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Internal Audit IT Audit Info Security
Internal Audit IT Audit Info Security
Auditing for Oil, Gas and Petrochemicals - OAP228 
Risk-Based and Leading-Edge Operational Auditing Techniques for the Oil and Gas Industry
Learning Level: Intermediate
CPEs: 24 Fee: $2,095.00
Focus and Features Agenda Who Should Attend Register

What You Will Learn:

1. Setting the Scene – Internal Auditing Today
 - Overview of the oil and gas industry
 - Identifying specific processes unique to the industry
 - Definition of terms and concepts used within this business segment
 - Class Exercise: Major Challenges in the Oil and Gas Industry

2. Examining the Risk Profile of Oil and Gas Companies
 - Understanding types of ownership interests
 - Developing a risk register relevant for oil and gas companies
 - Understanding management tolerances and thresholds for components of the risk register
 - Determining residual risk associated with items on the risk register
 - Class Exercise: Identifying and quantifying residual risk

3. The Fundamentals of Accounting Methods for Oil and Gas Companies
 - Successful efforts method
 - Full cost method
 - Property identification and unitization
 - Capitalization rules and pre-development expenses
 - Productive vs. unproductive issues
 - Accounting records
 - Accounting methods for joint operating agreements
 - Class Exercise: Highest risk fundamental accounting methods

4. Dissecting Risks Associated with Typical Areas of an Oil and Gas Company
 - Gross income
 - Lease bonus
 - Royalty income
 - Advance royalties, minimum royalties and shut in royalties
 - Production payments
 - Damages

5. Auditing Techniques – Geological and Geophysical Costs
 - Leasehold costs
 - Geological and Geophysical costs
 - Abandonment costs
 - Non-productive properties

6. Auditing Techniques – Leases and Leasehold Costs
 - Leases and mineral deeds and related operating expense
 - Contractual considerations
 - Bad debt (joint interest)
 - Intangible drilling costs
 - General leasehold costs
 - Evaluating lease payments
 - Lease and well equipment (tangible equipment costs)
 - Economic interest
 - Class Exercise: Develop risk matrix approach to identifying most significant areas to audit

7. Auditing Major Contracts
 - Understanding the different types of contracts
 - Differentiation between the key stages of contract life cycle
 - Reviewing generic contract management risks
 - Recognizing the key areas for fraudulent activity
 - Identifying the best time to be involved
 - Class Exercise: Contract threats, opportunities and variable vs. fixed priced contracts

8. Understanding the Maturity Life Cycle
 - Life cycle overview and considerations
 - Developing a life cycle approach for various audits
 - Examining applicability of life cycle approach to specific areas such as leases and joint ventures
 - Class Exercise: Life Cycle Matrix

9. Auditing Joint Venture Agreements
 - Understanding the different types of joint venture agreements and the types of audits that may be appropriate
 - Determining the specific contractual arrangements and the extent of the audit rights/defining the boundaries
 - Identifying sources of information and any potential joint venture audit sensitivities
 - Operator risks vs. joint owner risks
 - Contractor risks
 - Contractual risks
 - Accounting and billing
 - Class Exercise: Developing a risk matrix for a joint venture company

10. Auditing Health, Safety, and Environmental Management
 - Health, safety, and environmental strategies
 - Auditing the management systems
 - Adding value: audit’s role and sustainability reporting
 - Identifying key performance indicators for an oil refinery

For questions about your registration, government and team discounts, or multiple registrations, please call Linda Ronconi at (508) 879-7999, ext. 501 or e-mail

This seminar is available in-house. For more information about bringing this or other MISTI seminars to your organization, please call Mimi Hatch at (410) 692-2465 or e-mail

April 20 - 22, 2015
October 26 - 28, 2015