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Essay / Research Paper Abstract
A 5 page paper. The questions posed are: Should accountants become more proactive in environmental issues? and Should auditors become more proactive in environmental issues beyond reporting? And, if so, what role should either play? The writer discuses the primary role of fiscal auditors and responds to the question. The writer then illustrates what steps accountants might take to be more proactively involved. Bibliography lists 5 sources.
Page Count:
5 pages (~225 words per page)
File: MM12_PGacten.rtf
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beyond reporting or leave these issues to lawyers and governmental agencies? The second part of each question is: If either should become more proactive, what should that role look like?
External auditors should not become more proactive. Internal auditors might be able to assume a more proactive role but still, their first responsibility is to report on the fiscal
issues of the company. Accountants could become more proactive within their companies. Both an internal and external auditor must be objective in order to report compliance with the laws
accurately and fairly. It is the external auditors job to assure the financial integrity of the company or organization (Macdonald, 1996). They do so by staying current on any changes
in regulations, laws, reporting processes related to a companys fiscal state. Following their investigation and calculations, they report their findings to all stakeholders including federal agencies, such as the Securities
and Exchange Commission (SEC), as appropriate for the type and size of the company (Macdonald, 1996). These auditors must be objective, they must look only at the data and information
they are responsible for evaluating (Macdonald, 1996). It is true that external auditors interpret the data for the company and its stakeholders and include a rash of notes in the
financial reports but moving external auditors into a more proactive role in terms of environmental issues that are beyond compliance would make their role far more complex and it is
already complex enough. It is difficult enough keeping up on fiscal regulations and changes made by the various regulatory agencies. Imposing any sort of environmental discussion in their audits is
beyond their scope, not beyond their capability with further training but beyond the scope of a good auditor. One of the key functions of the internal auditor is to
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