Environmental Accounting and Auditing - Role of CMAs

Abstract

An entity utilizes the natural resources available to it to execute it’ s business operations. As the entity uses the natural resources from the environment, it will have a duty to record the costs incurred and report regarding the natural resources it has utilized and ensure that the natural resources have been utilized effectively and efficiently.

Since late nineties, there has been increasing fear about the availability of natural resources for future generations and therefore, entities are under increasing pressure to reduce the unnecessary usage of environmental resources using cleaner production technologies and also to report the external and internal stakeholders which have paved the way to environmental accounting and environmental audit.