Introduction:

Corporate Social Responsibility (CSR) involves companies taking responsibility for their impact on

society and the environment beyond statutory obligations.

Nature of CSR Reporting:

CSR reporting is generally voluntary, although some regions and industries may have mandatory

requirements.

Options Analysis:

Option A: Many CSR areas may overlap with the audit universe or annual audit plan, but not all.

Option B: Investors may increasingly rely on CSR information, particularly in ESG (Environmental,

Social, Governance) investing.

Option C: CSR reporting is largely voluntary, unlike financial or regulatory reporting which is often

mandatory.

Option D: Operating management typically plays a significant role in CSR efforts and reporting.

Conclusion:

The correct statement regarding CSR is that it is largely voluntary, unlike many other areas of

reporting responsibilities that impact stakeholders.

Reference:

Internal Audit Standards and Practice Guides