Diggitup plc is a quoted company heavily engaged in the waste disposal industry and engaged also in some open cast mining in land reclamation projects. The company sees itself as performing an unpleasant duty which the rest of the public is unwilling to do for itself. The company has inevitably acquired a reputation for being environmentally unfriendly and has noticed that the share price has fallen despite good profits and excellent prospects. They operate from their old freehold factory and offices on a site in a manufacturing estate in Wolverhampton which dates back to the nineteenth century.

Their plant is relatively old but is regularly maintained to a good standard. They have certification under ISO 9000 but not under ISO 14000. The auditors are Tickitt & Run who are aware that the company has asked for a loan from the bank to be secured on the freehold premises.

Discussion
– Suggest factors which may have caused the company’s reputation and fall in share price.
– Suggest an action programme for improving the company’s public image.
– What possible misstatements may occur in the financial statements as a result of environmental factors?
– How might the auditor approach the audit?
– Indicate some green policies the company may adopt.
– What environmental factors may affect the audit?
– How might Tickitt & Run incorporate environmental factors in their audit?