Internal audit’s role in sustainability governance and reporting
Independent assurance can strengthen sustainability governance, controls and reporting while preserving management accountability.
Facultas Advisory · Originally published
Revised edition
Independent assurance, not ownership
Internal audit can assess the governance, risk management and controls supporting sustainability objectives. Management remains responsible for the strategy, its execution and the underlying controls. Assurance does not guarantee compliance or remove uncertainty.
Focus on the information chain
A useful review can follow a reported indicator from its source through calculations, adjustments and approval. Are definitions consistent? Are responsibilities clear? Can the organization substantiate the information and explain changes? The scope should reflect the risks and intended use of the reporting.
Protect objectivity and capability
Advisory work needs clear boundaries so that internal audit does not take management decisions or assume ownership of controls it may later assess. Teams should evaluate whether they have the relevant expertise and whether specialist support is needed.
Make findings actionable
Report weaknesses, their implications and agreed actions with accountable owners. Follow up on remediation. The aim is useful independent challenge and assurance, not an unsupported declaration that the organization’s sustainability performance is sound.
Reference
IIA — Integrated Thinking and Sustainability (opens in a new tab)
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