Oil, Gas and Petrochemical Internal Audit College

This course is tailored specifically for oil, gas, and petrochemical companies and provides practical and valuable guidance on risk-based operational auditing. It teaches participants how to identify and prioritize the risks and assess the efficiency, effectiveness, and economics of both core and non-core business processes and provides practical exercises to help delegates gain confidence in the techniques presented and their ability to use them. Report writing is also explored to help delegates not only understand who Internal Audit’s stakeholders are but to help delegates get their messages across clearly and concisely. Delegates are given the opportunity to provide examples from their workplace for review and discussion.

Since oil and gas relies on the need for outside experts, the course also covers the requirements for reporting on the opinions of others. It explores areas such as walkthrough contracts that are necessary and risky when it comes to oil and gas companies. It also examines how oil and gas companies can still be ESG compliant and stand out from the competition.

Why you should take this course

For users with an introductory knowledge of this topic, and are searching for additional information and its application.

Here are the topics we'll cover.

1. Setting the Scene – Internal Auditing Today

   • Past, Present and Future Audit Expectations
   • Aligning Risks and Controls With Your Organization’s Business
   • Identifying and Working with Stakeholders
   • The Importance of Enterprise Risk Management (ERM)
   • Prioritizing Audit Results and Aligning them With Corporate and Enterprise Risk
   • Trends and Top Priorities for Internal Audit
   • Managing the 360-degree Perspective of Risks and opportunities (Reputation, Health, Safety, Environmental, Social and Ethical Risks)

2. Understanding Risk Management and Risk-Based Auditing

   • Key Risks and Enterprise Factors
   • Risk Assessment and Risk Management Tools
   • Operational vs. Traditional Auditing
   • Upstream vs. Midstream Considerations
   • Risk Management Terminology and The Key System Components
   • The Principles of Risk-Based Internal Auditing
   • IIA guidance and direction
   • The risk maturity framework
   • The 6 E’s: Efficiency, Effectiveness, Economics, Environment, Equity and Ethics.

3. Auditing the Procurement Function

   • Third Parties, Bidding, and Contracting
   • IT Audit Concerns
   • Procurement strategy
   • Identification of Core Purchasing Activities and Control Objectives
   • Vender Vetting, Selection/Pre-Qualifications
   • Tender Boards and Processes
   • Call-off orders
   • Segregation of Duties Controls
   • Weighted Scale Selection Criteria
   • Procurement Team Make-up
   • Kickbacks
   • Audit Program Topics

4. Auditing Inventory Management

   • Key Risks and Audit Objectives of Existence, Title, Accuracy and Realizable Value
   • Keys to effective inventory management
   • Policies, Procedures and Management Performance
   • Pressure, Volume, Temperature (PVT) Analysis
   • Using Analytical Procedures to Test Inventory
   • Stock Count
   • Estimating Intangible inventory
   • Use of Specialty Vendors to measure Inventory
   • Audit Program Topics

5. Auditing Major Contracts

   • Types of Contracts and Audits Required
   • Differentiating The Various Stages of Contract Life Cycle
   • Contract Management Risks
   • Key Areas for Fraudulent Activity
   • The Best Time to be Involved
   • How and When to Report Issues on Long-Term Projects
   • Audit Program Topics

6. Auditing Turnaround (Shutdown) Contracts

   • Definition and Key Considerations
   • Vendor Audits
   • Emergent Work and Accruals
   • Shutdown Maintenance Contracts
   • Key Areas for Fraud
   • Audit Program Topics

7. Auditing Governance and Ethics

   • The Importance of the Tone at the Top
   • Ethics and Governance Frameworks
   • Key risks
   • IIA Guidance on Auditing Organizational Governance
   • Ethics, Conflicts of Interest and Corruption
   • Illegal information brokers
   • Measuring Ethical Behaviors
   • Importance of and Managing the Fraud Hotline
   • Audit Program Topics

8. Auditing Health, Safety, and Environmental Management Systems

   • Internal Audit’s Role
   • Getting Buy-In from the Specialists
   • Health, Safety and Environmental Strategies
   • Adding Value: Audit’s Role and Sustainability Reporting
   • Audit Program Topics

9. Auditing Report Writing

   • Thinking about the Report From the Beginning of Fieldwork
   • Understanding Stakeholders and What They Want from Internal Audit
   • Structuring The Report and Audit Findings to Get the Message Across
   • Timing of Audit Reports and the Use of Interim Reports
   • Successful Audit Findings and Management Action Plans
   • Making Audit Reports Impactful
   • Ways to Improve the Process
   • Types of Reports

10. Auditing Projects

    • Project Management and Project Governance
    • The Different Roles of the Consultant and the Auditor
    • Life Cycle of an Oil and Gas Project
    • Tools, Reporting, and the Project Management Office (PMO)
    • Stakeholder Management
    • Benefits of Early Intervention
    • Fraud Hot Spots and Management /Corrective Actions When Errors or Fraud are Suspected
    • Corruption Auditing for Conflicts of Interest
    • Investment Appraisal Techniques
    • Vendor Risk and Identifying Key Vendors
    • Assessing Project Management, Monitoring and Control
    • Risk Management Considerations, Key Costs and Key Metrics

11. Auditing Joint Ventures

    • Understanding the Different Types of Joint Ventures (JV) Agreements and Types of Required Audits
    • Establishing Communication Channels
    • Determining the Specific Contractual Arrangements and the Extent of Audit Rights - Defining the Boundaries
    • Audit Clauses for JV Agreements
    • Identifying Sources of Information and Potential JV and Audit Sensitivities
    • Reliance of JV Audits, Information, and the Related Correlations to Internal Audit Work
    • Disclosure of Reliance on Outside Information
    • Audit Program Topics

12. Auditing Outsourced Operations

    • The Broadening Scope of Outsourced Activities
    • The Decision to Outsource and Strategic Implications
    • The Importance of Contractual Arrangements and Performance Measurements
    • The implications of Sarbanes Oxley and SAS 70s
    • Evaluating the Key Risks
    • Managing the Audit Protocols and Sensitivities
    • Fraud Schemes
    • Change Orders