Internal Audit in the Oil and Gas Industry: Risk-Based Assurance

Course overview

Course outline

1. 1Day 1: The Oil and Gas Business and Its Risks

   • Upstream, midstream and downstream operations explained for auditors
   • Key business, financial and operational risks in the energy sector
   • Regulatory, fiscal and HSE environment
   • Role of internal audit and the three lines model in energy companies
   • Building the audit universe for an oil and gas organisation
   • Workshop: Mapping risks across the value chain
2. 2Day 2: Risk-Based Audit Planning

   • Risk assessment methods for audit planning
   • Prioritising auditable entities and processes
   • Using data and analytics in planning
   • Coordinating with partners, regulators and external auditors
   • Resource planning and audit scheduling
   • Exercise: Drafting an annual audit plan
3. 3Day 3: Joint Ventures, Cost Recovery and Revenue

   • Joint operating agreements and partner audit rights
   • Cost recovery and production sharing audits
   • Hydrocarbon accounting and volume reconciliation
   • Revenue, lifting and marketing controls
   • Common findings in partner audits
   • Case study: Auditing a joint venture billing statement
4. 4Day 4: Contracts, Procurement and Operations

   • Auditing contract award and variations
   • Contractor invoicing and rate verification
   • Fraud red flags in oil and gas procurement
   • Inventory, materials and warehouse controls
   • Auditing asset integrity, maintenance and HSE processes
   • Practical exercise: Testing a drilling services contract
5. 5Day 5: Reporting and Adding Value

   • Writing clear, risk-focused audit findings
   • Root cause analysis and practical recommendations
   • Reporting to management and the audit committee
   • Follow-up and continuous auditing approaches
   • Quality assurance for the audit function
   • Capstone: Presenting a risk-based audit plan for your organisation