Environmental Audit and Compliance
The Role of Audit Policies in Inducing Audit Adoption and Compliance Behavior
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Compliance with environmental regulations in the US hastraditionally been enforced through a system of monitoring andpenalties. While the system has resulted in environmentalimprovement in air quality, violations of the Clean Air Act stilloccur. This book evaluates the effectiveness of environmentalauditing and audit policies in the US in inducing compliancebehavior of the firms. We find facilities that self-audit are morelikely to be and stay longer in compliance with Clean Air Actregulations. Audit privilege and immunity policies have significantand opposite effects on facilities. While audi...
Compliance with environmental regulations in the US hastraditionally been enforced through a system of monitoring andpenalties. While the system has resulted in environmentalimprovement in air quality, violations of the Clean Air Act stilloccur. This book evaluates the effectiveness of environmentalauditing and audit policies in the US in inducing compliancebehavior of the firms. We find facilities that self-audit are morelikely to be and stay longer in compliance with Clean Air Actregulations. Audit privilege and immunity policies have significantand opposite effects on facilities. While audit privilege policiesreduce incentives for compliance, audit immunity policiessignificantly increase them, particularly for firms that have highcosts of abatement and would otherwise have a higher likelihood ofbeing in violation.
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