Setting the Context
When writing the introduction to an audit report on oil and gas revenues or financial assurances, auditors should clearly state why they carried out the audit and explain why the revenues or programs they audited are important. Doing so will provide an answer to the “so what?” question that readers might pose and will let the readers know why they should care about the audit topic.
The front end of the report should also provide sufficient context to enable the readers to fully understand the report’s audit findings. Depending on the breadth of the audit, this may include providing context on:
- how a particular oil and gas resource is extracted (see Figure 7 for an example),
- the relative importance and variation of each revenue source over time (see Figures 8 and 9 for examples),
- the risks associated with revenue collection (see Figure 10 for an example), or
- the geographic location of oil and gas wells in a jurisdiction (see Figure 11 for an example).
By using easy-to-understand charts and diagrams, as in the examples from published audits in Figures 7 to 11, auditors can effectively present useful context without using too many words. Using charts and diagrams will also break the text and make the report more visually appealing and easier to read.
However, preparing good charts and diagrams requires some planning: success will be more likely if auditors start thinking about presentation formats and the necessary data early in the audit. Waiting for the reporting phase to identify the data required for a chart or diagram may not leave enough time for auditors to obtain reliable information and still meet reporting deadlines. Auditors should also remember that information used in charts and graphs must be subjected to rigorous quality assurance in the same way as other types of audit evidence.