Accountants and managers are familiar with auditing processes. They conduct audits to examine cash flow efficiency, operational efficiency, and the efficiency of advertising campaigns. The idea of the audit is to get a snapshot of how effectively the company uses its resources. Until recently, environmental concerns were not a part of this process. Recent evidence indicates that the environmental audit can have a measurable impact on the operational efficiency of the organization (Rennings, Ziegler, & Ankele et al., 2006). The amount of literature available on the topic indicates that it is now an important part of the accounting audit.
Environmental auditing is referred to as the environmental impact audit (EIA). In certain industries, it is mandatory and required by law. However, in companies where it is not mandatory, evidence supports the importance conducting one even if it is not necessary. For instance, the pulp and paper industry is required by law to conduct regular environmental impact studies. The Food and Agriculture Organization of the United Nations publishes specific guidelines for conducting an environmental audit (FAOUN, 1996). Although these standards are over 19 years old, they still represent the most recent and widely used guidelines for environmental auditing. They serve as an excellent example for other industries to design their audit practices. These guidelines are key resources in the design of environmental auditing practices.
Globalization has placed increased pressure on nations and individual organizations to make certain that their policies and processes comply with International Standards, such as ISO 14001 (Morrow & Rondnelt, 2002). A number of tools have now been developed to help companies comply with these standards. These tools focus on the use of natural resources and other environmental impacts of the business. Some of the tools are business specific and others are adaptable to different situations (Finweden & Moberg, 2005). Selecting an appropriate tool for a specific business is an element that cannot be overlooked in the development of environmental auditing processes (Hojer, M.,...
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