Joint venture audit

Overview

A Joint Venture audit is process of conducting independent examination on and review of operator activities, procedures and costs over a defined period of time. Joint venture audit is conducted for the purpose of verifying transactions and resulting charges reflected on the Operator's joint interest billings. It is being carried out to assure operator and non-operator partners that revenue and expenses are passed through correctly and in compliance with the joint operating agreement.

Who can initiate a review?

Non-operating partners schedule and fund a review of detail transactions and related supporting documentation to ensure their individual ownership interests are productive and are being protected.

Why you need joint venture audit

Joint venture audit should be conducted in order to;

  • Ensure billed charges are in compliance with the operating agreement and adequate supporting documents are provided
  • Ensure cost wholly incurred by the operator have not been charged to the joint account
  • Determine whether all vendor credits for deposits, refunds and returns have been appropriately reflected in net project costs
  • Ensure the Operator activities are in compliance with the agreement, including maintaining adequate insurance coverage and timely regulatory reporting
  • Ensure goods, services and applicable taxes are paid in a timely manner
  • Ensure project assets and costs are adequately managed, controlled and reported
  • Analyze the cash call process and ensure funding adequately matches the operation needs without material surplus
  • Ensure authorization for expenditure(AFE) was not overspent, and if it was, was it in compliance with the supplementary AFE agreement
 
Why BVS?

BVS has over the years conducted several joint venture audits to clients in the oil and gas sector and this has helped them to reclaim millions from their operators. BVS has been rated number one leading firm in the area of joint venture audit. We are known for our team of seasoned professionals who provides a faster approach to solving clients’ problems. We make use of the latest audit and control techniques to provide Clients insight into the Operator systems and processes relative to financial reporting and cost. We are committed to achieving excellence and providing the best and most fair report possible.

How we can help you

BVS, with our experience in the oil and gas sector and specialized expertise, provides clients with adequate audit review of the operator systems which covers the following:
  • Audit risk assessment
  • Specification of audit programmes and  scopes
  • Perform sufficient test checks
  • Review procedures to assure that the Operator satisfactorily maintains the accounts and supporting records
  • The charges and credits are reviewed and considered for reasonableness and proper inclusion in the Joint Account
  • Items considered to have a lack of impact are reviewed on a selective basis.
  • Preparation and distribution of audit reports
  • Audit follow up and reporting
 
BVS provide insight into the Operator’s controls and processes by appreciating the special relationships clients’ have in joint interest activities. We also handle follow-up work for the non-operators. We do our very best within the limited time to provide unique report which will improve our clients’ positively.