Human activities cause climate change by increasing greenhouse gas emissions. Local and global communities have struggled to find a way for corporations to reduce greenhouse gases. As climate emergencies and carbon mitigation become crucial, organizations urge situation to link their environment and sustainability activities to their strategy and management control system representation. Businesses should prioritize revenue and environmental effects equally. Carbon accounting in companies can reduce carbon emissions and provide valuable insights into emission reduction efforts. This study explored the influence of organizational involvement and risk management on carbon Accounting moderated by Internal Audit Functions. This research was conducted using a survey method to gather information from organizations registered under the Federation of Malaysian Manufacturers that obtained ISO14000 status. The moderating impact of internal audits on carbon accounting was also studied in this research. Conducted an online questionnaire survey among firms registered with the Federation of Malaysian Manufacturers to evaluate their ISO 14001 status and collected 150 valid responses. Organizational involvement and risk management in carbon accounting have been demonstrated as statistically significant. Internal audits moderate the relationship between organizational involvement and carbon accounting differently. Findings and conclusion of the research will enhance the strategy for industry players and help policymakers develop relevant policies.