EconPapers    
Economics at your fingertips  
 

Insights into current practices in auditing environmental matters

Christina Chiang

Managerial Auditing Journal, 2010, vol. 25, issue 9, 912-933

Abstract: Purpose - The purpose of this paper is to investigate insights into current practices in auditing “environmental matters” in accordance with Audit Guidance Statement 1010:The Consideration of Environmental Matters in the Audit of Financial Reports,which was introduced by the New Zealand Institute of Chartered Accountants in 2001. Design/methodology/approach - The approach to gathering evidence for this study is qualitative semi‐structured in‐depth personal interviews with 27 auditors: 18 financial auditors (FAs) in chartered accounting practice and nine public sector auditors (PSAs) from the office of the Auditor‐General. Findings - The interview findings confirmed that the auditors respond to isomorphic pressures that affect them, either by employing acquiesce or compromise strategies and that institutional theory fits best as an appropriate theory to frame the research. Environmental matters are only considered in the planning of a company audit when it is significant and relevant to financial reporting. However, evidence showed that FAs are influenced by mimetic isomorphism by adopting the perspective of company management. On the other hand, PSAs are driven by the legislative mandate imposed by the Local Government Act 2002 to search out and verify the validity, accuracy and completeness of information on environmental matters. FAs auditing both companies in the private sector and public sector organisations are able to maintain two dissimilar approaches and attitudes, depending on the type of entities they are auditing. Research limitations/implications - As with all qualitative interviews, there are some limitations associated with individuals' responses to the semi‐structured open‐ended interview questions. Practical implications - To prioritise the consideration of environmental matters in the audit practices of FAs for company audits will require both coercive and normative pressures in their organizational sphere. Originality/value - This study assists in understanding an audit phenomenon not widely known. It would also add a geographical variation to existing literature.

Keywords: Environmental management; Environmental regulation; Auditing; Organizational theory; Auditors; Public sector accounting (search for similar items in EconPapers)
Date: 2010
References: Add references at CitEc
Citations:

Downloads: (external link)
https://www.emerald.com/insight/content/doi/10.110 ... d&utm_campaign=repec (text/html)
https://www.emerald.com/insight/content/doi/10.110 ... d&utm_campaign=repec (application/pdf)
Access to full text is restricted to subscribers

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:eme:majpps:02686901011080062

DOI: 10.1108/02686901011080062

Access Statistics for this article

Managerial Auditing Journal is currently edited by Professor Jie Zhou

More articles in Managerial Auditing Journal from Emerald Group Publishing Limited
Bibliographic data for series maintained by Emerald Support ().

 
Page updated 2025-03-19
Handle: RePEc:eme:majpps:02686901011080062