7E's

ACCOUNTING 326
OPERATIONS AUDITING

7E's: E ology
Group Members:

Marianito, Zarah Belle

Rosellosa, Jhaser

Ruiz, Cherryjane

Ecology
 7E's
I HOW THEY IMPACT ORGANIZATIONAL SUCCESS.
GIVE A SAMPLE COMPANY (LOCAL OR INTERNATIONAL)

One of the major problems facing humanity

today is unsustainable consumption. Companies
may mobilize incomparable amounts of human,
physical, and financial capital, frequently manage
substantial land holdings, and access resources
and produce goods that have an effect on a wide
range of ecosystems. As such, businesses have
the ability to significantly contribute to stopping
the loss of biodiversity and ecological services.

One sample company that we chose is the IKEA.

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 7E's
I HOW THEY IMPACT ORGANIZATIONAL SUCCESS.
GIVE A SAMPLE COMPANY (LOCAL OR INTERNATIONAL)

IKEA, a home goods company with more than 300 locations

worldwide and the largest furniture seller in the world at the
beginning of the twenty-first century, aspires to make
sustainable and healthier living simple. IKEA served as an
excellent example of a corporation that cared about the
environment both within and outside the workplace. After
switching to energy-efficient LEDs for all of IKEA's lighting needs,
the company is now working to use only renewable energy for
all of its operations and those of its direct suppliers.They are also
emphasizing the use of more environmentally friendly materials
in their products. They pledge to use solely recycled and
renewable materials by 2030 and to lower IKEA's overall carbon
footprint by an average of 70% each product. Additionally, all
IKEA stores globally totally phased out single-use plastic

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products by the year 2020. This applies to items like plates,
freezer bags, and straws. 2
 7E's
I HOW THEY IMPACT ORGANIZATIONAL SUCCESS.
GIVE A SAMPLE COMPANY (LOCAL OR INTERNATIONAL)

IKEA's environmental initiatives also benefit

the neighborhood. IKEA is collaborating with the
municipality of Helsingborg in its home country of
Sweden on a green community project called H22
that includes housing, retail, and agriculture. IKEA
will assist in establishing an urban farming market in
the Swedish suburb of Drottninghög with the goal of
upskilling locals and generating new employment
opportunities and enterprises. In the neighborhood
of Fredriksdalsskogen, IKEA will also build an
outdoor camping area equipped with a self-
sufficient water and energy system and made of
sustainable materials.

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 7E's
II EXPLAIN HOW TO INCORPORATE THE ASSIGNED E IN AN
IA'S ANNUAL PERFORMANCE REPORTING
HIGHLIGHTING IMPROVEMENTS WITHIN THE
ORGANIZATION.

Environmental issues are rapidly changing,

with high-ranking executives and governing
bodies struggling to comprehend and accept the
idea. Activist investor groups and inquisitive
regulators are pressing for change. Pressure on
firms to publicly declare their commitment to
sustainability and to regularly update their
ecologically-related plans, targets, and
indicators is at the forefront of this new risk
sector.

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 7E's
II EXPLAIN HOW TO INCORPORATE THE ASSIGNED E IN AN
IA'S ANNUAL PERFORMANCE REPORTING
HIGHLIGHTING IMPROVEMENTS WITHIN THE
ORGANIZATION.

Internal audit should be prepared to provide the governing body

and management with unbiased assurance, insights, and
recommendations in any risk area. Internal audit may and ought to be a
key component of an organization's environmental journey. By
assisting in the identification and creation of an effective ecological
control environment, it can be valuable as an advisor. It can also
provide crucial assurance support by conducting an independent and
objective evaluation of the effectiveness of ecological risk
assessments, actions, and controls. As risks associated with ecology
become more evident and prevalent in decision-making by the
governing body and executive management, directors must have
reliable assurance on the effectiveness of ecological risk

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management, including ecological reporting. That assurance should
come from internal audit. 2
 7E's
II EXPLAIN HOW TO INCORPORATE THE ASSIGNED E IN AN
IA'S ANNUAL PERFORMANCE REPORTING
HIGHLIGHTING IMPROVEMENTS WITHIN THE
ORGANIZATION.

Assurance over ecological reporting should include at

minimum the following components, which a properly
funded,qualified, and independent internal audit function can
provide:

• Review reporting metrics for relevancy, accuracy, timeliness, and

consistency. All publicly available sustainability reports must provide
details that fairly represent an organization's ecological efforts. The
accuracy, relevance, completeness, and timeliness of reported data,
both quantitative and qualitative, can be confirmed by internal audit.
This is especially crucial when regulatory oversight expands.

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 7E's
II EXPLAIN HOW TO INCORPORATE THE ASSIGNED E IN AN
IA'S ANNUAL PERFORMANCE REPORTING
HIGHLIGHTING IMPROVEMENTS WITHIN THE
ORGANIZATION.

• Review reporting for consistency with formal financial disclosure

filings. While sustainability reporting offers non-financial data,
authorities and investors will be skeptical of any information that
contradicts official financial disclosures.

• Conduct materiality or risk assessments on ecological reporting.

Organizations sometimes have difficulty defining and reporting what is
"material" and the concept of "materiality" leaves a lot up to particular
organizations' interpretation and judgment. However, organizations
must have a clear understanding on how ongoing sustainability efforts
or public commitments to reaching sustainability goals can rise to the
level of materiality.

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 7E's
III EXPLAIN HOW DOES THE ASSIGNED E
AFFECT THE IA DEPARTMENT IN TERMS OF
SETTING GOALS AND METRICS.

Ecology is significant in the internal audit

department since it is one of the 7E
frameworks that will assist them in searching
for ways to provide value to their organizations.
It affects the IA department in terms of setting
goals and metrics by:

• Beyond compliance, ecological awareness

and stewardship can also have a positive
impact on the organization's profitability.
The internal audit department can make use
of its ecological awareness in order to minimize
costs and maximize profits, and of course,

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achieve its short and long term goals.
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 7E's
III EXPLAIN HOW DOES THE ASSIGNED E
AFFECT THE IA DEPARTMENT IN TERMS OF
SETTING GOALS AND METRICS.

• Metrics related to ecology helped drive

appropriate behaviors and provide a means
to analyze, compare benchmark, and improve
results.
The internal audit department will be able to
assess their organization's performance and
then make appropriate conclusions about what
measures are required to maintain or improve
their environmental sensitivity.

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 7E's
IV GIVE AN EXAMPLE OF HOW YOUR ASSIGNED E CAN
BE USED WHEN PERFORMING A SITE VISIT REVIEW.

Site visit reviews are often conducted to

perform walkthroughs to the production process of
an organization. It is also done to inspect internal
and physical controls and monitor activities.

Best example of how Ecology can be used when

performing a site visit review is:

Having a clear plant-wide imposition on limiting the

usage of water, lowering electricity consumption, and
minimizing wastes.

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 7E's
ACCOUNTING 326
OPERATIONS AUDITING

Thank you
for listening!

Ecology