Internal Audit under Section 138 of the Companies Act, 2013 : An Inclusive Approach towards ESG Reporting

Abstract

Internal audit is a primary face of reporting. It ensures error-free books of accounts, the safety of assets, averting fraud and is an effort to minimise the overall audit risk. The occurrence of Enron, Satyam and DHFL debacles has necessitated the effectiveness of internal audit which is a sub-set of internal control measures. Until now, environmental and social reporting are not much significant reports in view of Companies Act, 2013. But, ESG (Environmental, Social and Governance) reporting is going to become an increasingly important analysis for investment process in future. This article focuses upon the analysis of an inclusive approach of ESG reporting in internal audit.