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An environmental audit is a systematic, documented, periodic, and objective evaluation of how well an organization is adhering to environmental laws, regulations, and standards. It also assesses how well the organization is managing its environmental responsibilities. The goal of an environmental audit is to ensure that the firm is minimizing its environmental impact, managing its resources efficiently, and improving its environmental performance in a sustainable manner.

The scope of an environmental audit includes not only the assessment of environmental compliance but also the analysis of the company's overall environmental performance, its policies, practices, and programs that affect the environment. The audit can focus on various areas, such as waste management, resource consumption (e.g., water, energy), emission of pollutants, and adherence to environmental laws and regulations. Essentially, it acts as a tool to identify areas where the firm can improve, reduce waste, increase energy efficiency, and minimize harmful impacts on the environment.

Environmental audits can be either internal or external. Internal audits are conducted by the organization’s staff, while external audits are carried out by independent third-party auditors. Independent audits are typically preferred when an organization needs to demonstrate compliance to regulatory bodies or stakeholders.

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