The Role of Environmental Auditing in Improving the Performance of Economic Institutions

Abstract

This paper aims to explore the role of environmental auditing in enhancing the environmental performance of economic institutions, while identifying the factors influencing environmental audits and the challenges associated with financial practices, as well as the oversight role played by specialized environmental protection agencies.The growing interest from researchers and stakeholders in the field of environmental auditing has led to the development of this professional practice to include environmental accounting aspects. Given the existence of various types and classifications of environmental audits, along with the diversity of their fields and methods, their objectives have also diversified to serve the specific goals of each type. These objectives reflect the importance of environmental auditing within institutions and for related entities, such as environmental protection organizations.The success of environmental auditing is closely linked to its significance and its ability to be comprehensive and integrated—covering all activities of the economic institution, whether related to environmental monitoring of projects or environmental accounting—which contributes to the disclosure of the institution’s environmental performance and ultimately ensures its sustainability.