Annual Audit Manual
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11016 Examples of reporting non-compliance with authorities
Jun-2019
Overview
This topic explains:
- Examples of reporting non-compliance with authorities
OAG Guidance
The following examples are based on the previous auditor reporting model and before the introduction of the enhanced auditor reporting standards in CAS 700 and in AuG‑49.
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Atlantic Pilotage Authority (2008)—Auditor’s report From July 1, 2008 to December 31, 2008, in response to rising fuel prices, the Authority charged users $255,000 in fuel expense recovery charges that were not in regulations approved by the Governor in Council. Subsection 33(1) of the Pilotage Act requires that all pilotage charges be set out in regulations and approved by the Governor in Council. These charges are not prescribed by regulation in accordance with the requirements of the Pilotage Act. Further, in my opinion, except for the fuel expense recovery charges described in the preceding paragraph, the transactions of the Authority that have come to my notice during my audit of the financial statements have, in all significant respects, been in accordance with Part X of the Financial Administration Act and regulations, the Pilotage Act and regulations, and the by-laws of the Authority. |
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Canadian Dairy Commission (2008)—Auditor’s report Further, in my opinion, except for the Commission’s transfers of funds between the loans from the Consolidated Revenue Fund and a line of credit from a commercial bank, as described in Note 7, which are not allowed under the Canadian Dairy Commission Act, the transactions of the Commission that have come to my notice during my audit of the financial statements have, in all significant respects, been in accordance with Part X of the Financial Administration Act and regulations, the Canadian Dairy Commission Act and regulations and the by-laws of the Commission. |
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Canadian Polar Commission (2011) (Report in accordance with CAS 700) Report on Other Legal and Regulatory Requirements In my opinion, the transactions of the Canadian Polar Commission that have come to my notice during my audit of the financial statements have, in all significant respects, been in accordance with the Canadian Polar Commission Act with the exception that the Canadian Polar Commission did not maintain at least one office at a place north of sixty degrees north latitude as required by section 14(2). Note 2 (b) to these financial statements notes that the Canadian Polar Commission closed its last northern office in January 2000 in order to contain costs. |
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Northwest Territories Power Corporation (March 2010) […] As required by the Financial Administration Act of the Northwest Territories, I report that, in my opinion, these principles have been applied on a basis consistent with that of the preceding year. Further, in my opinion, proper books of account have been kept by the Corporation and its wholly-owned subsidiaries and the consolidated financial statements are in agreement therewith. In addition, the transactions of the Corporation and its wholly-owned subsidiaries that have come to my notice during my audit of the consolidated financial statements have, in all significant respects, been in accordance with Part IX of the Financial Administration Act of the Northwest Territories and regulations, the Northwest Territories Power Corporation Act, the Public Utilities Act and the by-laws of the Corporation and its wholly-owned subsidiaries, with the exception that the Corporation did not meet its statutory deadline for submitting its annual report to its Minister as described in the following paragraph. Section 100 of the Financial Administration Act of the Northwest Territories requires the Corporation to submit its annual report to its Minister not later than 90 days after the end of its financial year, or an additional period, not exceeding 60 days, that the Minister of Finance may allow. The Corporation did not meet its statutory deadline for the year ended March 31, 2010. |
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Telefilm Canada (2004)—Auditor’s report The majority of the Corporation’s expenses shown in the statement of operations and equity of Canada are related to the development of the television (Canadian Television Fund – Equity Investment Program), new media (Canada New Media Fund) and music (Music Entrepreneur Program) industries. As described in note 1 of the financial statements, the Corporation’s objects and powers under the Telefilm Canada Act are limited to fostering and promoting the development of a feature film industry in Canada. In my opinion, expenses incurred to develop the television, new media and music industries are not consistent with the Corporation’s legal mandate in the development of the feature film industry. Further, in my opinion, proper books of account have been kept by the Corporation and the financial statements are in agreement therewith and, except for the Corporation’s activities to develop the television, new media and music industries described in the preceding paragraph, the transactions of the Corporation that have come to my notice during my audit of the financial statements have, in all significant respects, been in accordance with the Telefilm Canada Act and the by-laws of the Corporation. |
OAG Guidance
The following example is based on the previous auditor reporting model and before the introduction of the enhanced auditor reporting standards in CAS 700 and in AuG‑49.
Government of Yukon (March 2008)
During the year ended 31 March 2008, as described in Note 8, the Government invested a total of $223 in non-bank asset-back commercial paper. These investments did not comply with the investment policies included in section 39(1) of the Financial Administration Act.
Further, in my opinion, except as described in the above paragraph, the transactions of the Government and of those organizations listed in Note 2(a) to the consolidated financial statements that have come to my notice during my audit of the consolidated financial statements have, in all significant respects, been in accordance with the Government’s powers under the Yukon Act and the Financial Administration Act and regulations and the legislative authorities and by-laws governing the organizations listed in Note 2(a).