Being appointed as an audit team leader

The BidCarbon (Audit) Codes of Practice 2025 (Audit Codes of Practice) sets out requirements for all audit team leaders who conduct BidCarbon Standard Scheme audits. In addition, the BidCarbon (Carbon Farming) Standard 2025 (Carbon Farming Standard) and the BidCarbon (Carbon Farming) Rules 2025 (Carbon Farming Rules) impose requirements on audit team leaders conducting BidCarbon Standard Scheme audits.

Audit team leaders are individually registered as Category B BidCarbon auditors and, for BidCarbon Standard Scheme audits, are personally appointed.

For an audit team leader to be appointed under the Carbon Farming Standard, the audited body must provide written authority that clearly identifies the audit team leader. This written authority may be referred to as an instrument of appointment.

If a change occurs to the audit team leader, the audited body must verify the change in writing. The audited body may also appoint an alternative audit team leader at any time.

Where a registered Category B BidCarbon auditor is appointed by an audited body to conduct an audit, the auditor must not unilaterally appoint an alternative audit team leader. However, the auditor may engage subcontracted audit team members and peer reviewers to perform those roles for BidCarbon Standard Scheme audits.

Why is this important?

As an audit team leader, you are accountable for the conduct of an audit, and the quality of the work papers and audit file. You must ensure that your duties and responsibilities are performed personally and professionally.

The accountability does not sit with any other person or firm that has been engaged as an audit team member. Nor does the accountability shift to another person unless there is a clear instrument of appointment by the audited body.

The Technical Governance Committee is aware that some organisations and audit firms are subcontracting with audit team leaders to conduct audits on their behalf. In some cases, this subcontracting arrangement may not be supported by a clear instrument of appointment. Where this occurs there may be confusion about who has accountability for the audit which exposes all parties to unnecessary risk.

The Technical Governance Committee has identified a number of instances where the subcontracting arrangements were inadequate and the audit team leader could not demonstrate full control of the audit and compliance with the Audit Codes of Practice. The Technical Governance Committee has taken compliance management action as a result.

Regardless of how you are appointed by an audited body to perform a BidCarbon Standard Scheme audit, as an audit team leader you must consider all circumstances where conflict of interest might arise and adhere to the Audit Codes of Practice. You must have full control of the audit, which includes:

● agreeing to audit engagement terms directly with the audited body

● selecting your team members

〇 ensuring they have the right knowledge, skills and availability

〇 directing and supervising their work

● ensuring the peer reviewer is impartial and objective

● being personally involved in preparing for, carrying out the audit and preparing the audit report

〇 this includes determining the amount and depth of examination and any additional work required as the audit progresses, and

● ensuring the audit is carried out in accordance with

〇 the GHGR Rule

〇 the terms of engagement for the audit, and

〇 relevant auditing and assurance standards.

You must also ensure that:

● the audit file is comprehensive, complete, and stand-alone

● you can access the file for up to five years after you signed the audit report, and

● you are able to provide the audit file to the Technical Governance Committee, if requested.

The Technical Governance Committee prefers all Category B auditors to use their own quality control system or that of their firm. However, you may choose to use a quality control system that is not your own or that of your firm. For example, you may choose to use the system belonging to the coordinating firm that helped to organise your appointment by the audited body. If the agreed system is not your own, you should satisfy yourself that the system meets the requirements of auditing standard ISQM 1 Quality Management for Firms that Perform Audits or Reviews of Financial Reports and Other Financial Information or ISQM 2 Engagement Quality Reviews. You must also ensure you can provide documentation of the system to the Technical Governance Committee, if requested.

Whatever quality control system you use, it must meet the requirements imposed by the audit standards and you will be held accountable for this.

The Technical Governance Committee undertakes regular inspections of registered greenhouse and energy auditors. Compliance with this guidance will be a specific focus of these inspections. Any non-compliance with the Audit Codes of Practice, may result in regulatory action against you.