges extra.

# Passing Certificate will be issued only to those candidates who have furnished/ updated their Income Tax Permanent Account Number (PAN) in their registration details.

  • 1770+
  • 120
  • 100~
  • 100
  • 60*
  • 3#

Curriculum-Social Auditors

I. INTRODUCTION TO SOCIAL SECTOR AND INDIAN FINANCIAL MARKETS
Section – I Social Sector in India

A. Overview of Social Sector in Indian Economy
B. Sustainable Development Goals (SDGs)
C. Concept of Social Enterprises (SE)
D. Taxonomy related to Social Enterprises
E. Social Intervention
F. International standards applicable for social development
G. Challenges of comparability faced by social sector organisations
H. Social Sector Landscape in India
I. Social Sector Inequities

Section – II Indian Financial Markets
A. Indian Financial Markets
B. Type of Securities
Annexure 1:List of areas and subareas for taxonomic classification of social objectives
Annexure 2:Developmental Initiatives

II. INTRODUCTION TO TRADING, CLEARING, SETTLEMENT AND RISK MANAGEMENT ON STOCK EXCHANGES
A. Trading Mechanism
B. Clearing, Settlement and Risk management

III. SOCIAL STOCK EXCHANGE: INTRODUCTION, FUNDING STRUCTURES AND INSTRUMENTS
A. Concept of Social Stock Exchange
B. Stakeholders of Social Stock Exchange
C. Funding Structures

IV. REGISTRATION AND LISTING ON SOCIAL STOCK EXCHANGES
A. Registration process on Social Stock Exchanges
B. Rights, Obligations and Disclosures Document
C. Key Listing Guidelines
Annexure 3: Outline for the Offer document requirements for Zero Coupon Zero Principal Instruments

V. SOCIAL AUDIT AND SOCIAL AUDITORS
A. Evolution of Social Audit
B. Principles of auditing
C. Code of Conduct for Social Auditors
D. Certification requirements for Social Auditors
E. Competencies and Skills required for Social Auditor
F. Empanelment of Social Auditors with SROs
G. Scope of Work for Social Auditors
H. Social Audit Process
I. Accounting System and Internal Control
J. Social audit report
K. Challenges related to Social Auditing

VI. SOCIAL AUDIT STANDARD FRAMEWORK
A. Social Audit Standard
B. Social Audit Standard (SAS) Framework
C. Social Audit Engagement
D. Social Audit Scope
E. Stakeholders
F. Social Audit Engagement Acceptance
G. Communication with those charged with governance
H. Social Audit Quality Control for Social Auditor/ Audit firm
I. Social Audit Planning
J. Understanding the Entity and its environment
K. Social Auditor’s Responses to Assessed Risk
L. Field level research agency and/or subject matter experts
M. Use of Technology in Social Audit

VII. SOCIAL IMPACT ASSESSMENT
A. Social Impact Assessment
B. Different organisational models for structuring evaluation
C. Theory of Change
D. Guidelines and Tools for impact assessment
E. Impact Reporting
F. Issues or Challenges in conducting SIA

VIII. SOCIAL IMPACT ASSESSMENT (CASE STUDIES)
A. Case Study on Draft Social Audit Standard (SAS) 500: Ensuring environmental sustainability, addressing climate change including mitigation and adaptation, forest and wildlife conservation
B. Case Study on Draft Social Audit Standard (SAS) 200: Promoting health care including mental healthcare, sanitation and making available safe drinking water
C. Case Study on Draft Social Audit Standard (SAS) 400: Promoting gender equality, empowerment of women and LGBTQIA+ communities
D. Case Study on Draft Social Audit Standard (SAS) 1300: Promotion of Financial Inclusion
E. Case study on Affordable Housing on Draft Social Audit Standard (SAS) 1100: Slum area development, affordable housing and other interventions to build sustainable and resilient cities

IX. DISCLOSURE NORMS, REPORTING REQUIREMENTS BY SOCIAL AUDITORS AND PENALTIES
A. Disclosures as per SEBI ICDR Regulations
B. Disclosures norms under SEBI LODR Regulations
C. Penalties as per the SEBI Act, 1992
D. Different books to be maintained as per SC(R)R, 1957
Annexure 4:Guidance notes for listed/registered NPOs on disclosures of general, governance financial aspects
Annexure 5: Guidance notes for all Social Enterprises (SEs) on AIR

X. TAXATION
A. Securities Transaction Tax
B. Capital Gains Tax
C. Deduction under section 80G of Income Tax Act
D. Exemptions for Social Enterprises

XI. KEY REGULATIONS
A. Securities Contracts Regulation Act (SCRA 1956)
B. SEBI Act 1992
C. Depositories Act, 1996
D.SEBI (Stock Broker) Regulation, 1992
E.SEBI (Prohibition of Insider Trading) Regulations, 2015
F. Prevention of Money-Laundering Act, 2002
G.SEBI Prevention of Fraudulent and Unfair Trade Practices Regulations, 2003




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