Auditing in the Oil & Gas Industry

format: Virtual course

duration: 3 days

level: Intermediate

accreditation: CPD

availability:

N/A

$1,799.00

This course will provide participants with an understanding of the principles and practices applied in auditing activities undertaken in the upstream oil and gas industry. Extensive use will be made of realistic industry based exercises and case studies to reinforce key teaching points and to provide participants with opportunities to apply the knowledge gained in a practical manner.

Participants will also learn how to develop and apply a structured methodology for conducting upstream oil industry internal, joint venture and Production Sharing Contracts (PSC) audits.

The course is designed for:

Personnel who are new to the discipline of audit
Experienced audit practitioners who wish to build on their auditing skills
Staff from any discipline who need to participate in internal, PSCs or joint-venture audits
Personnel with a background in statutory audit and/or accountancy who want insights into internal, PSCs and joint-venture audits

Course objectives

Learn how to apply a structured methodology to conduct three types of audits: oil industry internal, joint-venture and production-sharing
Implement the gains of a multi-discipline audit approach
Conduct audits according to a best practice model in the oil & gas industry’s activities

Day 1

Audit Principles, Audit Concepts, and Internal Audit

Audit origins, purposes, and types
Audit concepts
Internal audit

Audit Techniques

Audit preparation and planning
Risk assessment
Testing and sampling
Interviewing techniques
The audit report
Team management – to ensure resources are used effectively

Internal Audit

Developing a model of internal best practice
Contract audits
COPAS AG – 9 & 11

Day 2

The Joint Venture Audit Process

The audit cycle
Joint venture accounting procedure and audit rights
Multi-venture and contract audits

Joint Venture Operations and Typical Major Audit Issues

The cash account and areas requiring review at audit
Understanding unitization and redetermination and their implications for the joint venture audit
Audit of general and administrative costs
Review of Parent Company Overhead (PCO) provisions contained in the accounting procedure
Audit of various cost categories

Day 3

(PSC) Production-sharing Contracts Audit

Background
Key aspects of audit

General and Administrative Costs, Case Study, and PSC Audits

General and administrative costs, allocation to joint ventures, and parent company services
Joint venture case study
How a PSC audit differs to a joint venture audit