Leading audits is just the start of how we can help your company. From strategy formulation through to the development of risk and assurance plans, we navigate through the complexity and offer clear, independent and actionable advice.
Bringing clarity and focus to each engagement
Our team has extensive experience leading Joint Venture Audits both in Australia and overseas. We’ve been relied on to lead audits of some of Australia’s most prominent LNG projects and operations including Browse, North-West Shelf, Wheatstone, Vincent Enfield, Bass Strait and PNG LNG. We have an established track record in audits across the full value chain of exploration, appraisal, development, production and decommissioning. As Lead Auditors we are actively involved every step of the way, from strategy setting and planning through to the reporting and rebuttal phase. We are intensely focused on every detail and our robust approach ensures that all audit findings raised are underpinned by irrefutable evidence.
Our audit findings are supported with reference to relevant provisions of the Joint Operating Agreement, Accounting Procedure and petroleum industry guidelines (COPAS, SOAP and APPEA). Audit findings frequently result in positive financial recoveries for our clients and improvements in Operators’ processes and controls.
Prior experience has shown that the following areas warrant detailed attention:
Third Party Expenditure
Contract Compliance
Discounts & Rebates
Allocation of Affiliate Charges
Timewriting
Overhead Charges
Drilling Activity
Inventory Management
Redundancy Payments
Logistics Allocations
Our Joint Venture Audit Methodology
A successful audit starts with strategy setting. We work closely with you to understand your key concerns and risk areas to map out our approach. Once we have agreed the strategy, we begin formulating a detailed audit plan.
Setting Audit
Strategy
Audit planning starts with a detailed assessment of the risks, and this is integrated with a deep analysis of the transaction data, using various data analytics tools at our disposal. This culminates in developing the Terms of Reference and selection of the audit sample.
Audit
Planning
We execute the well formulated audit plan during fieldwork to gather and evaluate audit evidence to ensure audit objectives are achieved. Our audit testing is a robust deep dive on the risks identified. We challenge assertions made by Operator and ensure that audit findings are supported with conclusive evidence.
Audit
Fieldwork
After fieldwork, we work with Operator to close out any open audit queries and then finalise drafting of the audit report. We communicate all findings to you and to Operator prior to issuing the final report. We also support you in drafting audit rebuttals to Operator responses.
Audit Reporting
and follow-up
We provide support to Operators hosting Joint Venture Audits. Supporting the audit process from planning and fieldwork to the reporting phase. During audit fieldwork, we assist in providing responses to audit queries and to preliminary audit findings. Once the Audit Report is issued, we aid our client in drafting a response.
To ensure consistency to the process and outcomes, we apply the same methodology to drafting a response as we do to performing the audit. Our deep knowledge ensures the audit process is completed efficiently and effectively, with all parties seeing the value in our involvement.
Our team has extensive capability and experience in establishing company-wide strategy, planning and execution of contract audits in the oil and gas industry, both on major capital projects (such as the Wheatstone and Gorgon LNG projects) and established operations. We assist in identifying the relevant contracts that have risk exposures, to develop a high-graded contract audit program.
The key benefits of performing contract audits are:
Assurance over sampled expenditure
Assurance over contract management
Verification of payments, processes & controls
Recovery from agreed monetary audit findings
Improvements in contract performance
Every contract is unique, and we take a meticulous approach to each audit. Performing targeted testing using data analytics tools and techniques to perform our audit fieldwork efficiently and exhaustively. This analytical approach, coupled with our extensive contract audit and industry experience in identifying errors and overcharges, enables us to deliver tangible audit results and outcomes to your company.
We are experienced in all types of contracts used in the phases of the Oil and Gas lifecycle. These include Drill Rig and associated support services, Engineer Procure Construction Management (EPCM) contracts and sub-contracts during the construction phase, Integrated Engineering and Maintenance contracts, and Risk Based Inspection (RBI) contracts. These audits cover time and material, unit cost as well as cost reimbursable models. Our detailed and robust audit approach ensures that all contract expenditure is reviewed and tested in a manner that will identify any potential errors or overcharges.
Our skills and industry experience give your company valuable insights and strategies on how to effectively integrate and embed risk management into your business activities and decision-making processes. Utilising the Three Lines of Defence model, we can assist with [first line] risk identification and assessments, [second line] assurance reviews and [third line] internal audit services.
We support your company by implementing, reviewing or updating your risk management framework per ISO31000. This includes collaboratively developing risk policies, procedures, processes, tools and templates. We can also assist with building risk management capability through coaching and training.
Our team has significant direct experience in the internal audit functions of large oil & gas and mining companies, having previously worked in-house in these roles. We can assist your company in establishing an internal audit function and performing various internal audit or assurance reviews, including financial processes, contract management, and project assurance/readiness reviews.
We have over two decades of experience in delivering tailored training courses to meet the resources and energy sectors development needs. Your team will come away with contemporary knowledge and tangible skills that can be immediately implemented in your workplace.
We have delivered the following courses in Australia and internationally.
Financial Reporting in the Oil & Gas industry
Joint Venture Accounting in the Oil & Gas industry
Joint Venture Auditing in the Oil & Gas industry
Hosting Joint Venture Audits in the Oil & Gas industry
Oil & Gas Economics
Accounting for Non-Accountants
Accounting & Financial Management for Non-Accountants
Corporate Finance & Financial Management
For a customised course to meet your specific needs, contact us to find out how we can add value.
