Pressures for Change in Environmental Auditing
Journal of Managerial Issues, Vol. X, No. 3, pp. 340-354, Fall 1998
29 Pages Posted: 28 Jun 2004
This article identifies and discusses changes in the risks companies face in managing environmental issues. Specific attention is focused on the changes in direction at the Environmental Protection Agency, their current initiatives, and their expectations with regard to the new international environmental standard, ISO 14000. Also discussed are the potential implications of these changes on management's approach to monitoring environmental risks.
As the risks of financial loss and image damage from catastrophic environmental problems increase, many companies are designing systems for prevention rather than mere regulatory compliance. In the past, audit teams were typically composed of engineers and scientists considered best able to achieve compliance with governmental regulation. However, as companies turn their focus toward designing and monitoring environmental management systems, the role of internal auditors is likely to increase because of their greater expertise in auditing systems.
Keywords: Environmental auditing, internal auditing, ISO 14000, Environmental Protection Agency
JEL Classification: M40
Suggested Citation: Suggested Citation