Methodology Update—Fall 2014 (for performance audits)
Nov-2014

This update highlights changes to the Performance Audit methodology that will be in place in the fall 2014. It includes changes to the performance audit manual, TeamMate procedures, and templates.

Effective date: Immediately upon release.

Updates to TeamMate and Templates

Summary of Changes

A significant number of audit procedures in TeamMate (44) have been updated. The changes focus mainly on the following elements:

  • Introduction of changes regarding language requirements when sending the PX draft and the DM draft for comments to the audited entities. It is no longer mandatory to submit the DM draft in both official languages. These drafts can now be sent in one official language only, following entities’ language preferences. As a result, the T‑minus schedule was reviewed and integrates T‑minus options depending if the drafts (PX and DM) are provided in both official languages or not.
  • Changes made in various audit procedures to reflect recent decisions regarding roles and responsibilities between the audit AAG, the audit principal and sometime the audit director. As a result, all letter templates were reviewed and updated to reflect new signatory roles. Also, the chapter content approval by the audit AAG is no longer required.
  • Integration of the new approach regarding the involvement of the Auditor General. As a result, one audit procedure (Examination Phase AG Briefing) was deleted and three new audit procedures were created (Early Planning Phase AG Briefing, Pre-internal draft discussion with the AG; and DM Draft Discussion with the AG).
  • Integration of the report mapping approach and the interactive reporting model into TeamMate. The “Message Development Session” is replaced by the “Report Mapping Session” and new tools such as Finding blocks template were created. The Credible first draft guidance document is replaced by the Writing an Audit Report guidance document and the Chapter template was completely redesigned.
  • Integration of the electronic management of controlled documents using the Controlled Documents Interface (CODI) and development of new tools such as: CODI Validation Form, CODI Email Template, CODI Guidance for OAG Employees; and CODI Instructions for Entity Officials. The Missing Numbered/Controlled Documents Letter is removed from TeamMate. Also, the Register of Controlled Documents was updated to continue using it with external advisors and third parties only, for whom we still provide hardcopy documents.
  • Introduction of the Value Added concept. As a result, the Chapter Submission template and the Audit Logic Matrix (ALM) were updated.
  • The instructions in the “Substantiation” audit procedure were updated to clarify roles and responsibilities regarding substantiation before the issuance of the PX and DM drafts; to ensure that the substantiation is done at the appropriate time; and to clarify the level of effort needed.
  • Introduction of a new mandatory “Entity and Subject Matter Risk Assessment” that is replacing the “Optional—Entity Risk Assessment” audit procedure. A new Preliminary Screening Form on Subject Matter and Entity Risk replaces the Entity Risk Assessment Checklist.
  • Modification of the process to manage hardcopy documents received from entities (such as response to the Letter of notification, response to APS, comments received on the drafts from audited entities or from third parties), that no longer need to be kept in the paper file. Once these documents are scanned and saved electronically in TeamMate the hardcopy documents can be discarded.
  • Abolition of the ALM Review Committee (ALMRC) that is no longer needed.
  • Modification of the examination approval process where the approval from the quality reviewer is no longer required.
  • Modifications made in some audit procedures to ensure the mandatory use of the Disposition of Advice Received Through Consultations template when consulting Internal Specialists.
  • Modifications made to the “Presenting Preliminary Findings to the Entity” audit procedure to ensure that preliminary findings presentations include senior entity officials.
  • Integration of all the changes made in TeamMate and the audit process into the T‑Minus Schedule that is now available on the Product Tracking page.

Refer to the Table of Changes to Performance Audit—November 2014 for a description of the nature and extent of changes.

How This Affects YOU:

Audit teams with audit work currently underway

Continue using your current TeamMate file. Update your fileto incorporate changes that are effective immediately, using the Table of Changes found in the link above.

  • Import relevant audit procedures, as needed using “Get Programs,” and replace sub-folders and/or audit procedures where work has not yet started.
  • Do not make changes to audit procedures that are completed.
  • Save the Table of Changes in your TeamMate file under the “Significant Judgment” subfolder and link to it as necessary.

Audit teams that have not yet created their TeamMate file (Spring 2016 or later)

As of November 6, changes are incorporated into the new TeamStore for Performance Audits. See Table of Changes.

Updates to the Manual

Updates to the Performance Audit Manual were made to reflect changes made in methodology, policies and processes, or to align with changes to TeamMate procedures and templates.

Highlights of changes:

  • (OAG Audit 7025)—Pre-internal draft discussion with the Auditor General. This new section was created to reflect the changes made to the Auditor General’s early involvement in the audit process.
  • (OAG Audit 7030)—Drafting the chapter. This section was updated to integrate the Report Mapping approach and to provide additional guidance to draft a conclusion.
  • (OAG Audit 7050)—Examination Phase Auditor General Briefing. This section was deleted to reflect changes made to the early involvement of the Auditor General.
  • (OAG Audit 7060)—Substantiating the chapter. This section was completely reviewed and new policies were added to clarify roles and responsibilities regarding substantiation. Some clarifications were also provided to ensure that the substantiation is done at the appropriate time.
  • (OAG Audit 8017)—Chapter Content Approval and date of the report. This new section was created to provide guidance to teams on the notion of date of the report.
  • (OAG Audit 8018)—DM Draft Discussion with the Auditor General. This new section was created to reflect the changes made to the Auditor General’s involvement in the audit process.
  • (OAG Audit 8020)—Recommendations and entity responses. This section was updated to provide additional guidance to audit teams when preparing recommendations and addressing entity responses.
  • (OAG Audit 8090)—Preparation for tabling. This section was updated to reflect the changes made to the process and the introduction of the Audit at a Glance.
  • (OAG Audit 9020)—Management of controlled documents. This section was completely reviewed and new policies were introduced to electronically manage controlled documents using the Controlled Documents Interface (CODI).
  • Fourteen other sections of the manual underwent editorial changes.
  • All references to CICA standards were replaced by CPA Canada.

If you have questions or need assistance, please contact the Performance Audit Practice Team, using the PAPT mailbox.