Auditing and Compliance Strategies, Procedures, and Policies
This overview of the audit process and general issues regarding findings was extracted from an audit manual. This paper is structured to give the reader a quick outline and overview of the audit process from planning to final report. These processes are designed to help the auditors developed a logical flow in their job of ensuring compliance with applicable federal leases, rules, regulations, and laws covering the payment of federal royalties.
II. THE AUDIT PROCESS
A. Preliminary Research
The purpose of the pre-audit review is to provide the framework for planning and examining the activities and operations related to reporting and payment of federal royalties. The importance of pre-audit work in the planning stage of an audit engagement cannot be over emphasized. A well thought out plan for conducting an audit will result in an efficient audit. Therefore, planning and pre-audit review is essential before starting any fieldwork.
Proper planning enables the auditor to develop the audit program. The audit program is a guide for the auditor to examine the activities and operations related to reporting and payment of federal royalties. The initial development of the audit program starts in the office, well before any fieldwork begins. Yet, some fieldwork, consisting of the review and evaluation of the management control structur
This content is available from the following sources
Already a Subscriber? Sign In
Over 60 years of scholarship at your fingertips.
Buy the Publication
This article appears in:
Federal and Indian Oil & Gas Royalty Valuation and Management