Operational Audit for Oil, Gas and Petrochemical Companies

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Operational Audit for Oil, Gas and P 19-23 April 2010, Hong Kong FOCUS AND FEATURES This five day course tailored specifically for oil, gas and petrochemical companies provides practical and valuable guidance on risk based operational auditing and leading edge techniques in auditing. It teaches participants how to identify and prioritise the risks and assess the efficiency, effectiveness and economics of both core and non core business processes providing practical exercises to help delegates gain confidence in the techniques presented and in their own ability to use them. Auditing non core activities can be very difficult. The associated risks to business objectives are often less well known and are new territory for the business as well as for the internal auditors. Auditing major contracts, for example shutdown contracts, and outsourced operations are explored in detail. This will provide delegates with insights from practical experience on where the efficiency, effectiveness and value might not be realised as well as highlighting key areas to focus on to ensure that key risks are being appropriately managed and the risk of fraud minimised. Delegates are provided with the opportunity to review the challenges for Internal Audit in its approach to and involvement with risk management and the role internal audit can play in facilitating risk management within their organisations. Participants will learn the benefits that risk based auditing can have in focusing auditing effort on the risks that threaten the achievement of business objectives and how to reflect and prioritise risk in their audit reports. Through participating in discussions, exchanging ideas and reviewing case studies of real life examples, delegates will gain the knowledge and confidence to employ their new skills back in the workplace. Day 1 Registration commences at 8:30 Programme runs from 9:00 - 5:00 daily Course introduction and overview Setting the scene - internal auditing (IA) today Understanding the importance of enterprise risk management Leading edge trends and top priorities for internal audit Class discussion: issues and challenges for IA and for the sector Identifying the overall assurance framework for all activities Managing the 360 degree perspective of risks and opportunities (reputation, health, safety, environmental, social and ethical risks) Exercise: identifying where internal audit is positioned in your company Understanding risk management and risk based auditing? Risk management terminology and the key system components An introduction to the principles of risk based internal auditing IIA guidance and direction The risk maturity framework Case studies: example risk evaluation process, example risk registers for a global oil, gas and petrochemical company and risk profile for an oil company Exercise: Identifying the risk maturity of your organisation The fundamentals of operational auditing Understanding the differences between operational and traditional auditing The 6 E s - efficiency, effectiveness, economics, equity, ethics and the environment Exercises: brainstorming risks and understanding learning styles Day 2 Facilitating risk identification workshops Understanding the differences between presenting and facilitating Facilitation techniques and top tips Handling difficult situations Exercise: facilitating a risk identification workshop Fraud awareness Identifying internal audit’s role Why fraud happens Profiling the fraudster High-potential areas for fraud occurrence Indicators of potential fraud - red flags Using the computer to detect fraud Auditing the procurement function Procurement strategy Identification of the core purchasing activities and control objectives Vender selection/pre-qualification Tender boards and processes Call-off orders Segregation of duties controls Case study: sustainable development principles and procurement policy for an oil company Exercise: identifying the key risks in the requisition to payment process Exercise: segregation of duties template tailored for a chemicals company Day 3 Auditing inventory management Setting out the key risks The primary audit objectives of existence, title, accuracy and realisable value Keys to effective inventory management Policies, procedures and management performance Using analytical procedures to test inventory The importance of the stock count Exercise: auditing the valuation process © Copyright Euromoney Training 2010 Biography Lin Bartlett Lin is the director of a management consultancy firm established in 2000 specialising in interim finance management, training, risk management, business controls and auditing of financial and non-financial reporting. During her career with Shell, Lin held a number of senior management roles in IT, Finance and Audit. As Shell UK’s Integrated Audit manager, she developed and gained board approval for a risk-based integrated audit planning and management process, establishing integrated audit plans for all key business areas. She is a trained auditor Find out more or register your place today! Web www.mistiasia.com in financial, IT, health, safety, environment and quality management and planned and managed major audits in many different parts of Shell’s business including upstream, downstream, gas and chemicals. In 2003 Lin successfully helped establish a new company to challenge the sustainability assurance offering in the marketplace and to raise the standard of assurance and verification of non- financial reporting available and has subsequently provided assurance and verification services to a number of blue chip companies. During 2005, Lin was engaged on a global Sarbanes Oxley 404 compliance implementation project for a FTSE 100 company. Lin was responsible for both the global project planning and management support and also the management of a team responsible for documenting risks and controls over financial reporting for their European business. More recently Lin has been engaged on External Quality Assessments (EQAs) as required by the Institute of Internal Auditor’s International Standards for the Professional
etrochemical Companies Auditing major contracts Understanding the different types of contract and audits required Differentiating between the various key stages of contract life cycle Reviewing generic contract management risks Recognising the key areas for fraudulent activity Identifying the best time to be involved Exercise: brainstorming contract threats and opportunities for oil company related major contract types Auditing shutdown management Vender audits Emergent work and accruals Shutdown maintenance contracts Key areas for fraud Case study: contract fraud Day 4 Auditing governance and ethics The importance of the “tone at the top” Identifying the ethics and governance framework and key risks IIA Guidance on auditing organisational governance Assessing alignment with organisational values and goals Ethics, conflicts of interest and corruption Illegal information brokers Exercise: auditing ethics and compliance Exercises: Ethical dilemmas Case study: code of ethics for an oil and gas company Auditing health, safety and environmental management Confirming internal audit’s role Getting buy-in from the specialists Health, safety and environmental strategies Auditing the management systems Adding value: audit’s role and sustainability reporting Case studies: key performance indicators for an oil refinery Exercise: developing the audit objective and terms of reference Day 5 Auditing projects What constitutes a project? Why does internal audit get involved? Recognising the differences in roles between the consultant and the auditor Determining the key stakeholders, project governance framework and key performance indicators Assessing project management, monitoring and control Identifying the key risks and opportunities Exercise: developing a test plan for a project audit case study Auditing joint ventures The change in position from an internal auditor to an external auditor and the different challenges the change in role presents Understanding the different types of joint ventures agreements and types of audit that may be required Establishing communications Determining the specific contractual arrangements and the extent of audit rights/defining the boundaries Identifying sources of information and any potential JV and audit sensitivities Confirming the corporate governance and operational framework and standards Identifying opportunities to place reliance on the work of others Exercise: developing a risk matrix for a joint venture company 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 any sensitivities Exercise: developing the terms of reference, the risk matrix and reporting the findings for an audit of an outsourced operation Course review and closure Practice of Internal Auditing and Code of Ethics. She also provides training and helps companies prepare for an EQA. SAVE TIME AND MONEY WITH IN-HOUSE TRAINING MIS Training Institute provides specific, tailor-made in-house training on a wide variety of internal audit, IT audit and information security topics. Clients are able to determine the content, duration, and level of expertise of the course, creating a unique and customised programme. Our in-house consultants are professional trainers and draw on many years of practical experience in audit and information security. To find out more about the special benefits of in-house training, please contact: Esther Chan, Division Manager, Asia Pacific Tel: +852 2111 6634 Email: esther.chan@euromoneyasia.com Book by 22 March 2010 to secure your place. Email Telephone Facsimile misasia@misti.com +852 2520 1481 +852 2866 7340
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