Internal audit teams’ responsibility to verify material ESG data continues to expand as more than 60 jurisdictions weigh new sustainability reporting requirements
The reporting deadlines coming within the next year or two from the European Union’s extra territorial Corporate Sustainability Reporting Directive along with the wave of other legislation and regulation across Latin America, California, and Asia will instigate an increased role for corporate internal audit functions, especially around the verification of data internal controls in regard to environmental, social & governance (ESG) reporting and because many jurisdictions require third-party assurance.
Across corporate governance, internal audit executives are central to board oversight duties and in particular interfacing with the board’s audit committee. Indeed, audit executives’ duties include risk management, controls, and governance processes and policies, and they report on these to boards of directors, audit committees, and relevant stakeholders, according to the International Sustainability Standards Board (ISSB).
In addition, internal audit leaders can offer insights…
