Audit in environmental reporting

This chapter investigates the audit challenges in corporate environmental reporting. We performed an analysis of the literature by collecting studies published by academics and practitioners to define the current state of the art, best practices, opportunities, and benefits in light of recent regulations. Our analysis presents the trends of auditing practice in terms of assuring environmental information (i.e. greenhouse gas emissions, climate-related information, environmental management systems, and carbon emissions). The findings reveal that assurance on environmental reports is a consolidated practice among companies requiring the independent assurance provided by a third party. They also highlight advantages for companies that assure their reports, such as increased believability and credibility, and the enhanced quality of information. Hence, this chapter identifies critical issues in auditing practices and provides insights for future research.