AUDIT FIELDWORK PHASE

Verification of vouchers supporting postings made to the joint accounts for all sampled transactions and document types, including external vendor invoices and credit notes.

Selection of representative transaction samples and request for complete supporting documentation where not already provided, including PRs, POs, contracts, invoices, timesheets, service tickets, service reports, studies, transport documentation, and system-generated records.

Review of Daily Drilling Reports, End of Well Reports and validation of timing and consistency of subcontractor invoices, rig charges, and internal personnel costs.

Verification of drilling, completion, workover, and intervention costs against approved programmes, AFEs, and contractual terms

Request and review of vessel reports and test against vessel and fuel charges made. Perform independent tracking of vessel and rig routes using marine tracking tools for offshore operations.

Request and review of helicopter logs, flight manifests, and allocation of aviation costs where relevant.

Review of logistics base, shore base, camp, and office charges to identify lump-sum or allocation practices and assess compliance with contractual and accounting provisions.

Verification of mobilisation, demobilisation, standby, intake, and warm-up costs, including allocation across wells, assets, and joint ventures, depending on audit rights and set up.

Verification of internal cost allocation methodologies, including certification of tariffs where applicable, review of cost pools and allocation keys, and confirmation of required partner approvals.

Reconciliation of time-writing records with the transaction data, including validation of budgeted versus actual rates. Reconcile cost allocations made on time-writing.

Review of intercompany charges from affiliated entities, including verification of invoice back-up, time-writing quantities, service descriptions, personnel, and organisational units.

Verification that affiliate rates applied are partner-approved, contractually agreed, or independently certified in accordance with contract provisions.

Review of service agreements, service orders, and contracts with affiliated companies, including assessment of scope, pricing mechanisms, and approval status.

Verification and comparison of PCO, G&A, and overhead charges against internal cost allocations and intercompany charges to identify overlaps, double charging, or non-compliant allocations.

Assessment of head office, regional office, and shared service cost allocations to confirm allowability, allocation basis, and consistency with contractual definitions of recoverable costs.

Request and review of organisational charts for projects, assets, shore bases, and offices to assess cost attribution and organisational relevance.

Request and review of final well reports and well cost reconciliations, where available, and reconciliation of materials and consumables with costs charged.

Request of stock data including opening and closing balances, material movements, stock-taking reports, and reconciliation of surplus materials and scrap.

Verification of material and consumable charges posted to the joint accounts, including review of material transfer vouchers and supporting system documentation.

Assessment of inventory ownership, title transfer, write-offs, and treatment of residual materials in accordance with contractual provisions.

Organisation and execution of site visits to onshore facilities, warehouses, and logistics bases where required to validate inventory, processes, and controls.

Verification of production data, liftings, and offtake volumes against metering records, terminal statements, and entitlement calculations where applicable.

Review of cost oil or cost gas recovery calculations, including recovery ceilings, carried forward unrecovered costs, and compliance with contractual limits.

Verification of profit oil or profit gas split calculations in accordance with contracts and review of cost recoverability provisions under contractual rules.

Assessment of treatment of non-recoverable costs, penalties, donations, and excluded expenditures as defined contractual cost recovery provisions.

Verification of abandonment, decommissioning, and site restoration cost provisions, funding mechanisms, and allocation methodologies.

Review of financing costs, interest charges, and foreign exchange differences to assess recoverability and contractual allowability

Assessment of compliance with approval thresholds, work programme authorisations, and contractual requirements.

Identification and documentation of audit exceptions arising from non-compliance, misallocation, overcharging, or unsupported costs.

Collaboration with the Client’s technical and financial teams on special focus areas and complex audit topics. Maintenance of a complete audit trail, including tracking and follow-up of information requests and audit.

Discussion of preliminary audit observations with the Operator to confirm facts, obtain clarifications, and request additional support where required.

Alignment with stakeholders on follow-up timelines, escalation points, and audit report issuance during the fieldwork phase.

Organisation and conduct of the final closing meeting with the Operator and non-operating partners to present preliminary findings and next steps.

Align and conduct of wrap-up meetings with the Client and partners to align on key conclusions, recoveries, and expected follow-up actions.