Internal Audit in Projects under the Influence of ESG Aspects with a Focus on Sustainability Reporting

Table of Contents

1 Introduction

1.1 Background and Problem Description

1.2 State of Research

1.3 Research Gap and Research Question

1.4 Objective and Limitation

1.5 Research Method

2 Project Management Standards

3 Internal Audit

3.1 Terminology and Delimitation

3.2 Internal Audit Characteristics

4 Project Audit

4.1 Definition and Characteristics of project auditing

4.2 Project Audit of conventional projects

4.3 Project Revision of Agile Projects

5 Sustainability Aspects in Internal Project Audit

5.1 Background - ESG Development

5.2 Sustainability Reporting

5.2.1 EU Taxonomy

5.2.2 CSRD Reporting

5.2.3 ESRS – European Sustainability Reporting Standards

5.3 ESG in Internal Audit

5.4 ESG Implications for Project Audits

6 Empirical investigations

6.1 Case Study

6.1.1 Case Study – Object (Single Case)

6.1.2 The Company – test object

6.1.3 Corporate Audit

6.2 Data collection and Analysis

6.3 Summary

7 New approaches in internal auditing

7.1 General implications for internal auditing

7.2 Implications for project audits

Objectives and Topics

The primary objective of this research is to analyze the influence of new sustainability reporting standards and related ESG risks on internal auditing and to determine how these can be integrated into the auditing of projects, ultimately deriving revised audit methods.

• Analysis of ESG integration within internal audit processes.
• Evaluation of deficiencies in current project audit approaches regarding ESG.
• Development of concepts for integrating sustainability metrics into internal project auditing.
• Examination of the relationship between corporate, project, and environmental reporting levels.
• Assessment of the role of internal audit as a change agent in sustainability transitions.

Excerpt from the Book

Summary of Chapters

1 Introduction: Provides the research background, defines the problem, presents the state of research, and outlines the research method regarding the internal auditing of projects.

2 Project Management Standards: Offers basic definitions of project management using the waterfall model as a foundational support for subsequent audit discussions.

3 Internal Audit: Establishes a theoretical foundation by covering fundamental audit standards, terminology, and characteristics essential for experienced auditors.

4 Project Audit: Explores the auditing of projects by linking project management standards with the DIIR Auditing Standard No. 4 and examines specific approaches for conventional and agile projects.

5 Sustainability Aspects in Internal Project Audit: Details the integration of ESG criteria, sustainability reporting requirements such as the EU Taxonomy and CSRD, and their specific implications for the internal audit function.

6 Empirical investigations: Documents the qualitative single case study conducted to verify the research hypothesis based on real-world IT audit system data and practices.

7 New approaches in internal auditing: Proposes strategic adjustments, educational needs, and recommendations for internal audit departments to adapt to the new sustainability-driven landscape.

Keywords

Internal Audit, ESG, Sustainability Reporting, Project Audit, CSRD, ESRS, EU Taxonomy, ESG Risks, Corporate Governance, Internal Control System, Project Management, Sustainability Audit, Reporting Standards, Audit Universe, Risk Management.

Frequently Asked Questions

What is the core focus of this research?

The research focuses on the intersection of project auditing and the emerging requirements of sustainability reporting (ESG), aiming to clarify how internal audit functions can adapt to these new regulatory demands.

What are the primary thematic areas covered?

The key themes include the evolution of project management standards, the framework of internal auditing, the specific requirements of the EU Taxonomy and CSRD reporting, and the practical application of these in project-level data collection.

What is the ultimate goal or research question?

The core research question addresses how ESG influences internal auditing under the focus of sustainability reporting and how these elements can be effectively integrated into the auditing of projects.

Which scientific methodology is utilized?

The work employs a qualitative research paradigm, conducting a comprehensive literature review followed by a deductive single case study involving the analysis of archival audit data and expert insights.

What topics are addressed in the main body of the work?

The main body covers definitions of project auditing, detailed explanations of ESRS standards, an empirical case study of an organization's audit practices, and proposed new approaches for internal audit departments.

Which keywords best characterize the work?

The study is characterized by terms such as Internal Audit, ESG, Sustainability Reporting, CSRD, and Project Audit, reflecting its focus on regulatory and professional developments in auditing.

How does the introduction of CSRD change the audit object for companies?

The CSRD mandates a substantive audit of sustainability reports, which effectively forces companies to expand their internal governance and audit systems to include ESG risks and ensure data traceability previously not required on this scale.

Why is the "Audit IT System" significant for this research?

The audit IT system serves as the data basis for the empirical study, allowing the researcher to evaluate actual, pre-formulated audit checklists and determine the extent to which they currently map to ESG-relevant data points.