Question 1

​Which of the following is true of risk response cost?

Accepted Answer

Risk response cost refers to the incremental cost incurred by the company to implement a given risk response. It is used to estimate the net benefit of each risk response alternative and includes both direct and indirect costs. While it may not always be easy to accurately estimate the cost, it is still an important factor to consider in making informed decisions about risk management.

Question 2

​Which of the following is true of sustainability assurance?

Accepted Answer

Sustainability assurance is an external verification of a company's sustainability report by an independent party, which confirms the accuracy of the report's content.

Answer: B
 Traditionally, most organizations have found it much easier to estimate the costs of corporate sustainability reporting (CSR) assurance than the benefits.

Answer: None
 Option C is incorrect because the cost of CSR assurance cannot always be negligible. Option D is incorrect because the lack of a generally accepted set of reporting standards for preparing corporate sustainability reports can lead to higher assurance costs.

Question 3

​Which of the following is true of stakeholder engagement?

Accepted Answer

Stakeholder engagement encompasses a wide range of interactions, from informal, spontaneous conversations to formal, structured meetings, reflecting its adaptability and the diverse needs and preferences of stakeholders.

Question 4

​Global Reporting Initiative and the Sustainability Accounting Standards Board each have published reporting standards that:

Accepted Answer

Both the Global Reporting Initiative (GRI) and the Sustainability Accounting Standards Board (SASB) have published reporting standards that are often used by organizations when preparing their corporate sustainability reports (CSRs). However, they are not mandatory and organizations can choose to use other reporting standards or frameworks that may better suit their specific needs.

Question 5

​Which of the following is true of performance measurement?

Accepted Answer

Performance measurement is a key aspect of the business sustainability cycle and involves tracking and assessing an organization's progress towards sustainability goals. By measuring performance, organizations can identify areas where they need to improve and take action to enhance their sustainability efforts. This can lead to better environmental, social, and financial outcomes, which in turn can contribute to long-term business success.

Question 6

​_____ immediately follows performance measurement within the business sustainability cycle.

Accepted Answer

Sustainability reporting is the next step after performance measurement in the business sustainability cycle. Sustainability reporting involves disclosing information concerning a company's social, environmental, and economic performance to its stakeholders.

Question 7

​According to the KPMG's Survey of Corporate Responsibility Reporting (2015), _____ percent of the world's largest organizations issue a sustainability report.

Accepted Answer

According to KPMG's Survey of Corporate Responsibility Reporting (2015), 92% of the world's largest organizations issue a sustainability report.

Question 8

​The residual risk associated with a particular risk response alternative equals the:

Accepted Answer

The residual risk is the risk that remains after a risk response has been implemented. The residual risk associated with a particular risk response alternative equals the likelihood that remains after the alternative is implemented multiplied by the impact that remains after the alternative is implemented. This means that the residual risk is the product of the likelihood and impact of the risk that still exists after a risk response has been implemented.

Question 9

​Which of the following is the most significant benefit of having a corporate sustainability report (CSR) assured by an independent third party?

Accepted Answer

Having a CSR assured by an independent third party increases the credibility and trustworthiness of the report, which can help external stakeholders, such as shareholders, customers, and investors, to trust the content more easily. This, in turn, can improve the organization's reputation and help build stronger relationships with stakeholders. The other options (A, B, and D) are incorrect because they either do not accurately reflect the benefits of CSR assurance or are simply untrue.

Question 10

​Which of the following is true of integrated reporting?

Accepted Answer

Integrated reporting involves combining an organization's financial and sustainability reporting into one comprehensive report for all stakeholders, as stated in option A.

Answer: B
 There is no one-size-fits-all approach to integrated reporting, and organizations are not bound to follow any particular regulations or standards, as stated in option B.

Answer: C
 While some countries and industries require independent verification of integrated reporting, this is not the case in most situations, as stated in option C.

Answer: D
 This statement is false. Integrated reporting did not exist in the early 1910s and has only become a popular concept in recent years.

Question 11

​A company has recently taken a fire insurance policy on a warehouse facility.Which of the following risk response alternatives is represented by this?

Accepted Answer

By taking out a fire insurance policy, the company is choosing to reduce the risk of financial loss in the event of a fire. They are not avoiding the risk altogether (B) or retaining the full risk without any mitigation (D), but rather transferring some of the risk through insurance. Accepting the risk (A) would mean not taking any action to mitigate or transfer the risk.

Question 12

​Which of the following is true of traditional financial reporting?

Accepted Answer

Traditional financial reporting must adhere to generally accepted accounting principles (GAAP) to ensure consistency and comparability across companies. GAAP provides a set of guidelines and standards that companies must follow when preparing their financial reports.

Answer: C
 Traditional financial reporting does not require that the report contents be verified by an independent third party. However, auditors are commonly hired by companies to conduct an independent audit of their financial statements and ensure their accuracy and compliance with GAAP.

Answer: D
 This statement is false. Traditional financial reporting and corporate sustainability reporting are two separate concepts. Traditional financial reporting focuses on reporting a company's financial performance, while sustainability reporting focuses on reporting a company's environmental, social, and governance (ESG) performance.

Question 13

​Management accountants play an important role in:

Accepted Answer

Management accountants help managers make informed decisions by providing financial data and analysis that can better connect decisions to key stakeholder concerns. They prioritize important stakeholders and provide useful information to address their concerns. They do not eliminate all risks or randomly respond to stakeholders who yell the loudest.

Question 14

​Which of the following areas in the business sustainability cycle immediately follows stakeholder engagement?

Accepted Answer

The answer of ​Which of the following areas in the...

Question 15

​Which of the following is true of corporate sustainability reporting?

Accepted Answer

Corporate sustainability reporting is voluntary in nature, meaning companies are not legally required to provide sustainability reports. However, it has become increasingly common for companies to engage in sustainability reporting as stakeholders (e.g. investors, customers, employees) are demanding more transparency around a company's social and environmental impacts.

Question 16

​Which of the following is true of business sustainability?

Accepted Answer

Business sustainability refers to the long-term viability and success of a company, taking into account not just financial performance but also the impact of the company's actions on people, the planet, and future generations. This requires considering the needs and interests of multiple stakeholders, including employees, customers, suppliers, communities, and the environment. It also involves identifying and addressing risks and opportunities related to economic, social, and environmental factors. Therefore, option A is the correct choice. Option B is incorrect because business sustainability encompasses more than just environmental sustainability. Option C is incorrect because it ignores the importance of stakeholders beyond shareholders. Option D is incorrect because although risk management is a key part of business sustainability, it is not the starting point.

Question 17

​As per PricewaterhouseCoopers' survey of 1,409 CEOs from across 83 countries, the stakeholders who had the greatest impact on an organization's strategy are:

Accepted Answer

According to the survey, customers and clients were identified as the stakeholders with the greatest impact on an organization's strategy by the majority of the CEOs surveyed.

Question 18

​The benefit associated with a particular risk response alternative equals the:

Accepted Answer

The benefit associated with a particular risk response alternative is the reduction in risk that results from implementing that alternative. This reduction in risk is calculated by subtracting the residual risk, which is the risk remaining after the response has been implemented, from the inherent risk, which is the risk before any response has been implemented. Therefore, the correct formula is Inherent Risk - Residual Risk = Benefit. The response cost is the cost of implementing the risk response, and it is not directly related to the benefit of the response alternative.

Question 19

​Which of the following is true of greenwashing?

Accepted Answer

Greenwashing is a situation in which stakeholders believe that an organization's corporate sustainability report contains environmental information that is materially biased in favor of the reporting organization. It is a deceptive practice that can harm a company's reputation over time. While it may result in short-term benefits, the long-term consequences can be significant. Avoiding optional reporting rules does not necessarily prevent greenwashing.

Question 20

​Business sustainability is valuable because:

Accepted Answer

Business sustainability helps managers make better decisions by considering the long-term impact of their actions on the environment, society, and the economy. It encourages a holistic approach to business management, which can enhance the overall performance of the organization while also addressing key stakeholder concerns. However, it does not guarantee complete elimination of risks or concerns, nor does it aim to please all stakeholders all the time.

Quiz 13: Emerging Topics in Managerial Accounting: Sustainability, Quality Cost, Lean Accounting, International Issues, Enterprise Risk Management, the Managerial Accountant in Forensicfraud Accounting

Which of the following is true of risk response cost?

Which of the following is true of sustainability assurance?

Which of the following is true of stakeholder engagement?

Global Reporting Initiative and the Sustainability Accounting Standards Board each have published reporting standards that:

Which of the following is true of performance measurement?

_____ immediately follows performance measurement within the business sustainability cycle.

According to the KPMG's Survey of Corporate Responsibility Reporting (2015) , _____ percent of the world's largest organizations issue a sustainability report.

The residual risk associated with a particular risk response alternative equals the:

Which of the following is the most significant benefit of having a corporate sustainability report (CSR) assured by an independent third party?

Which of the following is true of integrated reporting?

A company has recently taken a fire insurance policy on a warehouse facility.Which of the following risk response alternatives is represented by this?

Which of the following is true of traditional financial reporting?

Management accountants play an important role in:

Which of the following areas in the business sustainability cycle immediately follows stakeholder engagement?

Which of the following is true of corporate sustainability reporting?

Which of the following is true of business sustainability?

As per PricewaterhouseCoopers' survey of 1,409 CEOs from across 83 countries, the stakeholders who had the greatest impact on an organization's strategy are:

The benefit associated with a particular risk response alternative equals the:

Which of the following is true of greenwashing?

Business sustainability is valuable because: