Internal and External Sustainability Audits (Research Paper Sample)

Internal and External Sustainability Audits
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Internal and External Sustainability Audits
Internal and external audits have become a core factor in corporate management. The auditing exercises entails reporting on both financial and nonfinancial risks that may be attached to the company. Internal auditing excises utilizes the auditors of the organizations. It becomes necessary for the external auditing to be conducted for its more objective and can indicate any deviation, or errors that may not have been identified by the internal auditors. The stakeholders deserve the right to know exactly how the corporation is running its agenda. The audits enhance accountability to the stakeholders which in turn promotes honesty and understanding between the management and the stakeholders. Auditioning portrays a positive image of the company to the stakeholders and all those who may want to invest in the company can easily invest in the company because they are assured of the safety of their finances. Through auditing of the various departments of the organizations it becomes easier to identify the risks that the organization faces, their magnitude and it’s able to come up with the right strategies to mitigate the risks CITATION Day06 \l 1033 (Daykin, 2006).
The Coca-Cola Company in Nigeria in the year 2007 landed into an audit nightmare in which there was a deficit of $2million. The company’s external auditors revealed that money was missing from what had been provided as the budget for the annual year. This audit was requested by the stake holders upon realization of some figures not adding up. However the company traced its errors and it was an error with the figures writing. The report was corrected and reprinted afresh CITATION Coc08 \l 1033 (Coca-Cola, 2008).
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Learning the auditing process has helped understand how errors ca...