Auditing Process in Oil and Gas

Course Length: 5 days

Course Venue: Mombasa

Course Description

This is an intensive training programme designed to improve and enhance the skills of personnel involved in auditing
upstream exploration and production activities, concentrating on aspects of auditing that are unique to this industry.

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 joint venture and Production Sharing Contracts (PSC) audits.

Who Should Attend?

• External auditors dealing with oil and gas companies or those considering moving into such roles
• Internal auditors who work within oil and gas companies
• Management and Financial staff within such organisations that deal with the external audit process or who would like a better understanding of how the auditors go about their work.
• personnel who are new to the discipline of audit
• experienced audit practitioners who wish to update their auditing techniques
• personnel from any discipline who intend to take part in internal or joint-venture audits
• personnel with a background in statutory audit in the accountancy profession who want insights into internal and joint-venture audits.

What you will learn:

• How to apply a structured methodology for conducting oil industry internal, production-sharing and joint-venture audits
• How to implement the benefits of a multi-discipline team audit approach
• How to adopt a model of best practice for conducting audits
• How to apply a risk-based approach to audit
• How to investigate fraud

How will this Training Course be Presented?

Extensive use is made of realistic oil industry-based exercises and case studies to reinforce key teaching points and to provide delegates with opportunities to apply the knowledge gained in a practical and enjoyable format.

Course Outline

Day 1 – Understanding Oil and Gas Companies

• Oil and Gas Companies – understanding the industry and the risks
• Oil and gas value chain and significant accounting issues
• Upstream, midstream and downstream activities
• Laws and Regulations
• Emerging Risk Areas

Day 2 – Revenue, Joint Ventures and Reserves

• Revenue recognition – contracts
• Auditing shutdown management
• Auditing Joint Ventures
• Auditing outsourced operations
• Due diligence programs on third parties
• Reserves reporting issues

 Day 3 – Fraud, Impairment and Provisions

• Fraud, fraud prevention and detection
• Procurement issues
• An effective internal audit function in oil and gas companies
• Operational audits
• Decommissioning and environmental provisions
• Non-current assets and impairment