The Association of Chartered Certified Accountants (ACCA) and The Institute of Internal Auditors’ (IIA) Internal Audit Foundation have produced a report emphasising the importance of internal control in the management of sustainability information.
The report, entitled “Internal control over sustainability data,” suggests that professionals in the fields of accountancy, internal audit, and finance, have a pivotal role to play in shaping the narrative through improved governance of sustainability data.
The Institute of Internal Auditors CEO and president Anthony Pugliese said: “By focusing on how we apply internal controls to sustainability data, our professions can collectively strengthen trust, support better decisions, and help build truly sustainable businesses.
“This report offers a clear path forward and a compelling call to action for accountancy, finance, and internal audit professionals to lead the way.”
The findings of the report are based on insights gathered from a series of interviews with over 50 experts and surveys from more than 900 respondents in relevant fields.
The report distils its findings into three primary recommendations.
Firstly, it identifies the need for a reassessment of traditional internal control frameworks to better accommodate the specific characteristics of sustainability data processing.
Secondly, the report stresses the importance of organisational leadership in championing sustainability objectives.
It must be underpinned by the top levels of management to integrate these objectives into the organisation’s planning, with progress measured against well-defined KPIs.
The report also calls for clear data ownership, particularly in sectors where awareness of control practices may not be inherently strong.
It also points out the necessity for individuals involved in internal control to be equipped with the appropriate expertise and skills.
Prior to this, ACCA partnered with the European Accounting Association to enhance relationship between academic research and the practical application within the accounting profession.
