QMS Audit and IFRS for Oil & Gas Industry

What are the Goals?

At the end of this training course, you will learn to:

• Understand the accounting standards, policies and practices used by companies in the Oil & Gas industry
• Examine issues and guidelines in accounting for Joint Ventures
• Identify and know how to apply international and national accounting standards most relevant to the industry
• Improve relevance and reliability of financial reports to better meet the needs of users
• Review and use publicly available information for bench-marking the business performance of companies in the industry
• Plan, conduct and report management system audits focused on improvement & be a driving force in an organizations improvement processes

Who is this Training Course for?

This training course is suitable for a wide range of professionals but will greatly benefit: 

• Corporate Accountants, Financial Controllers, Treasury Officers, Management Accountants
• External, Financial and Internal Auditors
• Senior Managers keen to see how to initiate improvement and increased profitability in operations, as well as improvement in environment and health and safety
• Operations’ Managers needing to gain an understanding of enhanced control and departmental improvements
• Quality, Environmental and Health and Safety Managers wishing to enhance their knowledge of how to better manage their specialty staff and departments
• All staff involved in receiving third party certification auditors

Daily Agenda

Module 1: Auditing Oil & Gas Industry Quality Management Systems

Quality Management System (QMS) Audit

• ISO 29001:2010 and 9001:2015 QMS International Standards
• Review of 29001 Clauses 4-8 and 9001 Clause 9 Internal Audit Requirements
• Quality System Requirements
• Types and Levels of QMS Internal Audits
• Documentation in the Quality Management System
• Roles and Responsibility of Auditors

Audit Preparation and Setup

• Terminology and Definitions
• Audit Concepts and Principles
• Planning and Conducting Effective Audits
• Producing Audit Programme and Procedure
• Audit Terms of Reference
• Interview and Note-taking Skills

Conducting an Internal Audit

• Internal Audit Process
• Creation of Effective Audit Checklists
• Communications during Audit
• QMS Documentation Review
• Key Personnel Interviews
• Physical Site Observation

Preparing Audit Report

• Review of Non-conformities and Observations
• Audit Findings and Conclusions
• Preparation of Internal Audit Report
• Corrective Action Plan
• Presentation of Audit Report
• Monitoring and Close-out of Non-conformities

Review of Internal Audit Process & Assessment

• Review of Internal Audit Process
• Review of Internal Audit Reporting

Module 2: International Financial Reporting Standards (IFRS) for the Oil & Gas and Petrochemical Sectors (Upstream, Midstream & Downstream)

Major Accounting Issues facing the Oil & Gas and Petrochemical Industry (Upstream, Midstream & Downstream) and the Role of IFRS

• The Latest Accounting Issues facing the Oil & Gas and Petrochemical Industry (upstream, midstream & downstream)
• The Impact of Commodity Prices, Currency & Interest Rate Fluctuations and Political and Environmental Developments
• The Impact on Strategic Development and Growth within the Industry
• Establishing the Case for IFRS
• An Overview of IFRS in relation to the Oil & Gas Industry
• The Annual Reports & Financial Statements of Leading International Petroleum Companies

Accounting for Assets in the Oil & Gas and Petrochemical Industry (Upstream, Midstream & Downstream)

• IAS 16: Property, Plant and Equipment and Depletion, Depreciation & Amortisation (“DD&A”)
• IAS 36: Impairment of Assets
• IFRS 6: Exploration for and Evaluation of Mineral Assets and the Accounting Approaches
• IFRS 13: Fair Value Measurement
• IAS 2 Inventories
• Reserve Reporting

Accounting for Business Combinations, Joint Ventures & Production Sharing Agreements (“PSA”s) 

• IFRS 3: Business Combinations
• IFRS 10: Consolidated Financial Statements
• IAS 38: Intangible Assets
• IFRS 12: Disclosure of Interests on Other Entities
• IFRS 11: Joint Arrangements
• Break Even Oil, Cost Oil & Profit Oil

Accounting for Cash Flow & Financial Instruments in the Oil & Gas and Petrochemical Industry (Upstream, Midstream & Downstream)

• IAS 7 Statement of Cash Flows
• The Use of Derivatives in the Oil & Gas & Petrochemical Sector to Manage the Commodity, Currency and Interest-rate Risks, etc.
• Treasury Management Issues for Multi-nationals
• IFRS 7 Financial Instruments: Disclosures
• IFRS 9 Financial Instruments
• Evaluating the Cash Flow & Use of Financial Instruments by Leading International Oil & Gas and Petrochemical Companies

Creative Accounting and Corporate Governance

• Creative Accounting
• Enron and Investor Protection
• Corporate Governance
• The Role of the Board & Audit Committee
• External Auditing - reporting to investors
• Internal Auditing - Defining and Developing the Internal Audit Process