Our Country Environment Audit Risk Research

Zheng-di Gu

and Ying-jun Liu

Finance and Economy, PhD student of Southeast University, Associate Professor of Nanjing Audit University,

No. 77 North Road, Gulou District, Nanjing, China, 210000

Liu Yingjun, Nanjing Audit University Jinshen College, Nanjing city Qixia District Xianlin Avenue, China, 210000

Keywords Environmental Audit, Audit Risk, Solutions.

Abstract With environment problem increasingly prominent, the environmental audit work to control and prevent

environmental pollution, restore and improve the ecological environment has played a more and more

important role. As long as is the audit risk, and environment audit is no exception. This article through to

our country environment audit the analysis of the existing problems and the cause of the problem, give

reasonable Suggestions.

1 INTRODUCTION

Environment and resources furnish the material

basis and guarantee for the survival and

development of human beings. Human resources

development in the economy, but also causing

pollution and ecological damage to the

environment, to the survival and development of

human beings set a great threat. With the

acceleration of the development of the concept of a

harmonious society, environmental protection and

ecological balance began to recognize attention,

which for the emergence and development of

environmental auditing provide the foundation.

Carrying out environmental audits is one of the

important means to promote environmental

protection and sustainable maturation of them.

However, Environmental Audit is also affected by

various factors and the risk is one of the aspects of

the problem.

2 RISK STATUS OF

ENVIRONMENTAL AUDIT

Risk Status of Environmental Audit At present, the

theory and practice of audit risk work environment

have just set off, is still in the exploratory stage,

there is a wide gap between the developed countries

and the West. The main performance in the

following areas:

2.1 Lack of Theoretical Guidance

System

China's environmental protection work is relatively

late start, although recent years, China has

vigorously preached voluntary disclosure of

environmental information of listed companies,

because of people's weak awareness of

environmental protection, and regulating the

relative lack of disclosure of environmental

information, public participation led to efforts will

not be enough. Not only the lack of people's

awareness of environmental protection, there is no

risk of an environmental audit of the importance

and urgency of understanding, and our audit

researchers environmental auditing oversight role

for yet more profound understanding of the

environmental audit risk theory nor be more fully

explore the research system, resulting in our country

there is no specific theoretical framework and

Gu Z. and Liu Y.

Our Country Environment Audit Risk Research.

DOI: 10.5220/0006018900480053

In Proceedings of the Information Science and Management Engineering III (ISME 2015), pages 48-53

ISBN: 978-989-758-163-2

guidelines provide a scientific basis for assessing

the environmental audit risk. This situation restricts

the work environment of audit risk which is

increased to the height of building a harmonious

lodge, and also restricting the deepening of

environmental audit work.

2.2 Performance Evaluation

Mechanism Is Not Perfect

In the absence of profound understanding of the

essence of the context of "building

environment-friendly lodge" concept, some

policymakers feel "develop first, clean up later" or

"just development, not governance" of luck. More

seriously, the risk of these decision-makers

indifferent to face environmental audits, but only

one-sided pursuits of short-term economic benefits,

leading to normal environmental audits. Due to

environmental audit risk and potential complexity

of features, auditors manage hazards generally

focus on there is a pattern of risk, but not

particularly concerned about the potential risks,

which would lead to deviation management will

eventually affect the quality of environmental

auditing. In addition, since under the framework of

the voluntary disclosure of environmental

accounting information, some agencies will be

completely in accordance with their own needs and

habits of different forms of disclosure, resulting in

environmental protection information presented not

only in the face of external users on the

comparability relatively scarce, and in also not very

good on the guarantee usefulness. This phenomenon

leads to a great relationship with the assessment

mechanism leading sector, environmental protection

and environmental audit risk lack of attention in the

work of the existing performance appraisal system,

resulting in the severe environmental situation and

economic sustainable development of

contradictions.

2.3 Inadequate Auditing Methods and

Techniques

Due to the time of proposing environmental audits

is not long, used in practice more financial audits,

audits necessary knowledge engineering, and

environmental auditing relative lack of expertise

and tools, resulting in some of the distance still to

achieve fully operational environment audit

requirements. China's current environmental audit

work is the main line of special funds for

environmental protection, based on the financial

audit report of the audit, the audit basic ideas and

audit methods used or the auditing. Environmental

benefits combined audit qualitative and quantitative

analysis, problem-oriented analysis, and other

aspects of a variety of methods to track extends not

fully covered, resulting in actual audit cannot

guarantee the quality of the audit report, to eventual

risks. Lack of technical resources and complex

environmental auditing personnel, information

technology and analytical tools needed for the

actual audit work is also lacking, thereby blocking

the normal conduct environmental audits, increasing

the risk of environmental auditing. In addition,

because, after all, is the emerging field of

environmental auditing audit, financial,

environmental, engineering and other related

content is covered, auditing also takes a certain

complexity, which requires professional

competence environmental auditor must have. But

in the current environment and conditions of audit

experience, audit staff to enforce the practice on

accurate judgment and strong analytical skills, there

are still some distances to go.

2.4 Lack of System and Authority

The regime under environmental law due to the

intangible nature of the ecological environment and

non-quantifiable benefits and are not properly

Our Country Environment Audit Risk Research

implemented and executed in the evaluation system

of green national economic accounting and

environmental laws and regulations are relatively

empty, how uniform standards in practice, scientific

and accurate measurement and a comprehensive

assessment are a relatively difficult problem

[3]

Although China has proclaimed use laws,

regulations and environmental standards,

environmental protection, environmental audit

oversight system to furnish a basic reference, it is

not complete nor perfect, there are still some legal

gaps not covered. In the course of our audit, the

current does not have a more standardized audit

approach to the audit staff to allow a relatively

uniform audit trail and evaluation criteria for them

to implement risk-based audit and auditors result in

the specific operation, still feel the pressure of

objective difficulties associated with the

implementation of the actual work, increases the

difficulty of making a reasonable assessment of the

appropriate environmental audit risk, greatly

weakened the effect of the implementation of

environmental auditing risk-based audit.

3 RISK REASONS OF

ENVIRONMENTAL AUDIT IN

CHINA

3.1 Derived from the Audited Program

Itself

Compared with traditional audit methods,

environmental auditing has its certain particularity.

Tracking audit or post audit generally utilize the

traditional way, with a focus on post-supervision.

However, environmental audits and other major

construction projects, especially those with

long-term effects characteristic of environmental

projects, environmental impact may take several

years to be revealed, but the original track with the

end of the audit will audit the project ended. Thus,

to make a closer follow-up audit will be difficult to

appraise the real environmental impact of its

follow-up. And more obvious shortcomings of post

audits that for fixed asset investment projects such

as environmental audits, found a problem even in

the post-audits, in many cases the actual work is

very difficult to correct

[4]

. Thus environmental

audit using the original audit the way there are some

difficulties, the conclusions are the limitations of

relatively large, the ultimate risk of material

misstatement environmental audit will be improved,

while the environmental audit should be immune

function in environmental protection also difficult

to play.

3.2 Derived from the Audited Entity

Throughout the course of development of

environmental auditing, environmental auditing

overseas is a bottom-up process, originally from

industrial enterprises in the beginning, then

gradually develop into the government agencies.

And audit of our country road, by contrast, is

dominated by the government and promotes, this

will cause the enterprise short-term plans with the

government's long-term plan of contradiction.

Enterprise itself will often take a negative and

passive attitude towards the environmental audit

very conducive to raising the environmental audit

work.

Although China has developed a series of

environmental laws and regulations, many

institutions and public awareness of environmental

protection are still relatively weak, the audited

entity may even deliberately accommodate part of

the audit of audit information or provide false

information in order to achieve corporate profits

maximization purposes. This makes the work more

difficult audit to verify, enhance the environmental

audit risk of material misstatement.

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3.3 From the Audited Entity

At present, more and more units engaged in audit

work, causing the post. In addition, due to

environmental audit findings take characteristic not

quantifiable characteristics, on this basis, to sustain

the independence of the audit work becomes more

difficult. The key to tighten the audit risk is to

sustain the independence of audit work.

3.4 From External Factors

Environmental audit work is tried the merits of the

non-audit-related matters which are an important

basis for environmental audit basis. However, China

has not yet issued an environmental audit can be

directly based on the specific rules and regulations

set forth. Although environmental auditing "Audit"

laws and regulations "Audit applying ordinances"

have some involved, in reality, due to

environmental information is provided in the

audited entity is insufficient, the legal system of

environmental indicators is still not clearly defined

criteria, etc. The reason, according to the relevant

audit so that audit work is relatively lacking, but

also increased the environmental audit jeopardy of

material misstatement in.

4 CHINA'S ENVIRONMENTAL

AUDIT RISK RESPONSE

MEASURES

4.1 Better the Audit System and

Related Laws and Regulations

Environmental auditing standards are an important

basis for the work of environmental auditing judge

the merits of the non-audit-related matters,

absorbing a very important position in the

environmental audit work. Through continuous

improvement of environmental auditing standards,

the provisions in dispute and contradictions modify,

integrate, for omissions, weak provisions were

filled, it can effectively tighten the risk of

environmental auditing. To better the auditing

standards specifically in the following ways: First,

to better the environmental audit evaluation

standards. To both micro and macro levels to reach

sustainable economic and social development, we

must construct a complete environmental audit

evaluation standards. This can be from the

cost-efficiency index, internal environment, external

environmental indicators and long-term

environmental indicators, etc. to build

environmental audit evaluation index. The second is

to influence a sound environmental audit

arrangement. In the form of laws and regulations on

environmental accounting system to determine the

status and role in the accounting system on the basis

of the traditional factors of environmental

protection was added, and in the context of

accounting rules relating to environmental

principles redesign the relevant provisions.

Establishment of an independent accounting of

environment-related economic and business

accounting practice, and the contents of the

environment-related agencies as accounting

information that must be disclosed, and the

short-term behavior of enterprises plays an effective

role in prevention. Environmental accounting can

do so according to the law, so practice is

strengthened operability and unity, avoid their own

directions, to tighten risks of material misstatement

environmental audit work. The third is to gradually

improve the system of environmental information

disclosure, development of standards and routines

for environmental information disclosure. And

abiding environmental auditing laws and

regulations including environmental laws and

regulations, financial regulations, accounting

standards, accounting system, auditing standards,

etc, by strengthening the construction of accounting

and auditing rules and regulations, and to develop

Our Country Environment Audit Risk Research

practical measures for implementation of

environmental audits, in order to ensure

environmental audit quality of work, to achieve

effective control environment audit risk of material

misstatement.

4.2 Enhance Risk Awareness of

Environmental Auditors

Enhance risk awareness of environmental auditors:

To strengthen the risk awareness of environmental

designers, and you can achieve by the following

ways: first, we should strengthen the awareness of

environmental audit risk. Environmental audit risk

environment at each stage of the audit process is all

possible, and throughout the entire environmental

audit, directly affects the effects of the

environmental audit, the audit staff should fully

understand the risks of environmental auditing and

before starting work on strengthening audit to

establish risk awareness

[6]

. The second is to

improve the audit module of environmental audit

risk identification and assessment capabilities. Due

to environmental audit risk taking a strong complex,

the ability of auditor’s risks identification and

assessment of the impact to the quality of the audit

work are very direct, very significant. The third is to

improve the prevention of environmental auditing

risk consciousness. Because there is the possibility

of environmental auditing risk auditing Omni

bearing, which no moment test the endurance and

perseverance of audit staff, audit staff improve the

preventive consciousness of environmental audit

risk is particularly important and need to constantly

in the audit process against the occurrence of the

environmental auditing risk. In addition, audit

evidence obtained in the traditional audit approach

is often limited to accounting data, and hear the

characteristics of environmental auditing auditors

must break through the traditional audit approach.

Environmental impact report, pictures feasibility

studies, related contracts, agreements, pollution

index valuing events and the environmental

pollution situation of other non-finance related

accounting information as audit evidence should be

collected to obtain an environmental audit.

4.3 Better the Professional Quality of

Environmental Auditors

During the audit in order to offer environmental

audits in order to check the effectiveness of the

audit system implementation, so that effectively

circumvent the audit risk, the premise is the overall

quality of the audit staff needs to be improved.

Professional and operational characteristics of

environmental audit are the largest, and only

excellent professional quality to protect the

environment for the smooth conduct of audit work,

and tighten audit risk and improve audit quality play

a substantial help. Currently, one of the important

ways to improve the professionalism in our audit

staff is on the auditors of effective follow-up

education. The effect of improving the level of

professional knowledge and the ability of the

business are improved by the training of the

professional knowledge and business ability of the

auditor. In addition, accepts the precondition to

implement regular rotation organization, the audit

staff in different positions in the rich commercial

knowledge, exercises the ability to work,

accumulate work experience can also be to improve

the professional quality of environmental audit

staff. If necessary, you can also invite experts

involved in the project together, after taking on

specific outputs encountered in the project to

discuss the resolution appropriate audit methods to

guarantee the credibility of the audit findings, in

order to reduce the risk of environmental audit

inspection.

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4.4 Strengthen Collaboration Auditing

Accounting and Environmental

Sectors

Auditing, accounting and environmental sector as

actors in environmental management is closely

linked to their duties. At present, China's

environmental audit started late, still in its infancy,

the environmental protection department is

responsible for the development of specific

environmental planning and policy, the latest

information on environmental protection, trends and

trends with the most comprehensive understanding

and grasp. In order to tighten the actual

environmental audit process audit risk, departments

should beef up cooperation. Accounting

departments should actively carry out

environmental accounting knowledge

popularization and organize training, auditing

departments should actively play a good job in the

review and supervision of the environmental

accounting information of the rationality, legality,

comprehensive and authenticity, and urge and

supervise the enterprise green accounting correctly,

the festival about resources, rational development

and protection of the environment to be conscious

of. Strengthen collaboration with the accounting

and auditing department of environmental

protection, both to better accomplish its mandate to

mobilize the enthusiasm, but also in order to

constantly update and improve their capacity and

serve to reduce environmental auditing checks risks.

5 CONCLUSION

In short, today's rapid economic development,

environmental audit risk, is a comprehensive

problem. China's current situation is still very grim

environmental audit, and environmental audit work

is to be done.

ACKNOWLEDGEMENTS

This research was financially supported by the

Jiangsu Province University Natural Science

Research Projects (number: 14KJD120002); and

"The project blue with the outstanding young and

promising teachers in 2014."

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Our Country Environment Audit Risk Research