Research On Procedures Of Enterprise Environmental Report Auditing

Worldwide environmental condition is worsing, and this already constitutes a seriousthreat to sustainable development of human beings. Our country’s environmentalissues are especially serious because of long-term unenlightened environmentalawareness and conflict between population and resources, and this situation has beena serious impediment to the healthy development of economy and society. As a newinformation resort in environmental governance, enterprise environmental report isbeing promoted in our country. Enterprise environmental report auditing has a greatsignificance for the function of this information resort. Based on this cognition, thispaper researches on related questions of enterprise environmental report auditing.This paper identifies procedures of enterprise environmental report auditing asthe main research question by literatures review. This paper intends to achieve thefollowing research purpose: work out systematic procedures of enterpriseenvironmental report auditing, in order to enrich system info of the research onenterprise environmental report auditing and provide instruction for the auditingpractice.In order to achieve the above research purpose, the paper expounds theoreticalbasis firstly, and decides to carry out research on procedures question based on riskmanagement theory. And then, this paper brings forward four principles forprocedures’ design under the requirement of theoretical basis and the actual needs ofenterprise environmental report auditing, including fully reflect the risk-orientedfeatures, make full use of environment disciplinary approach, take full advantage ofthe environmental management system and take full account of the integration anddifferences between enterprise environmental report auditing and financial reportauditing. On the basis of these principles, the paper establishes the general idea of theauditing procedures, and initially demonstrates the scientificalness and feasibility ofthe procedures’ design. In the following parts, this paper discusses risk identification,risk assessment and risk response procedures, and expounds the steps, considerationand methods in detail. Finally, this paper adopts the approach of interview withexperts to improve the research process and further demonstrate the scientificalnessand feasibility of the research goals.The main achievements are as follows: Under the direction of risk management theory, the main procedures of enterpriseenvironmental report auditing include enterprise environmental risk identification,environmental management system assessment as a whole, environmentalmanagement system assessment on assertions’ level, enterprise environmental reportmisstatement risk assessment, and risk response. These procedures withscientificalness and feasibility are in line with the requirements of risk managementtheory, and reflect the particularity of enterprise environmental report auditing.This paper is innovative in the following two points:The first point is the innovation of research approach. Previous researches onprocedures of enterprise environmental report auditing can be divided into two ways:one way is to simply divide the procedures into preparation, implementation andreporting, reflecting no difference with general auditing; the other way is tosummarize the procedures from the practices of enterprise environmental reportauditing, lacking firm theoretical basis. This paper gives full consideration to theabove deficiencies and uses innovative approach to make research on the auditingprocedures. Based on risk management theory, this paper brings forward theprinciples and general idea of procedures’ design, and firstly demonstrates thescientificalness and feasibility theoretically, then makes further demonstration from apractical point of view using experts interview. Based on a firm theory, this researchapproach reflects the combination of theory and practice, and also reflects the specialrequirements of enterprise environmental report auditing.The second point is the innovation of procedures’ design. The paper gives fullconsideration to the particularity of enterprise environmental report auditing, theunderstanding of enterprise environmental management system is closely integratedwith audit procedures, and the process from overall level to assertions’ level reflectstop-down idea of the audit. In the understanding of enterprise environmentalmanagement system, this paper also makes the elements correspond with internalcontrol factors from the internal control perspective. This design contributes to thehigh efficiency of CPA’s understanding of enterprise environmental managementsystem.