Purpose of audits
National greenhouse and energy audits determine if registered corporations are complying with the National Greenhouse and Energy Reporting Act 2007 (NGER Act).
We initiate these audits for two reasons:
- Suspected breach of the legislation—We can compel a corporation to be audited (section 73 of the NGER Act) if we have reasonable grounds to suspect that a registered corporation has not met, is not meeting, or proposes not to meet its obligations under the legislation. After receiving a written notice from us, a corporation may appoint a greenhouse and energy auditor of its own choice (unless we specify in the notice that a particular auditor is to carry out the audit). The corporation pays for these audits.
- General compliance strategy—Where there is no suspicion of non-compliance, we may still organise an audit as part of the broader compliance strategy (section 74 of the Act). In this case, we send written notice advising that we will appoint a greenhouse and energy auditor to audit a corporation’s compliance. We pay for these audits.
In both cases the matters, or ‘areas’, to be audited will be specified in the written notice we issue.
Focus of audits
Audits may examine:
- the registered corporation’s structure, operational control, and facilities
- the identification and measurement of emissions sources, energy consumption, and production point
- the accuracy, completeness and validity of reported greenhouse and energy data, including recordkeeping requirements, or
- more generally, the effectiveness of internal controls associated with data collection and reporting processes that support the collection or calculation of reported emissions and energy data.
An important focus of greenhouse and energy audits is to assist corporations to understand their obligations and develop efficient reporting processes that meet the needs of government and business.
We also use proactive audits to develop a better understanding of capabilities to comply.
For more information: