Research On The Role And Realization Path Of Internal Audit In Chinese Enterprise ESG

The national strategies of "creating an ecological civilization" and "carbon neutral," as well as the comprehensive application of green development,are all part of China’s development ideology.The national "green development" and "innovation-driven" strategies are all strongly aligned with the ESG(Environmental,Social,and Governance)ideals of environmental sustainability,social equality,and economic prosperity.Promoting the adoption of the ESG concept by Chinese businesses is consistent with the advancement of the times and national strategic goals on the one hand,and aids in the establishment of an ESG system with Chinese characteristics on the other.Relevant organizations have proposed appropriate ESG legislative requirements,encouraged and aided Chinese businesses in actively sharing ESG data,and encouraged central enterprises holding companies to take the initiative in publishing ESG special reports.The importance of internal audit as a key business strategic partner in corporate ESG cannot be understated in the context of an ESG system that is becoming more stringent.To get the US Securities and Exchange Commission to acknowledge the role internal audit plays in ESG management,the IIA(The Institute of Internal Auditors)published a white paper and wrote to it in 2021.Therefore,this paper conducts a study on the role played by internal audit in ESG and its realization path in Chinese enterprises,which is of reference value for the specific practice of internal audit participation in ESG management in enterprises in the future.This study is based on the current situation of ESG development in China.By researching the literature on internal audit and ESG,summarizing prior opinions,and fusing the "three-line model," comprehensive risk management theory,and sustainable development theory,this paper evaluates the study material.To assist businesses in avoiding ESG risks and achieving their strategic goals,we first assess from a theoretical standpoint how internal audit,as a third-line function,may contribute to ESG.We then offer a particular realization path for the role of internal audit.To validate the theoretical conclusions of the prior work,we use case studies to examine the specific scenario of internal audit’s involvement and function in the ESG management of firm A,which has a relatively well-developed ESG management system.This paper provides a detailed analysis of workable solutions to give enterprises specific implementation paths to help internal audit quickly realize its role in corporate ESG,based on the national ESG situation in China.It summarizes the role of internal audit in the ESG of Chinese enterprises from the perspective of internal audit’s participation and role in the ESG management process,combined with relevant overseas studies.It offers helpful advice and crucial references on how internal audits can contribute to the ESG management system of businesses.It also has reference value for the development and improvement of the ESG system of Chinese businesses as well as the future expansion of internal audit’s contribution to ESG.