Page 393 - Ebook HTKH 2024

- Stakeholder - -
inclusiveness

- Sustainability - -
context
Source: ESG Disclosure Handbook
Reporting and follow – up
Internal audit reports the auditor’s opinion about how ESG-related factors may
affect their business model and strategy, and how its activities might affect the

environment and society, where such information is material. The disclosed information
should include the organization’s policies on ESG-related issues, describing its
commitment towards those issues and its due diligence processes.
The figure below clarifies a “performance rating” into audit report which audit
clients should demand greater value from internal audits regarding ESG matters:
Figure 8. Description of a performance rating in an internal audit report

Performance rating
Overall Improvement
opportunities
Compliance Meeting a compliance obligation while Improvement
non-compliance is non – fulfillment of a opportunities
compliance obligation.

Efficiency Producing the maximum output from Improvement
inputs – using resources well. opportunities
Effectiveness Achieving objectives as intended – using Good practices
resources widely.

Economy Minimizing cost of resources used – Improvement
using resources economically but opportunities
maintaining quality.
Ethics and fraud Values that guide in all aspects of work, Good practices
share values and behavior in the company.
Source: www.theiia.org

The chief audit executive must set up and support a system to monitor the
disposition of results communicated to management. Figure 9 below illustrates the
reporting and follow-up activities in an ESG engagement:

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