External presentation The views and opinions expressed by guest speakers do not necessarily reflect the views or position of the Clean Energy Regulator. Damon Roddis, Pacific Environment

Damon Roddis, Principal / General Manager, NSW Sydney NGER Auditor’s Workshop, 20 March 2015 Creating Successful Technical / Assurance Partnerships

Consulting Technologies Monitoring  Summary of barriers to successful partnerships  Solutions to overcome these barriers  Conclusion Overview

Consulting Technologies Monitoring  An effective audit team may need to be based across multiple geographies  While this is potentially a barrier, it can be a distinct advantage to a successful audit Barrier #1: Geographical

Consulting Technologies Monitoring  Who invoices whom?  Whose terms do we operate under? Barrier #2: Contractual

Consulting Technologies Monitoring  Who is the point of contact for the auditee?  How will internal audit team communications happen? Barrier #3: Communication

Consulting Technologies Monitoring  Who is running the show?  Initial inquiry / relationship may come through Technical partner  However, assurance partner may take the Lead Auditor role. Barrier #4: Organisational

Consulting Technologies Monitoring  Both Technical and Assurance auditors have their own set of industry jargon  Each is alien to the other Barrier #5: Linguistical

Consulting Technologies Monitoring  The two disciplines often wish to pursue different lines of enquiry Barrier #6: Directional  e.g. Reliance on invoices vs. external (third-party) confirmation

Consulting Technologies Monitoring  Use the geographical spread to your advantage  Site inspections can be completed by multiple personnel while still being cost effective Solution #1: Geographical

Consulting Technologies Monitoring  Be flexible on contractual arrangements  Relationship should be defined upfront  Engagement Letters serve to formalise arrangements  WHS – agreement to provide a safe work environment for the auditors (*PPE)  Audit client should receive an uncomplicated invoice at the end  All parties may ultimately agree to audit client’s terms Solution #2: Contractual

Consulting Technologies Monitoring  Secure, cloud based repository for audit evidence and final audit file, synch-ed across organisations  Being smarter with technology (paperless, use of teleconference / video conference tools)  Full audit team meet early to communicate deadlines, key risks, WHS requirements and audit direction  Agree and lock-in timeframes / milestones for all engaged parties  Commence planning and review process early as often a number of reviewers are involved Solution #3: Communication

Consulting Technologies Monitoring  No reason why Lead Auditor is also the client contact - it may even be preferable that this is not the case.  Option to include both a technical and assurance peer reviewer  Multiple reviewers means additional time required Solution #4: Organisational

Consulting Technologies Monitoring  Recognise that both Technical and Assurance partners have a lot to learn from each other.  This learning process is ultimately very helpful to everyone, including the client Solution #5: Linguistical

Consulting Technologies Monitoring  Let the audit develop in different directions - both are valid and will ultimately enhance the outcome. Solution #6: Directional

Consulting Technologies Monitoring Conclusion  Several challenges to overcome in creating a successful Technical / Assurance partnership  With effective planning and process, barriers can be overcome  In some cases, perceived barriers may provide significant value to the process  A successful partnership entails that we all learn something as a result

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