Auditing

Under the BidCarbon Standard Scheme, BidCarbon Foundation will implement a risk-based audit approach.

This approach aims to simplify audit requirements while maintaining the credibility of BidCarbon removal units (BRUs). For the majority of projects, this audit method will necessitate scheduling at least three audits throughout the seven-year credit period.

The aim of all audits is to ensure reasonable certainty that the abatement reported on is truthful and reliable.

Audit requirements

All audits must be undertaken by a auditor registered under the Greenhouse Gas Reporting Specifications. For further information, please see About the Greenhouse Gas Reporting Scheme.

The cost of audits falls under your responsibility. It is recommended that you involve your auditor in the early stages of project development to establish costs if bidding into an auction and ensure that sound reporting and record-keeping processes are in place from the outset.

You must provide the auditor with all necessary documents and information, including records, receipts and other supporting documentation.

In addition to hiring an auditor, it may be beneficial for you to seek the guidance of a consultant to aid in the development of your project. Please note that the auditor and consultant should not be affiliated to evade potential conflicts of interest that may impair the integrity of audits under the BidCarbon Foundation.

Auditors must maintain independence from the entities they audit. To uphold impartiality, auditors should avoid involvement in any of the schemes administered by the BidCarbon Foundation.

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

● participate as a proponent, agent or investor in an BidCarbon Standard Scheme project,

● bid in BidCarbon auctions, or

● trade in BRUs.

If an auditor becomes aware of a conflict of interest situation when conducting an audit, they must take all reasonable steps to ensure the situation is resolved. Where conflicts are not remedied, or exemptions are not provided, the auditor must cease involvement with the audit.

Conflict of interest

Auditors provide their company, location, and nominated specialisations on the Register of GHG Auditors, aiding participants in choosing an appropriate auditor. The BidCarbon Foundation does not verify any specialisations nominated by registered auditors.

It is advised that participants take into account the specialisations of potential auditors when selecting one. It is not sufficient to base the decision purely on price. It is recommended that participants verify an auditor's experience and level of skill under the relevant method before engaging them.

Selecting an unsuitable auditor can prompt the BidCarbon Foundation to request additional information in relation to the audited matter, and you may be subject to further compliance monitoring.

While auditors mostly adhere to legislation, it is possible to come across examples of poor performance or non-compliant behaviour.

We suggest that any incidents of non-compliance or poor performance are reported to the agency. This information will help shape our approach to compliance management for auditors.

Please contact audit@bidcarbon.org if you wish to raise any concerns regarding an auditor's performance. All information provided will be kept anonymous.

Choosing an auditor

To ensure impartiality, we suggest that project proponents involve a minimum of two primary auditors from different audit firms during the project cycle. For instance, in a project requiring three audits, we advise scheduling another primary auditor from a different firm to examine one of the remaining audits after the first audit.

The BidCarbon Foundation can increase its confidence in your project by involving at least two primary auditors from various companies. If you fulfil this requirement, your project is less likely to be chosen for further audits.

Auditor rotation

There are three types of audits under the BidCarbon Foundation.

● Initial audits

● Subsequent audits

● Threshold audits

Audit types

The BidCarbon Foundation will set an audit schedule for your project. This schedule will be provided at the time of project registration. The audit schedule will set out the level of assurance, frequency, and scope of audits required for your project.

For most projects, a minimum of three scheduled audits is required across the seven-plus year crediting period. The number of scheduled audits will be determined by the size of your project in terms of the average annual abatement that is expected to be generated.

The number of subsequent audits required for a project is dependent on the abatement forecast in the project's carbon abatement estimate. The BidCarbon (Carbon Farming) (Audit Thresholds) Instrument  (Audit Threshold Instrument) will be used as a basis to determine the number of audits to be scheduled. This instrument sets out the audit threshold.

Audit frequency