D.14 Coordination with External Financial Auditors

  1. Oversight of the external audit work is generally the responsibility of the Audit Committee. This oversight extends to coordination of work between the external and internal auditors.

  2. If the external auditors plan to rely on internal audit work, the Chief Audit Executive (CAE) will coordinate internal and external audit efforts to minimize duplicate audit efforts, while remaining cognizant of the effective use of the Practice Review and Internal Audit (PRIA) staff.

  3. On an annual basis, the following activities should take place:

    1. meeting regarding the audit universe of the Office of the Auditor General of Canada (Office), risk assessment updates, audit plans, and the PRIA annual plan and schedule;

    2. meeting regarding the plans of the external auditors and the appropriate cost-effective level of direct or indirect assistance required and available;

    3. if there is a planned reliance on internal audit, access to each other's detailed risk assessments, audit programs, internal control documentation, and working papers should be given. Such access is important to satisfy each other for purposes of relying on one another’s work;

    4. common understanding of audit techniques, methods, audit approach, and terminology to effectively coordinate their work and to rely on the work of one another;

    5. communications regarding announcements when audits are scheduled to begin and the specific audit objectives that have been established;

    6. exchange of audit reports and management letters;

    7. exchange of information to be reported to the Office's Audit Committee to affect a mutual understanding of audit issues and to present a coordinated picture of total audit efforts; and

    8. external auditors may be required by their professional standards to ensure that certain matters are communicated to the Auditor General. The CAE should communicate with external auditors regarding these matters so as to have an understanding of the issues. These matters may include

      1. issues that may affect the independence of the external auditors,
      2. significant control weaknesses,
      3. errors and irregularities,
      4. illegal acts,
      5. management judgments and accounting estimates,
      6. significant audit adjustments,
      7. disagreements with management, and
      8. difficulties encountered in performing the audit.

Last modified:
2018-02-19