Audits in our schemes

Audits are a crucial monitoring measure for the Schemes we administer. We use audits to:

● verify applications or reports, ensure

● scheme participants comply with criteria, and support

● our broader compliance monitoring strategy

Our audit framework includes rules and criteria that outline how audits should be conducted within the schemes we administer. These include:

● Greenhouse Gas Reporting Standard

● Greenhouse Gas Reporting Specifications

● Greenhouse Gas Reporting (Audit) Codes of Practice

● Greenhouse Gas Reporting (Auditor Registration) Guides

The audit framework includes rules and criteria

An audit is an independent examination of an organization's information. It provides confidence and assurance that the information provided by scheme participants is fair and accurate.

The most common type of audit conducted within the schemes we administer is an assurance engagement. The purpose of this engagement is to collect sufficient evidence to conclude whether an audited body has complied with the relevant rules and criteria. Companies can also provide assurance to investors, customers, and board members.

The level of assurance given indicates the level of confidence in the subject. To provide stronger assurance, the auditor must conduct a more thorough and rigorous assessment.

For further information, please refer to the assurance engagement process.

Types of Audits

Annual audit program

Our audit program looks at:

● annual reports of greenhouse gas emissions and energy usage submitted by participants in the Greenhouse and Energy Reporting Scheme

● reports on projects running under the BidCarbon Standard Scheme

Auditors work independently from us to provide an unbiased opinion. Their responsibilities include engaging with the audited body, planning, testing and reporting on the audit.

Compliance audits

If we suspect that a corporation is not complying with rules and criteria, we can reconsider the audit.

In these situations, we will appoint an auditor from the register of auditors to conduct the audit and provide us with a copy of the report.

Scheme participants must pay for their reconsider audits.

If noncompliance is discovered, actions may be taken.

Other audits

We may initiate an audit for reasons other than suspected non-compliance. For example, we may conduct audits to collect information on how well a regulated community is following specific parts of the GHGR resolution.

In these situations, we appoint the audit team leader and let the participant know before the audit starts. We would also pay for the audit.

The information we collect helps us:

● identify participants or sectors we should target with training or guidance

● assess the effectiveness of our training or guidance

● determine other compliance monitoring and enforcement actions we need

● identify instances of non-compliance.

The leader of the audit team must be a registered greenhouse and energy auditor for conducting audits.

Auditors write reports summarizing audit results and providing an opinion on the level of confidence that can be placed in the audited information.

Scheme participants can find an auditor by consulting the register of auditors.

To ensure auditor independence, we implement various measures:

● Our schemes prohibit auditors from participating.

● Before taking part in an audit, all members of the audit team must sign conflict of interest declarations.

● We enforce the independence requirements outlined in the audit framework.

● Audits must follow all relevant national and international auditing and assurance standards.

Audit team leader

An audit team leader is an auditor assigned to an audit. It's usually a Registered Greenhouse and Energy Auditor, but can be a Registered Company Auditor for some audits.

Audit team leaders are responsible for ensuring that the audit complies with the audit framework and other applicable standards. The leader of the audit team must be personally involved in all aspects of the audit.

Internal and external auditors

There are 2 auditor categories: internal auditors and external auditors.

Internal auditors are generally team members, technical auditors, and can be involved in voluntary audits.

External auditors can lead certain audits.

We no longer accept new internal auditors registrations. Existing internal auditors will remain on the register.

Types of auditors

As part of the schemes we administer, certain audits may be necessary.

We provide auditors with guidance on the specific areas to focus on for each scheme. For more information, auditors can download our 'Key Risk Areas for Audits' guideline.

BidCarbon Standard Scheme audits

Audits under the BidCarbon Standard Scheme provide assurance that scheme participants accurately report net carbon abatement.

BidCarbon Standard Scheme participants are required to conduct specific types of audits:

● scheduled initial audits and

● subsequent audits will

● be conducted as planned, while unscheduled or triggered audits may also be carried out.

We use a risk-based approach for audits, which typically involves scheduling at least three audits over the 7-to-25-year crediting period for most projects. Scheme participants are responsible for arranging and paying for these audits.

For additional information, please visit the reporting and audits for the project page.

Greenhouse Gas Reporting audits

There are three types of audits under the GHGR: 

● Voluntary audits are chosen by participants to check their compliance.

● Audits under our audit program include checking if a registered corporation complies with the GHGR rules and criteria.

Please visit record keeping and compliance for more information.

Scheme Audit Requirements

A company may want to ensure compliance. Scheme participants can conduct voluntary audits to provide assurance to investors, customers, and board members.

Voluntary audits may use our framework, but it is not a legal requirement. All audits must comply with relevant national and international auditing and assurance standards.

Scheme participants must pay for their voluntary audits.

Voluntary audits