How to Become a Social Auditor?
To become a Social Auditor in India, individuals must adhere to specific eligibility criteria, gain necessary experience, and complete certification requirements. Here’s a comprehensive guide on the steps to becoming a Social Auditor.
Eligibility Criteria for Social Auditors:
- Individuals:
- Required qualifications and experience.
- Successful completion of the NISM certification program.
- Registration with a recognized SRO.
- Firms/Institutions:
- Employ or partner with individuals who meet the criteria for Social Auditors.
- Maintain a minimum track record of three years in conducting social impact assessments.
- For Firms/Institutions: Firms or institutions seeking to qualify for social auditing must Employ or partner with individuals who meet the criteria for Social Auditors. Firms or institutions must have a minimum track record of three years in conducting social impact assessments.
Step-by-Step Process to Become a Social Auditor:
To practice as a Social Auditor, individuals must follow these steps and meet specific eligibility criteria:
Step -1 : Complete details requirement of Educational Qualifications and Experience
- Post-Graduate Requirement:
- Degree: Postgraduate from UGC-recognized university.
- Experience: Minimum 3 years in the development sector.
- Graduate Requirement:
- Degree: Graduate from UGC-recognized university.
- Experience: Minimum 6 years in the development sector.
- Professional Qualification: Candidate must have passed Chartered Accountant, Company Secretary, or Cost and Management Accountant. and have Valid Certificate of Practice from the any of above institute.
Note :
- Recent development indeed marks a significant milestone for Company Secretaries & CMA the broader field of social auditing. SEBI’s circular dated May 27, 2024, recognizing the Institute of Company Secretaries of India & the Institute of Cost Accountants of India as Self-Regulatory Organizations opens up new professional avenues for CS professionals, particularly those inclined towards social impact assessment.
- This move by SEBI is a forward-thinking step that not only elevates the role of Company Secretaries & CMA in the social sector but also strengthens the ecosystem of social enterprises by ensuring they are assessed by qualified professionals. It reflects a growing recognition of the importance of social impact and the need for robust mechanisms to measure and report on this impact effectively.
Step -2 : Obtain examination of Certification from NISM related to social auditor.
- Candidate initially Enroll in the relevant course of NISM i.e. Certification from National Institute of Securities Markets related to social auditor. After the completion of examination of Certification from NISM related to social auditor examination. After the Successfully pass the examination conducted by National Institute of Securities Markets. Obtain the National Institute of Securities Markets certification required for Social Auditors.
How to register & prepare the Exam Preparation for NISM-Series-XXIII: Social Auditors Certification Examination?
Guidance for Exam Preparation and Facilitation Social Auditor i.e NISM-Series-XXIII: Social Auditors Certification Examination
- Study Material for Social Auditor Certification from NISM: The study material provided by NISM is designed to be comprehensive and sufficient for exam preparation. Soft Copy of Workbook/Study Material: Upon enrollment for the examination, individuals will receive a soft copy of the workbook or study material. If the study material is not received, candidates can contact NISM at certification@nism.ac.in for assistance.
- ICAI ISAI, ICMAI SAO, and ICSI IISA offer voluntary preparatory education courses.
- These courses are intended to help members prepare effectively for the Social Auditors certification course conducted by NISM.
- The preparatory courses provide additional guidance, knowledge, and support, complementing the NISM study material. Focus on understanding key concepts, frameworks, and methodologies related to social auditing and impact assessment.
- These courses can provide deeper insights and practical knowledge that will be beneficial for the exam and your future practice as a Social Auditor.
- Create a study schedule to cover all the topics systematically. Regularly review and practice to reinforce your understanding of the material.
- Take advantage of any mock tests or practice exams available through the preparatory courses or NISM. Practicing with sample questions and exams can help build confidence and improve time management skills.
Step -3 : Registration with an Self-Regulatory Organization:
After obtaining the Certification from National Institute of Securities Markets related to social auditor, register with one of the recognized SROs: Choose an SRO:
- Institute of Social Auditors of India under ICAI i.e ISAI (ICAI): ISAI Website
- The Indian Institute of Social Auditors under ICSI i.e, IISA (ICSI): IISA Website
- Social Auditor Organisation under ICMAI i.e. SAO (ICMAI): SAO Website
Apply for registration as a Social Auditor with one of the SROs. & Fulfill any additional requirements specified by the SRO.
Social Stock Exchange (SSE)
The Social Stock Exchange (SSE) is an innovative platform introduced by SEBI in India to facilitate fundraising for social enterprises and non-profit organizations (NPOs). This platform allows these organizations to list on stock exchanges like the BSE or NSE, providing them with alternative avenues to raise capital for their social initiatives.
SEBI Amendments:
- Implemented amendments to offer Social Enterprises additional fundraising avenues.
- Defines eligibility and classification criteria for organizations to raise funds on the SSE.
- Introduces methods for fundraising and outlines obligations for listed entities.
Practice Avenues for Social Auditors – Implications & Opportunities:
The role of Social Auditors is emerging, and the demand is expected to grow as more organizations register on the Social Stock Exchange (SSE) and require social impact assessments.
By following Social Auditors registration steps, individuals can become certified Social Auditors, contributing to the transparency and effectiveness of social enterprises and NPOs listed on the Social Stock Exchange. This process ensures that Social Auditors are well-equipped to assess and report on the social impact of these organizations, thereby supporting the broader goals of social development and governance.
Concept of Social Audit Enhance governance and instill confidence in investors. Social Auditor make the Annual Impact Report for all the NPO’s & Conducted by a Social Auditor to evaluate the social impact generated by the Social Enterprise. Annual Impact Report audits the activities, interventions, programs, or projects implemented during the reporting period.
Conclusion
- The SEBI amendments and the establishment of organizations like ICMAI SAO, IISA (ICSI), ISAI (ICAI) underscore the growing importance of social impact assessment and governance in the social enterprise sector.
- After becoming certified Social Auditors, professionals can play a crucial role in ensuring the transparency, accountability, and effectiveness of social enterprises, ultimately contributing to greater social good.
- By leveraging the NISM-provided study material and the voluntary preparatory courses offered by the SROs, candidates can adequately prepare for the Social Auditor certification examination.
- This preparation ensures that aspiring Social Auditors are well-equipped with the knowledge and skills necessary to effectively assess and report on social impacts, ultimately contributing to greater transparency and accountability in the social sector.
Why Choose Us?
- We customize our audit programs to align with your unique requirements, ensuring relevant and effective assessments.
- Supported by a global team of corporate social responsibility experts, we offer unparalleled guidance and insights to enhance your social compliance performance.
- RJA ensures that our audits adhere to the highest standards of professionalism and credibility, delivering reliable and impactful results.
Important Links
First meeting of the Social Audit Advisory Body (SAAB)
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