Difference between SMETA Audit 2-Pillar and 4-Pillar

2-Pillar

The first step in a two-pillar audit is to perform an examination of the firm’s internal controls and risk management procedures. The process begins with the identification of internal control deficiencies and related risks. The auditor then identifies potential control deficiencies, testing them for completeness, accuracy and effectiveness. If deficiencies are found, the auditor may recommend that controls be modified or new ones be implemented. The auditor evaluates whether adequate segregation of duties exists between functions (e.g., cash handling) or within functions (e.g., sales).

4-Pillar

The 4-Pillar Audit describes how all 4 areas are maintained by the organization, ensuring that compliance standards are met in all areas.

4-Pillar Audit Methodology – The 4-Pillar audit methodology consists of four steps: planning, performing, analysing, and recording. This type of audit is often used by companies that want to improve their internal controls over financial reporting processes.

What is SMETA Audit Social Accountability 8000?

The Social Accountability 8000 (SA8000) is a standard that sets out how companies should carry out governance, risk management, employee relations and human resources activities to help ensure that they are able to prevent, detect and mitigate risks to their business. The standard has been developed by the World Bank Group’s International Finance Corporation (IFC) and the World Bank Group’s Multilateral Development Banks (MDBs).

The SA8000 is an international standard which sets out how businesses should conduct their business in line with international best practices. The standard provides guidance on how to ensure that your business has the right systems in place to promote social accountability and transparency.

Section: SMETA reporting format

Submitted by the SMETA audit team, this document provides a summary of the findings and recommendations of the audit. The report is divided into two parts, the first being a “background information” section and the second being a “recapitulation” section.

The background information section describes the audit objectives, scope and approach, as well as any relevant external factors that impact on the SEDEX audit. This section also explains how these factors might impact upon each of the four pillars in SMETA.

The recapitulation section summarizes all findings and recommendations from each pillar in SMETA, including those related to regulatory compliance (compliance assessment) and internal controls (control assessment), as well as any significant human resource issues identified during the audit.

Takeaway: SMETA has two core pillars, the first one being Ethical Audit and the second being Environmental Audit. The difference between 2 Pillar and 4 Pillar lies in Ethical Audit.

Nowadays, sustainability has become a buzzword and there are many organizations that are trying to implement it. SMETA is one of those organizations that have been working towards sustainability. They have two core pillars, the first one being Ethical Audit and the second being Environmental Audit. The difference between 2 Pillar and 4 Pillar lies in Ethical Audit.

2 Pillar has four pillars: Social Accountability, Environmental Sustainability, Economic Development and Efficient Working Conditions. This means that they are focusing on all areas of society before focusing on their business and how they can improve their business.

4 Pillar has only three pillars: Social Accountability, Environmental Sustainability and Economic Development. This means that they are focusing on their business before focusing on how they can improve the lives of citizens in their community or country.