Document Type

Working Paper

Date of This Version



sustainability audits, internal auditing code of conduct, risk assessment

JEL Classification

G32, M4


An increasing number of organizations engage in sustainability reporting to the public. However, assurance of this disclosure is relatively new. In this study we investigate corporate codes of ethics and risk assessment by internal auditors as correlates of organizations’ engaging their internal audit functions (IAFs) in sustainability audits. Using data from a large sample of chief audit executives (CAEs) we find significant and positive associations between code of conduct and risk assessment and sustainability audits by IAFs. Also, we find positive and significant association between industry (environmentally sensitive vs. others), CAE experience, and CAE major (accounting vs. others) and sustainability audits by IAFs. Other control variables (organization size, CAE grad/undergrad degrees, and CAEcpe do not indicate significance in their association with sustainability audits by IAFs. These results have implications for design of sustainability reporting by various organizations and assurance of such reporting by internal auditors.

Working Paper Number