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Glossary

​​​Assurance engagement

A greenhouse and energy assurance engagement by a registered greenhouse and energy auditor, the purpose of which is to provide an independent conclusion as to the reliability, accuracy and completeness of the matters being audited. There are two types of assurance engagement: limited and reasonable.

These are defined below.

Assurance engagement plan

An assurance engagement plan documents the audit team leader’s approach to the performance of the assurance engagement and how they intend to gather sufficient and appropriate evidence to support the assurance conclusion.

Audit

A limited assurance, reasonable assurance or verification (agreed-upon procedures) engagement undertaken in accordance with the National Greenhouse and Energy Reporting (Audit) Determination 2009.

Audit team leader

A registered greenhouse and energy auditor appointed to carry out a Part 6 audit.

Audited body

A registered corporation, or person referred to in section 20 of the NGER Act, in respect of whose compliance with the NGER Act or the regulations a greenhouse and energy audit is to be carried out.

Basis of preparation

The basis on which the responsible emitter has chosen to prepare the forecast information that is the subject of a calculated baseline application.

CFI Act

The Carbon Credits (Carbon Farming Initiative) Act 2011.

Emissions Reduction Fund

The Emissions Reduction Fund—the CFI Act provides for approval of projects and carbon credit units arising from those projects which may be used to meet emissions-related obligations.

ERF audit

An audit under section 214 or 215 of the CFI Act; or an audit carried out for the purposes of paragraph 13(1)(e) or 23(1)(d) or 76(4)(c) of the CFI Act. Commonly referred to as audits under the Emissions Reduction Fund.

Exemption certificate audits

Audits carried out as part of applications for exemption certificates under the Renewable Energy Target, under paragraph 46A(2)(bb) of the RET Act. Exemption certificates allow for a relief from the renewable energy shortfall charge for emissions-intensive trade‑exposed (EITE) activities.

Greenhouse and energy audit

An audit under any of sections 73 to 74A of the NGER Act.

Limited assurance

A reduction in assurance engagement risk to an acceptable level, but where the level of risk accepted is greater than for a reasonable assurance engagement, as the basis for a negative form of expression of the audit team leader’s conclusion.

Materiality

Material information is that information which if omitted, misstated or not disclosed has the potential to adversely affect the decisions of the users of the information.

A material misstatement or material non-compliance is an error, omission, misrepresentation or noncompliance with the NGER Act that is significant, pervasive and affects the matters being audited as a whole.

Misstatement

An error, omission or misrepresentation in the matter relating to compliance with the NGER Act, the NGER Regulations, the CFI legislation or associated provisions.

NGER Act

The National Greenhouse and Energy Reporting Act 2007 (Cth).

NGER Audit Determination

The National Greenhouse and Energy Reporting (Audit) Determination 2009.

NGER Measurement Determination

The National Greenhouse and Energy Reporting (Measurement) Determination 2008.

NGER Regulations

The National Greenhouse and Energy Reporting Regulations 2008 and subsequent Amendment Regulations.

NGER Scheme

The National Greenhouse and Energy Reporting Scheme which incorporates the NGER Act, its subordinate legislation and legislative instruments.

Part 6 audit

The National Greenhouse and Energy Reporting Amendment (2015 Measures No. 2) Regulation 2015 defines a Part 6 audit as an ERF audit or a greenhouse and energy audit.

Reasonable assurance

A reduction in assurance engagement risk to an acceptably low level, as the basis for expressing a positive conclusion. Reasonable assurance means a high, but not absolute, level of assurance.​

Renewable Energy Target (RET)

A renewable energy target for electricity generation and renewable energy shortfall charge, set up under the RET Act and the RET Regulations.

RET Act

Renewable Energy (Electricity) Act 2000.

RET Regulations

Renewable Energy (Electricity) Regulations 2001 and subsequent Amend​ment Regulations.

Safeguard audit

Any audit under Section 28, 36, 42 or 46 of the Safeguard Rule.

Safeguard Rule

National Greenhouse and Energy Reporting (Safeguard Mechanism) Rule 2015

Verification engagement

An engagement where the audit team leader is engaged to carry out specific procedures agreed between the audit team leader, audited body and the Clean Energy Regulator. No conclusion is expressed by the audit team leader in a verification engagement, only a report of factual findings following the completion of the procedures. Sometimes referred to as an agreed-upon procedures engagement.

Verification engagement plan

A verification engagement plan documents how the audit team leader plans to conduct the verification engagement.

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