The Role of Internal Auditors in Implementation Social Environmental Governance
DOI:
https://doi.org/10.36555/jasa.v7i3.2300Keywords:
Environmental Social Governance, Internal Auditor, SustainabilityAbstract
The aim of this study is to know how big the role of the auditor is in raising awareness of the application of sustainability reporting and the extent to which information is disclosed on the aspects of Environment, Social and Governance (ESG). Several previous studies were used as objects reviewed. The result underscores the multifaceted contributions of internal auditors, ranging from providing assurance on ESG disclosures and conducting due diligence on business partners to engaging in consulting activities and fostering a sustainable supply chain. This practice emphasizes that ESG-related expertise within Internal Audit Functions (IAFs) is crucial for promoting ESG maturity and effective reporting. Collaboration between internal and external auditors is vital to maintain independence and objectivity, ensuring the quality and reliability of ESG-related information. The trend of integrating ESG considerations into audit processes aligns with the broader global shift toward responsible business practices, and it positions internal auditors as valuable contributors to corporate governance and stakeholder trust. As ESG gains prominence, the internal auditor's ability to navigate the complexities of ESG metrics and controls becomes a competitive advantage, reinforcing their role as a key player in achieving sustainable and responsible business outcomes.
References
Alsahali, K. F., & Malagueño, R. (2022). An empirical study of sustainability reporting assurance: current trends and new insights. In Journal of Accounting and Organizational Change (Vol. 18, Issue 5, pp. 617–642). Emerald Publishing. https://doi.org/10.1108/JAOC-05-2020-0060
Al-Twaijry, A. A. M., Brierley, J. A., & Gwilliam, D. R. (2004). An examination of the relationship between internal and external audit in the Saudi Arabian corporate sector. Managerial Auditing Journal, 19(7), 929–944. https://doi.org/10.1108/02686900410549448
Azra sahira, Naz aina, Hilmi, & Dy ilham satria. (2022). 8930-26110-1-PB. Jurnal Akuntansi Malikussaleh.
Benston, G. J. (2005). ACCOUNTING AND CORPORATE ACCOUNTABILITY *. In Organizations and Society (Vol. 7, Issue 2).
Brown, H. S., de Jong, M., & Lessidrenska, T. (2009). The rise of the Global Reporting Initiative: A case of institutional entrepreneurship. Environmental Politics, 18(2), 182–200. https://doi.org/10.1080/09644010802682551
C. Gregory rogers. (2005). Financial reporting of environmental liabilities and risk after sarbanes oxley. gramedia.
chambers. (2017). The german chambers of commerce and industry (eberhard & sasse, Eds.).
Dang, T. L., & Nguyen, T. M. H. (2020). Liquidity risk and stock performance during the financial crisis. Research in International Business and Finance, 52. https://doi.org/10.1016/j.ribaf.2019.101165
Druckman, P. (2013). The Routledge hanbook of Integrated Reporting. Routledge.
Dyah Utami Larasati. (2021). KLHK sanctions PT TPL.
Effendi, B. (2021). Copyright@2019. P2M UNIVERSITAS BINA INSANI. 6(1), 125–138.
Eulerich, A., & Eulerich, M. (2020). What is the value of internal auditing? – A literature review on qualitative and quantitative perspectives. Maandblad Voor Accountancy En Bedrijfseconomie, 94(3/4), 83–92. https://doi.org/10.5117/mab.94.50375
Eulerich, M. (n.d.). The new Three Lines model for structuring corporate governance-A critical discussion of similarities and differences. https://ssrn.com/abstract=3777392
Eulerich, M., Bonrath, A., & Lopez Kasper, V. I. (2022a). Internal auditor’s role in ESG disclosure and assurance: An analysis of practical insights. Corporate Ownership and Control, 20(1), 78–86. https://doi.org/10.22495/cocv20i1art7
Eulerich, M., Bonrath, A., & Lopez Kasper, V. I. (2022b). Internal auditor’s role in ESG disclosure and assurance: An analysis of practical insights. Corporate Ownership and Control, 20(1), 78–86. https://doi.org/10.22495/cocv20i1art7
Eulerich, M., Bonrath, A., & Lopez Kasper, V. I. (2022c). Internal auditor’s role in ESG disclosure and assurance: An analysis of practical insights. Corporate Ownership and Control, 20(1), 78–86. https://doi.org/10.22495/cocv20i1art7
Eulerich, M., & Lohmann, C. (2022). Information Asymmetries and Intra-Company Monitoring: an Empirical Analysis of Nonlinear Relationships Between Company Characteristics and the Size of the Internal Audit Function. Schmalenbach Journal of Business Research, 74(1), 103–127. https://doi.org/10.1007/s41471-021-00128-2
Gakkum. (2022). Laporan kinerja tahunan 2022.
Gillan, S. L., Koch, A., & Starks, L. T. (2021). Firms and social responsibility: A review of ESG and CSR research in corporate finance. Journal of Corporate Finance, 66. https://doi.org/10.1016/j.jcorpfin.2021.101889
Hassan, A. S., & Meyer, D. F. (2022). Does countries’ environmental, social and governance (ESG) risk rating influence international tourism demand? A case of the Visegrád Four. Journal of Tourism Futures. https://doi.org/10.1108/JTF-05-2021-0127
Ikhsan, A. (2008). Akuntansi lingkungan dan pengungkapannya. Yogyakarta: Graha Ilmu.
Karino, S., Yumoto, M., Itoh, K., Uno, A., Matsuda, M., Yamakawa, K., Sekimoto, S., Kaneko, Y., & Kaga, K. (2004). Magnetoencephalographic study of human auditory steady-state responses to binaural beat. International Congress Series, 1270(C), 169–172. https://doi.org/10.1016/j.ics.2004.05.072
Lopes da Silva, W., & Onome Imoniana, J. (2021). Auditing as an effective mean of communication on environmental, social and governance issues in Brazil. Entrepreneurship and Sustainability Issues, 9(1), 103–122. https://doi.org/10.9770/jesi.2021.9.1(7)
MFlood, J. (2014). AU-C 610 The Auditor’s Consideration of the Internal Audit Function in an Audit of Financial Statements AU-C EFFECTIVE DATE AND APPLICABILITY.
Rakipi, R., & D’Onza, G. (2023). The involvement of internal audit in environmental, social, and governance practices and risks: Stakeholders’ salience and insights from audit committees and chief executive officers. International Journal of Auditing. https://doi.org/10.1111/ijau.12341
santi gopal maji, prochi lohia. (2023). environmental,social governance (ESG) performance and firm performance in india. 18(1).
Sawitri, A. P., & Setiawan, N. (2019). Analisis Pengaruh Pengungkapan Sustainability Report, Kinerja Keuangan, Kinerja Lingkungan Terhadap Nilai Perusahaan. Journal of Business & Banking, 7(2). https://doi.org/10.14414/jbb.v7i2.1397
Soh, D. S. B., & Martinov-Bennie, N. (2015). Internal auditors’ perceptions of their role in environmental, Social and governance assurance and consulting. Managerial Auditing Journal, 30(1), 80–111. https://doi.org/10.1108/MAJ-08-2014-1075
Suaidah, Y. M. (2018). PENGARUH MEKANISME GOOD CORPORATE GOVERNANCE DAN PROFITABILITAS TERHADAP MANAJEMEN LABA. Jurnal Riset Akuntansi Dan Keuangan Dewantara, 20(2).
Thistlethwaite, J. (2015). The politics of experimentation in climate change risk reporting: the emergence of the Climate Disclosure Standards Board (CDSB). Environmental Politics, 24(6), 970–990. https://doi.org/10.1080/09644016.2015.1051325
Thistlethwaite, J., & Paterson, M. (2016). Private governance and accounting for sustainability networks. Environment and Planning C: Government and Policy, 34(7), 1197–1221. https://doi.org/10.1177/0263774X15604841
