Integrating Digital Cost Audit With Environmental Management: a Pathway To Sustainable Business Performance of Manufacturing Companies in Medan
Keywords:
: Digital Cost Audit, Environmental Management, Sustainability, ESG, Green Accounting, Manufacturing, IndonesiaAbstract
The integration of digital cost audit and environmental management represents a strategic innovation in achieving sustainable business performance. This study explores how digital technologies such as cloud-based audit systems, artificial intelligence, and data analytics enhance the efficiency, transparency, and environmental accountability of cost auditing processes [1][2]. Using a mixed-method approach, data are collected from 12 manufacturing companies in Medan that have implemented green accounting practices. The findings indicate that digital cost audit tools significantly improve cost traceability by 71%, reduce human error by 62%, and facilitate real-time monitoring of environmental costs across operational categories [3]. Moreover, digital audit integration strengthens environmental compliance to 92% and supports comprehensive sustainability reporting aligned with ESG (Environmental, Social, and Governance) frameworks [4]. This research contributes to the growing discourse on digital transformation in accounting by demonstrating how technology-driven cost auditing can bridge financial efficiency with ecological responsibility, establishing a viable pathway toward greener and smarter corporate governance in manufacturing industries [5].
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