B.1 Corporate Audit Policy

  1. Auditing activities play an essential and useful role in the conduct of successful operations. These activities serve to examine and evaluate financial, administrative, and operational activities of the Office of the Auditor General of Canada (Office), supplying management with information to assist in controlling its assets and operations, and its attainment of objectives for which it is responsible. This policy applies to auditing's relationship with all Office organizations and sets forth the guidelines upon which these activities will be carried.

Audit Committee

  1. The Audit Committee is an essential part of governance and of the internal audit regime established by the Financial Administration Act (FAA) and the Policy on Internal Audit. The policy makes the Auditor General responsible for establishing and maintaining an independent committee that includes a majority of external members.

  2. The Audit Committee assists the Auditor General as deputy head in fulfilling his oversight responsibilities for the financial reporting process, the system of internal controls, the audit process, and the Office’s process for monitoring compliance with laws and regulations and the code of conduct. The committee is composed of no less than three voting members, including the Auditor General and at least two external members. All external committee members are both independent of the Office and financially literate. At least one member shall be designated as a “financial expert” as defined by applicable legislation and regulation. The committee’s non-voting ex-officio members include the Chief Financial Officer and the General Counsel.

  3. The Audit Committee’s authority and responsibility should be tailored to fit the Office’s needs and be consistent with the applicable legislative and regulatory requirements.

  4. The Audit Committee’s authority and responsibility will be set out in an Audit Committee Charter to be reviewed and approved annually by the Audit Committee and the Auditor General.

  5. A secretary is appointed by the Executive Committee to assist the Audit Committee to exercise its role, responsibilities, and duties. This includes

    1. the timely preparation and distribution of all meeting agendas;

    2. the coordination and distribution of all reports/documents related to committee business; and

    3. the timely preparation and distribution of all Records of Decision (ROD) and meeting minutes.

  6. Audit Committee members shall receive orientation and training materials relevant to the operations of the Office’s Audit Committee. These briefing materials will be updated as necessary.

Office Management

  1. Management is responsible for the preparation and integrity of the Office’s financial and operating statements and all related information and disclosures that appear or should appear in reports made public or submitted to regulatory authorities.

  2. To ensure effective risk management and reliable financial and operational reporting, management is responsible for establishing and maintaining an effective system of internal controls designed to provide reasonable assurance regarding the achievement of objectives in the

    1. reliability of financial and operational reporting,

    2. safeguarding of assets,

    3. compliance with laws and regulations,

    4. effective and efficient operations, and

    5. attainment of business objectives.

  3. Management is responsible for working diligently with external and internal auditors to ensure effective and efficient audits, jointly developing improvement actions, and promptly implementing agreed actions.

  4. Managers provide leadership and direction, and are responsible for establishing and communicating control procedures, assigning specific control responsibilities, and performing ongoing self-assessments. The self-assessment process and results are to be shared with Practice Review and Internal Audit (PRIA).

Independent Professional Public Accountants

  1. The independent professional public accountants are retained to audit the Office’s financial statements. As part of the examination, they are required to report to the Audit Committee any significant deficiencies regarding the Office’s internal control systems over financial reporting. Their audit is conducted in accordance with Canadian Auditing Standards and provides an independent assessment that helps ensure fair and complete presentation of the Office’s financial position and results of operations.

  2. The Treasury Board Secretariat will appoint the Office’s independent professional public accountants to assure the conduct of audits as required by statutory regulations. To ensure their independence, the independent professional public accountants are usually prohibited from providing non-audit services related to the accounting records or financial statements, financial system design and implementation, appraisal or valuation, internal audit services, and legal and other expert services unrelated to the audit. The Audit Committee will review and recommend for the Auditor General’s approval non-audit services to assure that such independence is not impaired. The independent professional public accountants will also periodically meet privately with the Audit Committee.

Practice Review and Internal Audit

  1. PRIA activity is established to provide independent, objective assurance and consulting services designed to add value and improve the Office’s operations. It helps achieve the Office’s objectives by bringing a systematic, disciplined approach to evaluate risk management, control, and governance processes. It performs ongoing evaluations of internal controls, advises the Audit Committee, Auditor General, management, and the independent professional public accountants on the results of their evaluations, and makes recommendations to improve risk management, control, and governance processes.

  2. Comprehensive PRIA reports will be produced to provide management with evaluations of the effectiveness of internal controls over accounting, operational, and administrative functions. The internal auditors will take into consideration that the PRIA activity is always to be conducted with the highest standards of business ethics, integrity, and honest dealings in all areas and functions within the Office and with all outside parties.

  3. PRIA’s authority and responsibility will be set out in an activity charter, which will be reviewed and approved annually by the Audit Committee and the Auditor General.

Last modified:
2018-02-10