The oil and gas industry is the backbone of most economies, including that of the UAE as they generate a huge amount of wealth and contribute to the development of the nation. Due to the sector's sensitive nature, auditing carries significant responsibility toward financial transparency, operational efficiency, and varying degrees of compliance. Such a mammoth task with all its intricacies from exploration to distribution requires specialized expertise to complete thorough audits. Independent auditing is necessary to maintain the credibility of financial statements, detect irregularities, and ensure that they fairly reflect the business entity's financial positions, results, and cash flows with such internal biases eliminated.
The regulations governing the oil and gas industry in the UAE are specific. Therefore, adherence to local legislation and international standards is compulsory. Knowledge about regulations would be essential for auditors to understand the situation of the company and to guide them to adhere to legal standards and practices for business. Global environmental pressures, economic pressures, and overall market dynamics of this region call for specialized, independent auditing for such a core industry.
Reyson Badger offers full services to meet the vast differences in business requirements in today's challenging setting. Our professional personnel are dedicated to our specialty as the way to quality solutions that help customers achieve better financial performance and adherence. Here is a general overview of our main services:
1. Accounting and Bookkeeping Services
We provide accurate financial records and timely reporting to businesses, which ranges from recording daily transactions up to a monthly financial statement that is, organizing the necessary financial data to be available for decision-making.
We provide strategic business advisory services that will help you navigate the challenges and seize the opportunities as well. We offer our clients business planning, operational efficiency, risk management, and market analysis expertise, thus enabling them to make informed decisions in pursuit of growth.
3. CFO and Controller Services
Our CFO and controller services provide you with professional financial leadership without the overhead of a full-time executive. We have experience in financial planning, budgeting, forecasting, and performance analysis to allow you to focus on your core business while we can handle financial strategy management.
Our internal audit services provide an opportunity for organizations to assess their internal controls, risk management processes, and operations efficiency. We meticulously check where things could be improved so that your organization can run effectively and within the confines of applicable regulations.
We provide independent, external auditing services. This will give your financial statements much credibility. We allow our auditors to review transparently and comprehensively to the required regulatory standard. This thus makes the stakeholders confident in the reporting on the financial aspects.
6. Tax Audit Consultation with VAT Filings
Our tax audit consulting service would ensure all proper tax regulation compliance while optimally working with your existing tax position. In addition to the help that is provided on support for VAT returns, we will prepare any documentation required as part of the audit and provide further guidance on several tax planning strategies that can be carried out to minimize future liabilities. Building from this solid foundation across these service areas, at Reyson Badger we remain committed to supporting the financial health and operational success of your business. Contact us today to learn how!
Oil and gas companies have two primary accounting methods for their exploration and production activities: the Full Cost (FC) method and the Successful Efforts (SE) method. The choice of method can significantly impact a company's financial statements and the audit approach. Here's how auditors handle these differences:
Full Cost (FC) Method
Under the FC method, companies capitalize all costs related to exploring for and developing oil and gas reserves, regardless of whether the efforts are successful or not. These capitalized costs are then amortized over the life of the proven reserves.
When auditing an FC company, auditors focus on:
Successful Efforts (SE) Method
In contrast, the SE method only allows companies to capitalize on costs related to successful exploration efforts that discover commercially viable reserves. Costs of unsuccessful efforts are expensed immediately.
Auditors of SE companies pay attention to:
Implications for Financial Statements and Audits
The financial statements of a business can be greatly affected by the accounting technique selected:
There are several laws and regulations within the UAE to which oil and gas companies are liable in governing their operations. Some of them include:
There are several international standards to which international oil and gas companies must adhere. These include but are not limited to:
1. International Financial Reporting Standards (IFRS): These are standards for financial reporting that enhance the transparency and comparability of financial statements prepared in different jurisdictions. IFRS is highly relevant to oil and gas companies because their financial transactions and valuations of their assets are highly complex.
2. ISO Standards: The oil and gas industry adheres to most of these ISO standards, such as:
In performing effective auditing for oil and gas, there are several best practices that organizations ought to adopt. They include: Significance of Specialized Industry
Audits play a strategic role in maintaining the financial integrity of oil and gas companies, mainly through compliance with regulatory requirements and improving operational efficiency. Not so obviously, active auditing reduces risks such as violation of the law, financial misstatement, or inefficiency in operations. Now, thanks to the capabilities Reyson Badger poses in oil and gas auditing, companies can engage the services of tailored auditing solutions that will enable them to guarantee compliance with specific industry regulations as well as international standards but also offer them opportunities for better management of their operations and issues at risk.