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Auditing in the Oil & Gas Industry - Level 1 (FIN06)

  • To be announced for 2024


This introductory-level course provides a comprehensive overview of Auditing in the Exploration & Production (E&P) industry. It is suitable for professionals who want to gain a broader understanding of Upstream Oil & Gas Auditing – including joint venture, financial and contractual audits by government and regulatory authorities in the various granting regimes (Production Sharing Contracts, Risk Service Contracts, Concessionary).

Course Level: Foundation
Duration: 3 days
Instructor: Matilde Giulianelli

Designed for you, if you are...

  • Audit staff who are new or relatively new to the industry and who requires a grounding in the various aspects of E&P audit
  • Finance / accounting personnel involved in supporting audits
  • A professional from a wide range of other business functions who are connected to / impacted by audit, such as Supply Chain, Operations, Contracts Holders, IT, Tax and Treasury

Topics will be covered from both the perspective of being part of an audit team plus that of the team being audited. Therefore, the course will appeal to staff from IOC’s, NOC’s and those from Government and/or Regulatory Authorities.

How we build your confidence

This course is highly participative using a combination of instruction, group discussions and industry specific examples and exercises to ensure participants absorb both the theory and the practical application of the topics.

The benefits from attending

By the end of the course you will feel confident in your understanding of:

  • The unique features / key phases of the E&P business
  • General principles and objectives of the various types of upstream oil & gas audits
  • Adding value to your organisation by improving your audit techniques and auditing skills
  • The importance of following process in order to avoid costly audit related findings
  • Using industry specific examples and exercises, developing your understanding of the most common E&P industry audit issues


The Upstream Oil & Gas Business
  • Why is the upstream oil & gas business so different?
  • Key phases of the E&P field life cycle
  • A review of the most typical oil & gas agreements

Introduction to Joint Venture Audit / PSC Audit
  • The objectives and principles of JV and PSC audit
  • Understanding the skill set required of an auditor
  • Audit process
  • Risk - measuring / analysing audit risk

Audit Planning & Information Gathering
  • Responsibilities and objectives
  • Audit scope, duration and preparation
  • Interviewing and the Internal Control Questionnaire
  • Process review including use of flow-charts
  • Testing and Sampling

Audit Reporting
  • Key features of best practice audit reports
  • Audit documents & meetings
  • Audit follow-up

JV Audit Issues
  • General principles of the JV
  • Compliance / relevance checks:
    - Approval process
    - Budget / AFE compliance
    - Relevance of costs to JV
    - Contractual compliance
    - JV Funding

JV Audit Issues - Review of Specific JV Cost Categories
  • Drilling
  • Warehouse / materials
  • Shared / allocated costs - G&A
  • Shared / allocated costs - logistical support
  • Costs from affiliates, including PCO



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