Skip Ribbon Commands
Skip to main content
Sign In

Maintaining your registration as an auditor

20 October 2017

Contents​

As a registered auditor, you must continue to meet the eligibility requirements detailed in the National Greenhouse and Energy Reporting Regulations 2008 (the NGER Regulations). These requirements include that you:

  • comply with the code of conduct
  • act independently and perform objective audits
  • maintain adequate insurance
  • actively participate in audits under our schemes and maintain your continuous professional development
  • report to us annually and participate in any reviews or inspections, and
  • retain adequate records.

For more information on audits conducted under the National Greenhouse and Energy Reporting audit framework, see using audits in our schemes and read the audit determination handbook.

You will remain on the register of auditors until you elect to suspend your registration or deregister, or we suspend or deregister you.

Audit team leader requirements

When undertaking the role of audit team leader, you must ensure that you comply with the requirements specific to audit team leaders, many of which are detailed in Part 2 of the Audit Determination.

When acting as audit team leader you must:

  • ensure that audit team members collectively have the knowledge, skills and availability required to satisfactorily prepare for and carry out the audit and prepare the audit report
  • supervise the work of each audit team member, and be personally involved in preparing for and carrying out the audit and preparing the audit report
  • document the process used by the audit team leader to prepare for, carry out and report on the audit in compliance with the NGER Audit Determination
  • ensure that the audit is carried out and reported on in compliance with the NGER Regulations, the terms of the engagement for the audit, and the auditing and assurance standards (for more information on applying auditing and assurance standards, see section 1.6 of the Audit determination handbook), and
  • ensure that the peer reviewer you select undertakes a thorough peer review.

In addition, before agreeing to the terms of the engagement for the audit, you must provide the person who appointed you to carry out the audit with a signed independence and conduct declaration for both yourself and all professional members of the audit team. This declaration must state:

  • whether you or any members of your team will be in a conflict of interest situation or be in breach of the independence requirements under the NGER Regulations
  • whether you will be in breach of the auditor rotation requirements and, if so, whether an exemption has been granted, and
  • that you will comply with the Code of Conduct.

For more information on your requirements when undertaking the role of audit team leader, see Part 2 of the NGER Audit Determination.

Auditor code of conduct

As a registered auditor you must abide by the Code of Conduct set out in regulation 6.46 of the NGER Regulations. This code outlines the expectation that you will:

  • comply with the law and regulation that apply to you as a registered greenhouse and energy auditor
  • behave with integrity and objectivity
  • apply professional competence and due care
  • be honest and truthful in marketing or self-promotion
  • ensure that other audit team members comply with the code of conduct if you are conducting an audit as the audit team leader, and
  • avoid any action that may bring discredit to yourself or greenhouse and energy auditors generally.

Conflict of interest

You must be independent from the entity you audit. To maintain independence, you must not participate in schemes the Clean Energy Regulator administers.

Auditors are deemed to have a conflict of interest if they:

  • participate as a proponent, agent or investor in an Emissions Reduction Fund project
  • bid in Emissions Reduction Fund auctions, or
  • trade in Australian carbon credit units.

If you become aware of a conflict of interest situation when conducting an audit, you must take all reasonable steps to ensure the situation is resolved.

Where conflicts are not remedied, or exemptions are not provided, you must cease involvement with the audit.​

Please contact the Clean Energy Regulator if you are at risk of being in a conflict of interest situation, or if you require further information​.

​Insurance

When preparing for and undertaking an audit, you must have adequate professional indemnity insurance. Professional indemnity insurance provides cover to you against allegations of professional negligence.

Section 6.60 of the NGER Regulations prescribes the minimum standards of cover required for audit team leaders when undertaking an audit. It is up to you to determine whether your insurance is adequate to meet your obligations under the NGER Regulations.

Your professional indemnity insurance should cover all aspects of your work. Generic policies may leave gaps in your insurance or not offer enough cover. The nature of your work is one of the factors taken into consideration by insurance firms when setting premiums, and auditors are often considered to carry more inherent risks than consultants. While this means that premiums are usually higher for auditors than they are for consultants, it is vital that you accurately describe your work, as not doing so could mean you are not adequately covered.

Even if you already have professional indemnity insurance cover, you should regularly review your cover to assess whether your insurance continues to be suitable.​

Participation

To maintain your registration under regulation 6.66 of the NGER Regulations, you must participate in a substantial way in at least one scheme audit​ in a three-year period.​​

For Category 2 auditors, participating in a substantial way means that they must lead and prepare the audit report for at least one audit in a three-year period.

For Category 1 auditors, substantial participation means participating for a minimum of 30 hours as a team member. However, this participation can be across more than one audit, as long as it is completed every three calendar years following registration.

Peer review activity does not constitute participation in a substantial way in an audit.

The types of audit we accept for audit participation are:

  • a Part 6 audit which is
    • an Emissions Reduction Fund audit
    • a safeguard audit, or
    • a greenhouse and energy audit conducted under sections 73 or 74 of the NGER Act
  • an alternative audit, which is considered equivalent to a part 6 audit, and which is
    • a voluntary audit conducted under the National Greenhouse and Energy Reporting scheme or the Emissions Reduction Fund that is in addition to specified requirements
    • an exemptions certificate audit conducted under the Renewable Energy Target, or
    • any other audit commissioned by the Clean Energy Regulator.

We do not accept other types of audits as participation to maintain registration.

Rotation

Audit team leaders must not be the audit team leader for more than five consecutive Part 6 audits of the same kind carried out in relation to one audited body. Between each set of five consecutive Part 6 audits, there must be at least two successive Part 6 audits where the audited body engages a different audit team leader.

In addition to this requirement, we recommend that auditors should not audit the entire life cycle of an Emissions Reduction Fund project. The Clean Energy Regulator recommends participants engage at least two auditors from different audit firms, and audit participants who meet this requirement are less likely to be selected for additional audits.

Continuing professional development

Continuing professional development involves participation in, or attendance at, conferences, seminars, courses, and other kinds of training that are relevant to the:

  • category in which you are registered, and
  • knowledge and qualifications you used for the purposes of registration.

For example, if you are registered as a Category 2 greenhouse and energy auditor, we expect that you will participate in a mix of assurance related as well as any technical related development.

You must complete at least 15 days (112 hours) of continuing professional development in each three-year period of registration. The three-year period starts on the date you are first registered.

​Annual reports

You must submit an annual report to us on each anniversary of your registration as a greenhouse and energy auditor. This report must contain information about any audits and continuing personal development that you have undertaken during the previous 12 months.

Reviews

The Clean Energy Regulator may review your registration as a registered greenhouse and energy auditor. Typically, this will occur on each three-year anniversary of your registration and will take into account information also provided through your annual reports. We may also request other information and documents as part of a review. You will receive a written notice if we intend to review your registration.

Inspections

We may conduct an inspection of your performance as a registered greenhouse and energy auditor. The purpose of an inspection is to:

  • review the decision-making processes you use in carrying out Part 6 audits
  • ensure that you are complying with the requirements of both the National Greenhouse and Energy Reporting (Audit) Determination 2009 (the NGER Audit Determination) and the NGER Regulations in carrying out Part 6 audits, and
  • provide the agency with intelligence to inform its ongoing management of auditor performance.

Inspections are conducted by an independent team of inspectors and may be conducted during or up to 5 years after the completion of a Part 6 audit. If you are selected for an inspection you will receive written notice.​

An on-site inspection involves inspecting a number of Part 6 audit files over a period of 2 – 3 days at your premises. We will contact you to advise you that you have been selected for an on-site inspection and arrange a suitable date and time for the inspection team to visit your offices.

When conducting an inspection, inspectors require full and free access to your audit files and other relevant documents. Inspectors may need to take copies of documents to complete their assessments and prepare inspection reports off-site, as well as to support inspection findings in work papers and reports.

You may be requested to provide us with copies of key audit documents in advance to the inspection.

Following an inspection, you will have an opportunity to comment on the draft findings and clarify any errors or misunderstandings before the report is finalised. We will then consider the findings in the final report and decide whether further action is required. These findings also enable us to identify areas where you may require additional support and guidance as well as informing future policy decisions.

For more information, see subdivision 6.5.6 of the NGER Regulations​.

Record keeping

Audit team leaders are required to keep records relating to an audit for five years from the date of the report of the audit. These records should be sufficiently complete and detailed to provide an understanding of the audit and the conclusions drawn from the audit evidence obtained.

If you are an audit team leader and you are leaving an employer, it is your responsibility to retain or have access to records relating to an audit for five years from the date of the report of the audit.

We recommend that you make your employer aware of this obligation and include in your employment contract the right to access documents after employment ceases, for a period of at least five years.

For more information on record keeping requirements, see section 4.2 of the Audit determination handbook​.​​

Documents on this page Documents on this page

Was this page useful?

LEAVE FEEDBACK
 
 
preload-image-only preload-image-only preload-image-only preload-image-only preload-image-only preload-image-only preload-image-only preload-image-only preload-image-only