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Internal audit’s role in ESG reporting

 

Conversations and focus on sustainability, typically grouped into environmental, social and governance (ESG) issues, are quickly evolving — from activist investor groups and inquisitive regulators pushing for change to governing bodies and C-suite executives struggling to understand and embrace the concept. At the forefront of this new risk area is pressure for organizations to make public commitments to sustainability and provide routine updates to ESG-related strategies, goals, and metrics that are accurate and relevant. However, ESG reporting is still immature, and there is not a lot of definitive guidance for organizations in this space. For example, there is no single standard for what should be reported.

 

 What is clear is that strong governance over ESG — as with effective governance overall — requires alignment among the principal players as outlined in The Internal Institute of Auditors (IIA) Three Lines Model. As with any risk area, internal audit should be well-positioned to support the governing body and management with objective assurance, insights, and advice on ESG matters.

 

Embarking on the ESG journey

 

Efforts to mitigate the accelerating effects of climate change and address perceived historical social inequities are two powerful issues driving change globally. These movements have enhanced awareness of how all organizations impact, influence, and interact with society and the environment.

They also have spurred organizations to better recognize and manage ESG risks (i.e., risks associated with how organizations operate in respect to their impact on the world around them). This broad risk category includes areas that are dynamic and often driven by factors that can be difficult to measure objectively.

Still, there is growing urgency for organizations to understand and manage ESG risks, particularly as investors and regulators focus on organizations producing high-quality reporting on sustainability efforts. What’s more, that pressure is being reflected increasingly in executive performance as more organizations tie incentive compensation metrics to ESG goals.

As ESG reporting becomes increasingly common, it should be treated with the same care as financial reporting. Organizations need to recognize that ESG reporting must be built on a strategically crafted system of internal controls and accurately reflect how an organization’s ESG efforts relate to each other, the organization’s finances, and value creation.

Internal audit can and should play a significant role in an organization’s ESG journey. It can add value in an advisory capacity by helping to identify and establish a functional ESG control environment. It also can offer critical assurance support by providing an independent and objective review of the effectiveness of ESG risk assessments, responses, and controls.

Source: Adapted from https://na.theiia.org/about-ia/PublicDocuments/WhitePaper-Internal-Audits-Role-in-ESG-Reporting.pdf

Based on the information provided by the text, mark the statements below as true (T) or false (F).
( ) One of the hurdles of ESG issues is that they have been restricted to a single group of experts.
( ) There has been such a great demand for publicizing government efforts towards ESG that reports have become accurate and systematized.
( ) Part of the internal auditor’s job is to be knowledgeable enough in the area of ESG so as to be able to provide solid guidance to those in charge of the administration.

The statements are, respectively:

In May 2021, a hole was found in a robotic arm aboard the International Space Station (ISS). The suspected culprit was a piece of rogue space junk. While thankfully no astronauts were injured, it has re-focussed attention on the growing problem of orbital debris.

How did we get here?

 It’s easy to forget that just seven decades ago the Moon was the only thing orbiting the Earth. On 1 January 2021 there were 6,542 satellites in orbit. Tellingly, only just over half of them were active. That’s a lot of useless metal careering around the planet at 28,000 kph — ten times faster than a bullet.

How bad is the problem?

 Very bad and getting worse. Estimates suggest there are currently half a million pieces of debris the size of a marble or larger and 100 million pieces of debris above one millimeter across. Yet only 27,000 pieces are actively tracked by the US Department of Defense.

What is Kessler syndrome?

 It’s a catastrophic chain of events in which a satellite is shattered by a piece of space junk (or a collision with another satellite) and the resulting debris destroys more satellites creating more junk and so on in a never-ending cascade. It’s a domino effect – one piece falls and then takes the rest with it – and is named after NASA scientist Donald Kessler, who outlined the dangers back in 1978.

What can we do about it?

 Better regulation of new launches would help, as right now it’s a bit of a free-for-all. There are existing regulations in place to try and mitigate the dangers, such as a 25-year de-orbit rule for missions in low-Earth orbit. However, ESA’s Space Debris Environment Report says that less than 60 per cent of those flying in low-Earth orbit currently stick to the rules.

Colin Stuart. Space Junk: Is it a disaster waiting to happen?
Internet: <www.sciencefocus.com> (adapted)

It can be concluded that in the beginning of the fourth paragraph, “It's” is the contracted form of it has

In May 2021, a hole was found in a robotic arm aboard the International Space Station (ISS). The suspected culprit was a piece of rogue space junk. While thankfully no astronauts were injured, it has re-focussed attention on the growing problem of orbital debris.

The event described in the first paragraph is an example of an effect whose risks were predicted decades ago

Here’s why we’ll never be able to build a brain in a computer

It’s easy to equate brains and computers – they’re both thinking machines, after all. But the comparison doesn’t really stand up to closer inspection, as Dr. Lisa Feldman Barrett reveals.

People often describe the brain as a computer, as if neurons are like hardware and the mind is software. But this metaphor is deeply flawed.

A computer is built from static parts, whereas your brain constantly rewires itself as you age and learn. A computer stores information in files that are retrieved exactly, but brains don’t store information in any literal sense. Your memory is a constant construction of electrical pulses and swirling chemicals, and the same remembrance can be reassembled in different ways at different times.

Brains also do something critical that computers today can’t. A computer can be trained with thousands of photographs to recognise a dandelion as a plant with green leaves and yellow petals. You, however, can look at a dandelion and understand that in different situations it belongs to different categories. A dandelion in your vegetable garden is a weed, but in a bouquet from your child it’s a delightful flower. A dandelion in a salad is food, but people also consume dandelions as herbal medicine.

In other words, your brain effortlessly categorises objects by their function, not just their physical form. Some scientists believe that this incredible ability of the brain, called ad hoc category construction, may be fundamental to the way brains work.

Also, unlike a computer, your brain isn’t a bunch of parts in an empty case. Your brain inhabits a body, a complex web of systems that include over 600 muscles in motion, internal organs, a heart that pumps 7,500 litres of blood per day, and dozens of hormones and other chemicals, all of which must be coordinated, continually, to digest food, excrete waste, provide energy and fight illness.[…]

If we want a computer that thinks, feels, sees or acts like us, it must regulate a body – or something like a body – with a complex collection of systems that it must keep in balance to continue operating, and with sensations to keep that regulation in check. Today’s computers don’t work this way, but perhaps some engineers can come up with something that’s enough like a body to provide this necessary ingredient.

For now, ‘brain as computer’ remains just a metaphor. Metaphors can be wonderful for explaining complex topics in simple terms, but they fail when people treat the metaphor as an explanation. Metaphors provide the illusion of knowledge.

(Adapted from https://www.sciencefocus.com/future-technology/can-we-build-brain-computer/ Published: 24th October, 2021, retrieved on February 9th, 2022)

The title of the text implies that the author will:

Here’s why we’ll never be able to build a brain in a computer

It’s easy to equate brains and computers – they’re both thinking machines, after all. But the comparison doesn’t really stand up to closer inspection, as Dr. Lisa Feldman Barrett reveals.

People often describe the brain as a computer, as if neurons are like hardware and the mind is software. But this metaphor is deeply flawed.

A computer is built from static parts, whereas your brain constantly rewires itself as you age and learn. A computer stores information in files that are retrieved exactly, but brains don’t store information in any literal sense. Your memory is a constant construction of electrical pulses and swirling chemicals, and the same remembrance can be reassembled in different ways at different times.

Brains also do something critical that computers today can’t. A computer can be trained with thousands of photographs to recognise a dandelion as a plant with green leaves and yellow petals. You, however, can look at a dandelion and understand that in different situations it belongs to different categories. A dandelion in your vegetable garden is a weed, but in a bouquet from your child it’s a delightful flower. A dandelion in a salad is food, but people also consume dandelions as herbal medicine.

In other words, your brain effortlessly categorises objects by their function, not just their physical form. Some scientists believe that this incredible ability of the brain, called ad hoc category construction, may be fundamental to the way brains work.

Also, unlike a computer, your brain isn’t a bunch of parts in an empty case. Your brain inhabits a body, a complex web of systems that include over 600 muscles in motion, internal organs, a heart that pumps 7,500 litres of blood per day, and dozens of hormones and other chemicals, all of which must be coordinated, continually, to digest food, excrete waste, provide energy and fight illness.[…]

If we want a computer that thinks, feels, sees or acts like us, it must regulate a body – or something like a body – with a complex collection of systems that it must keep in balance to continue operating, and with sensations to keep that regulation in check. Today’s computers don’t work this way, but perhaps some engineers can come up with something that’s enough like a body to provide this necessary ingredient.

For now, ‘brain as computer’ remains just a metaphor. Metaphors can be wonderful for explaining complex topics in simple terms, but they fail when people treat the metaphor as an explanation. Metaphors provide the illusion of knowledge.

(Adapted from https://www.sciencefocus.com/future-technology/can-we-build-brain-computer/ Published: 24th October, 2021, retrieved on February 9th, 2022)

The title of the text implies that the author will:

Here’s why we’ll never be able to build a brain in a computer


It’s easy to equate brains and computers – they’re both thinking machines, after all. But the comparison doesn’t really stand up to closer inspection, as Dr. Lisa Feldman Barrett reveals.

People often describe the brain as a computer, as if neurons are like hardware and the mind is software. But this metaphor is deeply flawed.

A computer is built from static parts, whereas your brain constantly rewires itself as you age and learn. A computer stores information in files that are retrieved exactly, but brains don’t store information in any literal sense. Your memory is a constant construction of electrical pulses and swirling chemicals, and the same remembrance can be reassembled in different ways at different times.

Brains also do something critical that computers today can’t. A computer can be trained with thousands of photographs to recognise a dandelion as a plant with green leaves and yellow petals. You, however, can look at a dandelion and understand that in different situations it belongs to different categories. A dandelion in your vegetable garden is a weed, but in a bouquet from your child it’s a delightful flower. A dandelion in a salad is food, but people also consume dandelions as herbal medicine.

In other words, your brain effortlessly categorises objects by their function, not just their physical form. Some scientists believe that this incredible ability of the brain, called ad hoc category construction, may be fundamental to the way brains work.

Also, unlike a computer, your brain isn’t a bunch of parts in an empty case. Your brain inhabits a body, a complex web of systems that include over 600 muscles in motion, internal organs, a heart that pumps 7,500 litres of blood per day, and dozens of hormones and other chemicals, all of which must be coordinated, continually, to digest food, excrete waste, provide energy and fight illness.[…]

If we want a computer that thinks, feels, sees or acts like us, it must regulate a body – or something like a body – with a complex collection of systems that it must keep in balance to continue operating, and with sensations to keep that regulation in check. Today’s computers don’t work this way, but perhaps some engineers can come up with something that’s enough like a body to provide this necessary ingredient.

For now, ‘brain as computer’ remains just a metaphor. Metaphors can be wonderful for explaining complex topics in simple terms, but they fail when people treat the metaphor as an explanation. Metaphors provide the illusion of knowledge.

(Adapted from https://www.sciencefocus.com/future-technology/can-we-build-brain-computer/ Published: 24th October, 2021, retrieved on February 9th, 2022)

“Whereas” in “A computer is built from static parts, whereas your brain constantly rewires itself as you age and learn” introduces a(n):

Brasil. Ministério da Educação. Base Nacional Comum Curricular. 2017. Adaptado.

The third paragraph

Brasil. Ministério da Educação. Base Nacional Comum Curricular. 2017. Adaptado.

According to the second paragraph and to your previous knowledge about the topic, consider the statements:

I. Teaching is an interactive and non-negotiable process.
II. The assessment is important because it provides information that supports decisions to be made regarding content, methods and objectives.
III. The assessment must be continuous and systematic.
IV. The assessment must offer a quantitative view of the knowledge built.

The correct statements are found in:

TEXT 5                                                                                                                                                                                                                                     Answer the questions from 54 to 60 according to the text 5.

 

Ukraine-Russia War: Impact on Gas, Stocks, Inflation and the US Economy
Stock prices rebounded Friday, but the invasion of Ukraine could bring about many disruptions to the US economy.

Russia's invasion of Ukraine intensified on Saturday as troops continued to march on the capital Kyiv, which has instituted a citywide curfew from 5 p.m. local time Saturday until 8 a.m. Monday. US defense officials report that Russian troops launched more than 250 missiles at Ukraine Saturday but have been slow to advance on Kyiv, per ABC News. The attacks have virtually shut down shipping in Ukraine, a country with massive agricultural production, particularly corn and wheat. Russia and Ukraine are also major suppliers of metals and other industrial commodities, while Russia is one of the world's largest oil and gas producers. The invasion not only has ramifications for political stability in Europe and around the world, it's also straining a global economy already weakened by inflation, rising energy prices, the ongoing COVID-19 pandemic and a constrained supply chain. Here's how Russia's attacks on Ukraine, and the resulting economic sanctions from the West, are affecting Americans and people around the world.

Gas and oil prices on the rise
Russia's invasion of Ukraine has caused global energy prices to spike, with crude oil rising Thursday above $105 a barrel for the first time since 2014. The price cooled down a bit later on Thursday and Friday, and currently sits around $92.50 a barrel, according to OilPrice.com. Per AARP, the average price of gas in the US on Saturday was $3.60 a gallon, up slightly from $3.57 on Friday. Russia is one of the world's largest producers of crude oil and natural gas, providing roughly 40% of the European Union's gas. Sanctions from the West could affect access to that supply, especially with Germany putting a halt to the Nord Stream 2 pipeline that was intended to bring natural gas from Russia to the EU via the Baltic Sea.

Continued inflation
Russia is the largest exporter and second-largest producer of palladium, a metal used in mobile phones, automotive exhaust systems, fuel cells and even jewelry and dental fillings. Rising prices of palladium and other essential metals could lead to price increases for manufacturers and, ultimately, consumers. "We could see a new burst of inflation," the American Enterprise Institute's Christopher Miller told The New York Times.
[...]

More cyberattacks
The US Departments of Treasury and Homeland Security have both sounded the alarm over possible cyberattacks on US banks, hospitals, government offices and power grids in retaliation for sanctions against Moscow. On Thursday morning local time, websites for the Ukrainian cabinet and foreign affairs and education ministries were all experiencing disruptions. Herbert Lin, senior research scholar at Stanford's Center for International Security and Cooperation, told the Atlantic's Rachel Gutman that the Russians have elevated cyberattacks to an "art form." Though US banks have been heightening their defenses, Lin added, utilities in larger cities might be more at risk because they lack the extra funding for cybersecurity. Lin discouraged a panicked response by everyday Americans but said having extra cash and a go bag might not be a bad idea. He underscored that those items should always be in place regardless.

Rising food prices
Food prices have already gone up in the US and abroad, and the dent in wallets could get bigger with the Russian invasion. Ukraine is one of the top five corn exporters in the world, trading some 35.9 million metric tons in 2019 alone. An extended open conflict would likely see prices go up in Europe, not just for corn itself but also for related goods, including cooking oil, corn syrup and livestock feed. Soybean prices have also surged in the US in recent months, following an unusually poor crop in South America.
If US farmers have to make up the difference in both corn and soybeans, which compete for land, prices for both crops will likely rise in the United States, as will the cost of packaged goods made with them.                                                                                                                                                                      Russia is the world's largest exporter of wheat, a crop that Ukraine exports as well, commodities economist Arlan Suderman told MarketWatch. Together the two nations account for nearly a third (29%) of the global wheat trade. "A prolonged military conflict that disrupts trade could make much of that wheat unavailable to the export market," Suderman said. The US doesn't rely on Russian wheat -- Egypt, Turkey and Bangladesh are the biggest importers -- but the trade disruption could affect global prices on flour, pasta, bread, pizza and other wheat products. On the Chicago Board of Trade, wheat futures jumped by as much as 5.7% on Thursday, to just over $9.34 a bushel, the highest price since 2012. Soybean prices also leaped to a nine-year high, while corn climbed to an eight-month peak. Rates on all three futures have started to contract, with overnight losses of between 2% and 3%.

Available at: https://www.cnet.com/how-to/ukraine-russia-war-impact-on-gas-stocks-inflation-and-the-us-economy/. Access on: Feb. 27th 2022 (adapted).

According to the text, it is correct to say:

TEXT 5                                                                                                                                                                                                                                     Answer the questions from 54 to 60 according to the text 5.

 

Ukraine-Russia War: Impact on Gas, Stocks, Inflation and the US Economy
Stock prices rebounded Friday, but the invasion of Ukraine could bring about many disruptions to the US economy.

Russia's invasion of Ukraine intensified on Saturday as troops continued to march on the capital Kyiv, which has instituted a citywide curfew from 5 p.m. local time Saturday until 8 a.m. Monday. US defense officials report that Russian troops launched more than 250 missiles at Ukraine Saturday but have been slow to advance on Kyiv, per ABC News. The attacks have virtually shut down shipping in Ukraine, a country with massive agricultural production, particularly corn and wheat. Russia and Ukraine are also major suppliers of metals and other industrial commodities, while Russia is one of the world's largest oil and gas producers. The invasion not only has ramifications for political stability in Europe and around the world, it's also straining a global economy already weakened by inflation, rising energy prices, the ongoing COVID-19 pandemic and a constrained supply chain. Here's how Russia's attacks on Ukraine, and the resulting economic sanctions from the West, are affecting Americans and people around the world.

Gas and oil prices on the rise
Russia's invasion of Ukraine has caused global energy prices to spike, with crude oil rising Thursday above $105 a barrel for the first time since 2014. The price cooled down a bit later on Thursday and Friday, and currently sits around $92.50 a barrel, according to OilPrice.com. Per AARP, the average price of gas in the US on Saturday was $3.60 a gallon, up slightly from $3.57 on Friday. Russia is one of the world's largest producers of crude oil and natural gas, providing roughly 40% of the European Union's gas. Sanctions from the West could affect access to that supply, especially with Germany putting a halt to the Nord Stream 2 pipeline that was intended to bring natural gas from Russia to the EU via the Baltic Sea.

Continued inflation
Russia is the largest exporter and second-largest producer of palladium, a metal used in mobile phones, automotive exhaust systems, fuel cells and even jewelry and dental fillings. Rising prices of palladium and other essential metals could lead to price increases for manufacturers and, ultimately, consumers. "We could see a new burst of inflation," the American Enterprise Institute's Christopher Miller told The New York Times.
[...]

More cyberattacks
The US Departments of Treasury and Homeland Security have both sounded the alarm over possible cyberattacks on US banks, hospitals, government offices and power grids in retaliation for sanctions against Moscow. On Thursday morning local time, websites for the Ukrainian cabinet and foreign affairs and education ministries were all experiencing disruptions. Herbert Lin, senior research scholar at Stanford's Center for International Security and Cooperation, told the Atlantic's Rachel Gutman that the Russians have elevated cyberattacks to an "art form." Though US banks have been heightening their defenses, Lin added, utilities in larger cities might be more at risk because they lack the extra funding for cybersecurity. Lin discouraged a panicked response by everyday Americans but said having extra cash and a go bag might not be a bad idea. He underscored that those items should always be in place regardless.

Rising food prices
Food prices have already gone up in the US and abroad, and the dent in wallets could get bigger with the Russian invasion. Ukraine is one of the top five corn exporters in the world, trading some 35.9 million metric tons in 2019 alone. An extended open conflict would likely see prices go up in Europe, not just for corn itself but also for related goods, including cooking oil, corn syrup and livestock feed. Soybean prices have also surged in the US in recent months, following an unusually poor crop in South America.
If US farmers have to make up the difference in both corn and soybeans, which compete for land, prices for both crops will likely rise in the United States, as will the cost of packaged goods made with them.                                                                                                                                                                      Russia is the world's largest exporter of wheat, a crop that Ukraine exports as well, commodities economist Arlan Suderman told MarketWatch. Together the two nations account for nearly a third (29%) of the global wheat trade. "A prolonged military conflict that disrupts trade could make much of that wheat unavailable to the export market," Suderman said. The US doesn't rely on Russian wheat -- Egypt, Turkey and Bangladesh are the biggest importers -- but the trade disruption could affect global prices on flour, pasta, bread, pizza and other wheat products. On the Chicago Board of Trade, wheat futures jumped by as much as 5.7% on Thursday, to just over $9.34 a bushel, the highest price since 2012. Soybean prices also leaped to a nine-year high, while corn climbed to an eight-month peak. Rates on all three futures have started to contract, with overnight losses of between 2% and 3%.

Available at: https://www.cnet.com/how-to/ukraine-russia-war-impact-on-gas-stocks-inflation-and-the-us-economy/. Access on: Feb. 27th 2022 (adapted).

In “Together the two nations account for nearly a third (29%) of the global wheat trade”, the underlined term, in the text, corresponds to:

In “Broken bottles under children's feet Bodies strewn across the dead end street But I won't heed the battle call It puts my back up Puts my back up against the wall”, it is correct to infer:

Regarding the title “Anyone Can Teach?” and its grammatical structure, it is correct to say:

According to the text, what could be onsidered as the central theme of Mafalda´s comic trips?