Business Ethics and Corporate Governance, Second Edition

ENVIRONMENTAL AUDIT

Environmental audits provide an in-depth review of the company processes and progress in realizing long-term strategic goals. The concept has come into force in recent years and differs from a financial audit in that it is intended to measure the impact of an organization’s operations on the environment against a predetermined set of criteria, and as far as possible to assess them in terms of costs. This audit is part of a continuing and cyclic process rather than an exercise in standard accounting practice at a given point of time. The audit may also be used to assist in determining the environmental expenses incurred by companies.

The environmental audit examines the company’s performance as against its policy with reference ...