Question 2 - Cost Centers to Assets Match - Part of the 10 Questions An Oil and Gas Company Should Ask Their Auditors

This is the second question in the list of ten questions to ask your auditor if you are a Canadian based oil and gas company. The original post can be found here.

The question was:

How do your auditors tie up every cost center to your assets?

Cost centers allow companies to put the appropriate expenditures against the appropriate budget. This question can probably be best answered by asking a few more questions.

How can you auditors tie up cost centers to assets if they can’t create an authentic asset list or well list?

If your auditor cannot tie up cost centers, then how can they authenticate expenditures?

If you cannot tie up expenditures, then how do you know exactly what your company is spending?

Pretty straight forward, no match to an asset, then there is a possibility that errors can creep in.

These opinions are mine and may not reflect your view. If you would like to contact me, then please feel free to do so at info@argentis-group.com. Argentis Group assists oil and gas companies with operational audits to identify areas to reduce costs, increase revenues and increase the overall asset value of an oil and gas company.