Auditing the Soft Stuff: Firms Step up to the "Touchy-Feely" | AccountingWEB

Auditing the Soft Stuff: Firms Step up to the "Touchy-Feely"

Auditing has taken on a new meaning as firms are called upon more and more to audit more than just the financials. Take BP Amoco, for instance. They called upon Ernst & Young Environmental Services Group to audit their social and ethical behavior.

The reasoning behind this change in mindset stems from a growing responsibility companies feel they have to stakeholders who more than just the company's financial picture. In fact, the process is known as a "triple-bottom-line exercise in corporate citizenship."

This also means that firms must hire auditors who understand more than just the numbers. These are people who should have a background in social and environmental matters.

Still, there are no rules for reporting on these kinds of matters, and firms are relying on traditional audit processes for the time being. Time will tell if that will prove worthwhile and make the grade.

Wait, there's more!
There's always more at AccountingWEB. We're an active community of financial professionals and journalists who strive to bring you valuable content every day. If you'd like, let us know your interests and we'll send you a few articles every week either in taxation, practice excellence, or just our most popular stories from that week. It's free to sign up and to be a part of our community.
Premium content is currently locked

Editor's Choice

WHAT KIND OF FIRM ARE YOU?
As part of our continued effort to provide valuable resources and insight to our subscribers, we're conducting this brief survey to learn more about your personal experiences in the accounting profession. We will be giving away five $50 Amazon gift cards, and a $250 Amazon gift card to one lucky participant.
This is strictly for internal use and data will not be sold
or shared with any third parties.