1. 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

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

3. www.pacific-environment.com Consulting Technologies Monitoring  Summary of barriers to successful partnerships  Solutions to overcome these barriers  Conclusion Overview

4. www.pacific-environment.com 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

5. www.pacific-environment.com Consulting Technologies Monitoring  Who invoices whom?  Whose terms do we operate under? Barrier #2: Contractual

6. www.pacific-environment.com Consulting Technologies Monitoring  Who is the point of contact for the auditee?  How will internal audit team communications happen? Barrier #3: Communication

7. www.pacific-environment.com 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

8. www.pacific-environment.com Consulting Technologies Monitoring  Both Technical and Assurance auditors have their own set of industry jargon  Each is alien to the other Barrier #5: Linguistical

9. www.pacific-environment.com 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

10. www.pacific-environment.com 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

11. www.pacific-environment.com 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

12. www.pacific-environment.com 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

13. www.pacific-environment.com 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

14. www.pacific-environment.com 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

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

16. www.pacific-environment.com 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

17. Sydney Office: Level 1, 146 Arthur Street North Sydney NSW 2060 P: +612 9870 0900 E: damon.roddis@pacific-environment.com W: www.pacific-environment.com