This programme explores some of the tools available for the financial control of large and medium scale mining operations and medium size oil & gas operations to optimize the business case within a given tax jurisdiction. Previous estimates during the Project Implementation Phase focus upon estimating and controlling costs associated with the Capital Cost Estimate (CAPEX). However as the project passes from Implementation to Operation the cost estimating and control focuses upon the Operating Costs (OPEX). For Implementation the basis of estimating and cost control changes from the construction based Work Breakdown Structure to a functional based Operational Structure.
An Organizational Structure is first developed to reflect the operating necessities of the operation and from this the essential Cost Centres are identified. Within these cost centres the costs associated with various cost categories such as salaries and wages, maintenance, consumables, fuel, power and service contracts are identified. To help with the estimation of salaries and wages a Workforce Schedule needs to be developed to reflect rates, local legislative requirements and shifting.
To ensure that the mine is operating effectively and within the legal and environmental framework regular audits are essential. This first category of audits ensures that any ineffective and costly operations are mitigated and the second to minimize and mitigate the potential risks from inappropriate operations. Participants will be provided with a detailed overview of auditing to maximize values and auditing for correctness. For this second category, auditors need a familiarity with corporate accounting systems/methods used, values, tax revenues and royalties paid to governments.
The course participants will learn how to audit main risk areas associated with mining or with oil & gas companies and examine and understand the impact of fraud in such companies. This will entail setting-up internal audit functions, developing controls and tests to prevent and detect fraud and to plan, conduct and conclude an external audit. This necessitates an understanding of the International Standards on Auditing (ISAs) and the effects of auditing on the oil & gas industry.
At the end of the Programme, Participants will be able to:-
- Audit main risk areas associated with mining, oil and gas companies
- Discuss the impact of fraud in such companies and develop controls and tests to prevent and detection of fraud
- Plan, conduct and conclude an external audit
- Understand the requirements of International Standards on Auditing (ISAs) and how their effects on the audit of oil and gas industry
- Set up and effective internal audit function in such companies
- Conduct Preliminary Survey and Detailed Plan for Value-adding audits for Mining and Petroleum projects
- Execute audit programmes to obtain assurance on correctness of declared values
- Examine Compliance to appropriate corporate accounting rules, international standards and best practice.
- Identify policy and administrative actions that can increase and maximize values, tax revenues and royalties payable to governments.
- Improve technical skills
The Programme is designed for regulators, internal and external auditors, financial staff, lenders, academicians, government revenue authorities, consultants, financial analysts, consulting firms and government officials.