JV Auditors Joint Venture Audit

Lancaster Consulting LLP

Lancaster Consulting LLP

We serve the upstream oil and gas market, however we also offer many translatable services to the rest of the business world. For example we recently began the first stage of a month end close improvement project with a power industry client.

Many of our clients know exactly what they need and have quite specific contracts with us, but others have changing requirements and like to take advantage of other value generating services. 

If you are new to us, or joint venture auditing, would like to know in more detail what we do, or maybe just wondering whether the same commercial benefit can apply to your business, the below Q&A should help.

Q. How does a joint venture audit or commercial audit differ from statutory/legal/State audit?

A. A joint venture audit is usually discretionary and rights to perform it are normally detailed in a partner operating or joint operating agreement.

Q. Why would you choose to audit?

A. Audits can achieve several goals at once a) ensuring that the Operator books and records are correct and that any credits due are made to the joint venture b) allow monitoring or testing of processes and controls to give comfort that resources are used effectively and efficiently c) provide comfort over compliance environment for Anti-bribery, Code of Conduct, Sustainability goals d) allow the partners to have a first hand view of the Operator in detail, beyond the normal monthly reporting received.

Q. Who sets the auditing standards?

A. Audits may be governed by different codes in different industries and parts of the world. For example in Oil and gas in the UK, audits are usually governed by the Standard Oil Accounting Procedures (SOAPs) - see the link under the Publications section. Our partners are also professionally qualified, for example as Chartered Accountants in England and Wales (ICAEW).

Q. Why would you choose Lancaster Consulting LLP and not another firm?

A. One key difference between us and larger advisors is that we are hands on and will provide practical solutions quickly and economically in a relatable way. We try to focus on the problem or task in hand without trying to sell you solutions to other problems you didn't ask us for or don't have.

We are the best all round established joint venture audit firm, with global reach. We have a long track record of cost recovery for clients.  Clients rely on us for advice and work in non-audit areas too. We ensure a consistent partner relationship and service level. Our languages include  English, French, Italian, Spanish, Russian, Norwegian, Chinese. Partner experience in all upstream finance processes, upstream M&A, and good experience outside of oil and gas. Partners and consultants have years of practical oil and gas knowledge. We work with the best experts in facilities engineering, metering and measurement, oil marketing. We use the best techniques for audit fieldwork and remote audit.

Q. What is the audit process? 

A. We will spend time understanding your need and provide you an estimate or audit budget. After that you will review the draft audit scope we prepare. Either everything can be delegated to us including communication with the Operator, or if you have an established audit function, we may just join your team. We will ensure the right skilled resources are used, and you will receive regular updates during planning , fieldwork , followed by an audit reporting process that we will own until the last issue is closed.

What audit tests do you do?

A. Lancaster audit approach is risk based and flexible, weighted towards targeted substantive testing, but processes and controls may also be evaluated and tested if appropriate. Currently advanced excel techniques (Vlookup tables, pivot tables, filters, finding duplicates, etc.) are always used, with the option to use audit software's if beneficial. We also apply the ethical standards expected of professional accounting bodies.

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