Document ID: chunk:federal_register_of_legislation:F2025C00080:clause:1_74
Version: federal_register_of_legislation:F2025C00080
Segment Type: clause
Provision Reference: sch 1 cl 74
Character Range: 208447–210394

74  Initial audits
 (1) Unless the project is an alternative assurance project—the first scheduled audit for an eligible offsets project must be an initial audit.
Note: If an alternative assurance project is required to undertake one or more scheduled audits, the audit schedule will specify whether or not the first schedule audit is an initial audit.

Scope of initial audits
 (2) The audit must be about whether, in all material respects:
 (a) the project has, during the period of time covered by the audit, operated and been implemented in accordance with:
 (i) the section 27 declaration that is in operation for the project; and
 (ii) the methodology determination used for the project; and
 (iii) the requirements of the Act; and
 (b) the project proponent has, during the period of time covered by the audit, met the requirements specified in the applicable methodology determination under subsection 106(3) of the Act; and
 (c) the offsets reports that cover the period of time covered by the audit have been prepared in accordance with section 76 of the Act.

        (2A) If requested in writing by the Regulator after agreement between the Regulator and the project proponent, the initial audit must also be about any matter identified by the Regulator in a risk‑based assessment of the project.
 (3) The audit must cover the longest of the following periods:
 (a) the first reporting period for the project;
 (b) the first 6 months of the project.
 (3A) However, if the initial audit is required after a variation to the audit schedule under paragraph 73(5)(ab), the audit must cover a period of not less than 6 months specified in the varied audit schedule provided under subsection 73(6).

Transitioning projects
 (4) However, this section does not apply in relation to a transitioning project if an audit report for the project was given to Regulator in accordance with paragraph 76(4)(c) of the Act before the commencement day.