Auditing in the Oil & Gas Industry

duration: 3 days
format: Virtual course
level: Intermediate
accreditation: CPD

$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

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