The Design Of Carbon Audit Process And State Gride Co. As Example

These years, the occurrence of global warming and severe weather is on the rise, which is the result of large-scale greenhouse gas emission. Countries all around the world are committed to fixing this problem. As the Emission Trading came along with the Kyoto Protocol’s solution to this problem in 1997, countries and areas have been devoting to developing the Emission Trade Market. China, the world’s top greenhouse gas emitter, plays an important role in controlling global warming. In 2011, China approved Emission Trade Market in seven provinces and municipalities, such as Beijing, Tianjin, Shanghai, and Chongqing. The development of the carbon market depends on the carbon audit.Nowadays, as consumers are becoming aware of the importance of environmental protection, the low carbon footprint products become more popular with people. Consumers always check carbon labels to judge whether goods are low carbon footprint products or not. In addition, carbon labels’audit depends on carbon audit. In a word, carbon audit has great influence on keeping the low-carbon economy to run in rule, which makes it so important and necessary.However, the theoretical research of carbon audit starts late in China, which is still in the preliminary stage, and there is no standard for carbon audit in practice. Therefore, our top priority is to improve carbon audit organization system to guide the practice run in order, such as to design carbon audit process.In accordance with existing practice, carbon audit object is often just a single target enterprise. However, if we want to reduce greenhouse emission, we have to pay attention to the carbon emission of supply chain. The carbon emission from the supply chain couldn’t be ignored. It is obvious that the poor cooperation between upstream and downstream enterprises from the supply chain will lead to higher carbon emission.Therefore, from the perspective of supply chain, referring to the certified public accountants audit process and the third party inspection guide, this paper designed the general process for certified public accountants to carry out the carbon audit in our country. After summarizing other studies, the paper designed an audit process in logic, and it claims to put supply chain information about carbon emissions into the carbon audit scope. In the end, it analyzes the case of the State Grid Co. to test the designed process.Carbon audit process, designed in this paper, has four main stages:plan preparation stage, after some necessary research, the accounting firm signs carbon audit contract with the enterprise, and then sets out to develop carbon audit plan; Execution stage, the auditors follow the audit plan and perform the audit procedures, collect audit evidence, and calculate the carbon emissions information; Report stage, the auditors make sure that they have collected enough and proper evidences to develop audit opinions, show audit advices and issue the audit report; Follow-up audit, in order to ensure the implementation of audit recommendations and improve the efficiency of the continuous audit implementation, the auditor execute follow-up audit, but it is not suitable for all carbon audit project.The State Grid Co. plays significant role in the Chinese gross carbon emission and it has advanced awareness of reducing carbon emission, so analysis of the State Grid can be meaningful to this article.