Audit User Feedback
Gavin Mongan
Team Leader, Audit Management
Audits for the Clean Energy Regulator
Audit types
> ERF
>
Initial audits
>
Subsequent audits
>
Threshold audits
>
Voluntary audits
> NGER
> Safeguard
> Audit program
Audit and Assurance Workshop
2
Emissions Reduction Fund
266 audit reports received
>176 initial, 86 subsequent
> 26 qualified opinions – all initial
audits
Projects by method family
Vegetation
Waste
50 Regulator initiated audits of
projects
23 Waste
16 Vegetation
9 Savanna burning
2 Agriculture
Audit and Assurance Workshop
Savanna Burning
Agriculture
0
50
100
150
200
3
ERF audit findings
Themes
Takeaways
Record keeping
Qualitative non-compliance is
(likely) material
Legislative requirements
Material non-compliance
Administrative errors
Financial implications
Audit and Assurance Workshop
> Legal right
> Eligible Interest Holder Consents
> Project vegetation plans
> Pre-submission report changes
4
ERF audit program
Themes
Takeaways
Pre-reporting compliance
Project and Proponent compliance
is high
Regulatory approvals
Record-keeping
Legislative requirements
Re-audits to address auditor quality
concerns
Audit and Assurance Workshop
50 audits have identified 1
material error
Lack of understanding or attention
to findings has caused delays and
confusion
5
• Auditing against the method is required
• Where the method doesn’t make sense,
please let us and the department know
• Please contact us for clarification
Audit and Assurance Workshop
6
National Greenhouse and Energy Reporting
72 voluntary audits received
VOLUNTARY AUDITS
> 50 limited assurance
> 22 reasonable assurance
Return to carbon price levels
66
74
72
58
31
Audit and Assurance Workshop
7
NGER audit findings
Themes
Takeaways
Compliance priorities
Voluntary assurance is valuable
1. Flaring and venting
Qualitative non-compliance is
(likely) material
2. Metering
3. Energy
Record-keeping
Legislative requirements
>Pre-submission report changes
• What changed
• Why
• By how much
Material non-compliance
Audit and Assurance Workshop
8
• Every aspect of reporting is important
• Details are necessary to provide
confidence in the reported information
• Please contact us for clarification
Audit and Assurance Workshop
9
NGER audit program
Targeted
Thematic
Random
Issues identified during
report assessment
Industry based audits
looking at specific
information
Up to 20 percent of audit
program
Unexplained variance
from expected outcomes
Based on compliance
priorities
Necessary to promote
compliance
Poor quality or consistent
errors (compliance
history)
Narrow scope with
reduced materiality
Voluntary assurance
viewed favourably
May include some level of May include some level of May include some level of
re-audit
re-audit
re-audit
Audit and Assurance Workshop
10
Safeguard Mechanism
Small number of applications received to
date
Audits have been of acceptable quality
however:
> Small number of significant issues
> Clearer, more detailed procedures
> Greater information in Part B
> Specific and succinct
Increasing volume of enquiries and
demand for audits
Audit and Assurance Workshop
11
Safeguard audit findings
Themes
Takeaways
Assessment priorities
Clear and concise information
Record-keeping
>Pre-submission report changes
Legislative interpretation (section 5
of Safeguard Rule)
• What changed
• Why
• By how much
Audit and Assurance Workshop
12
• Every aspect of reporting is important
• Correct identification of production
variables
• Auditing correct emissions
• Materiality
• Please contact us for clarification
Audit and Assurance Workshop
13