What activity should internal audit perform to validate sustainability data?

What activity should internal audit perform to validate sustainability data?

• A. Increase the number of data fields
• B. Focus solely on narrative disclosures
• C. Test data source integrity and controls
• D. Ignore data lineage

Answer: (C)

Internal audit provides assurance by looking at how sustainability data are produced, focusing on data source integrity and the controls around data collection, processing, and reporting. Verifying that data originate in authorized systems, are complete and accurately calculated, and are reported in a timely manner with strong controls—such as reconciliations, access controls, and change management—helps ensure the numbers are trustworthy and not easily manipulated. Checking data lineage is essential because it shows exactly how figures move from source to disclosure, enabling traceability back to the origin and the transformations applied. Adding more data fields can complicate reporting without improving quality, while focusing only on narrative disclosures or ignoring data lineage leaves the quantitative backbone unverified. This approach provides robust assurance about the reliability of sustainability data.

Internal audit provides assurance by looking at how sustainability data are produced, focusing on data source integrity and the controls around data collection, processing, and reporting. Verifying that data originate in authorized systems, are complete and accurately calculated, and are reported in a timely manner with strong controls—such as reconciliations, access controls, and change management—helps ensure the numbers are trustworthy and not easily manipulated. Checking data lineage is essential because it shows exactly how figures move from source to disclosure, enabling traceability back to the origin and the transformations applied. Adding more data fields can complicate reporting without improving quality, while focusing only on narrative disclosures or ignoring data lineage leaves the quantitative backbone unverified. This approach provides robust assurance about the reliability of sustainability data.