Strategies for internal auditors to expand their role in ESG assurance

This study examines how internal auditors strategically position themselves to enhance their influence over environmental, social, and governance (ESG) assurance amid Australia’s transition to mandatory climate-related reporting and assurance. Drawing on Resource Dependence Theory (RDT), we explore how internal auditors leverage their governance, risk, and compliance expertise as critical organisational resources to manage dependencies, build stakeholder trust, and align with evolving strategic and regulatory priorities. Through semi-structured interviews with chief audit executives, partners from leading internal audit service providers and external auditors, the findings reveal that internal auditors employ rhetorical and persuasive strategies to maintain relevance and engage boards and audit committees in ESG assurance processes. The analysis highlights how organisational ESG maturity and stakeholder salience influence the extent of internal audit involvement. The research also identifies the growing need for multidisciplinary collaboration in meeting emerging ESG assurance requirements. Situated within the Australian context, where voluntary ESG reporting practices are comparatively advanced, the study offers practical insights for management, boards, audit committees, regulators, and external auditors aiming to strengthen mandated ESG reporting and assurance by drawing on the strategic capabilities of the internal audit function.