Audit Team StructureLuke Scott – Scheme Audit and Assurance

How do you make up your audit team?

2

Assurance Engineer

Site Manager Peer Reviewer

Audit team

Audit team structure 31 March 2015NGER Audit Program 2014-15

Acceptance of engagement

• The audit team leader must ensure that the members of the audit team have between them the knowledge, skills and availability required to satisfactorily prepare for and carry out the audit and prepare the audit report.

• Audit teams may include assurance practitioners, engineers, environmental scientists and financial, legal, IT or corporate experts.

• If you do not have the expertise, do not accept the engagement.

331 March 2015NGER Audit Program 2014-15

Peer Reviewer• Equivalent or higher authority & experience to the audit team leader

• Expertise in assurance

• May be within, or external to the audit firm

• Involved from planning through to reporting

• Clear documentation of role and decisions

• Does not preclude the audit team leader from using expertise to review or assist with technical elements of the engagement

431 March 2015NGER Audit Program 2014-15

Number of audit team members

5

13

12

11

10

9

8

7

6

5

4

3

2

1

NGER

13

12

11

10

9

8

7

6

5

4

3

2

1

JCP/PEC

13

12

11

10

9

8

7

6

5

4

3

2

1

CFI

Includes Audit Team Leader, Peer Reviewer and all listed team members

13

12

11

10

9

8

7

6

5

4

3

2

1

CPM

31 March 2015NGER Audit Program 2014-15

NGER s19 Audit – Health Services

631 March 2015

Position In-house or Contractor Expertise %

Audit Team Leader In-house Category 3 RGEA, Partner, chartered accountant, expertise in NGER audit and assurance. 7

Engagement Manager In-house Chartered accountant, NGER audit specialist. 8

Engagement Senior In-house Chartered accountant, expertise in NGER audit and assurance, emissions and energy testing at site. 20

Principal Consultant External contractor Category 1 technical RGEA, Mechanical engineering 6

Technical Consultant External contractor Chemistry and Chemical Engineering. 35

Senior Consultant External contractor Chemical engineering, expertise in energy efficiency and compliance reporting. 21

Peer Reviewer In-house Category 2 RGEA, Partner, chartered accountant, expertise in NGER audit and assurance. 3

NGER Audit Program 2014-15

Scope 1 Fuel TypeCO2 - 74% Natural Gas – 35%CH4 - 10% Diesel Oil – 3%N2O - 10% Coal – 62 %SF6 - 1 %

NGER Report - Section 19 Scope 1: 2,000,000 t CO2-eScope 2: 800,000t CO2-eEnergy Production: 3,200,000 GJEnergy Consumption: 38, 000,000 GJ

How would you design your audit team?

7

Scope 1CO2 - 78%CH4 - 9%N2O - 12% SF6 - 1 %

• Metal manufacturing

• Mine operations

• Multiple facilities

• Rail and road transport

• Complex corporate structures

• Contracting / Lease arrangements

• Use of higher order methods

• Co-generation / Export electricity

• Steam production and consumption

31 March 2015NGER Audit Program 2014-15

NGER s19 Audit – Metal Manufacturing

8

Position In-house or Contractor Expertise %

Audit Team Leader In-house Category 3 RGEA, Partner, Engineering / Law 7

Engagement Manager In-house Chemical Engineering/ Science, MBA 17

Senior Consultant In-house Engineering / Commerce, carbon and energy specialisation 36

Technical Consultant In-house Science, oil, gas & mining specialisation 36

Peer Reviewer In-house Partner, chartered accountant, expertise in NGER audit and assurance. 4

31 March 2015NGER Audit Program 2014-15

Before selecting your audit team

• Do you have access to the right expertise to accept the engagement?

• Can you use contracting arrangements to gain this expertise?

• Do you have the right mix of technical experts and assurance peer review?

931 March 2015NGER Audit Program 2014-15

You can also email audit@cleanenergyregulator.gov.au or phone 1300 553 542.

Questions?Luke Scott