2010 Project Management

Aug-2021

Completing audits on time

To ensure that audits are performed in an effective manner and completed on time, the OAG establishes a timeline as guidance with interim deadlines to complete specific audit deliverables.

Audit teams should be aware of the dates of upcoming deliverables and must allocate sufficient time to

• carry out the work (OAG Audit 4044 Developing the audit strategy: audit logic matrix, and OAG Audit 4070 Audit programs);

• conduct any required consultations (OAG Audit 3081 Consultations, OAG Audit 2040 Discussions with the Auditor General, and OAG Audit 2050 Advisory Committee meetings); and

• review drafts with the entity (OAG Audit 8019 Submitting the principal’s (PX) draft and transmission draft).

Completing audits within budget

A global budgeted amount is included in the audit report submission for a performance audit or in the special examination schedule for a special examination. As well, each audit is allocated a certain number of hours and dollars.

Audit directors are accountable for allocating the budget for each of their audits. This is done by

• identifying how many hours by fiscal year;
• identifying main tasks that will need to be performed to complete the audit;
• determining how many hours main tasks will take and who will complete the work;
• determining travel costs for the audit; and
• determining contract costs (e.g. consultants) for the audit.

The total of these costs determines the audit budget. Auditors who will work on the audit may have different degrees of availability, so it is important to map the hours required for the audit to the hours available.

Audit team members at all levels are expected to manage budgets with due diligence. This means that they should contribute to budget decisions and monitor audit projects using a no surprise approach.

The examination approval process (OAG Audit 4080 Examination approval) requires sign-offs to attest that the planning phase work has been completed and the budget is finalized.

Monitoring progress

Throughout the audit, the engagement leader monitors the use of resources against the budget to ensure that milestones are met and that any variances are noted and managed. The engagement leader may delegate some of these responsibilities to the director and other team members.

Audit team members must remain vigilant throughout the audit and continuously monitor work progress against the established plan and should react and adapt to situations that could arise. If the timing of any of the key milestones changes, the team needs to assess the possible impact on producing the final audit report.

Project management tools

The audit logic matrix and the associated audit programs that are developed are efficient tools used to manage audits and to help the audit team focus on what was decided during the audit’s planning phase.

The audit logic matrix is a planning tool that sets out the audit approach to be followed during the audit’s examination phase, and contributes to planning efficient and effective audits. This tool describes the logical relationship between the audit objective, criteria, audit approach, and findings that could emerge. It provides the audit questions to be answered, the evidence-gathering and analysis methods to be used, and any data limitations and potential messages for the intended users. For further information, see OAG Audit 4044 Developing the audit strategy: audit logic matrix.

Audit programs are directly linked to the audit logic matrix and contain detailed information about the audit work to be conducted. Audit programs provide detailed information in order for team members to understand what needs to be done during the audit’s examination phase, and contain an estimated budget and timeline to complete identified audit steps. Audit procedures may be documented in the ALM or in separate audit programs. For further information, see OAG Audit 4070 Audit programs.

Audit documentation and approvals

The OAG’s electronic audit working paper software provides detailed information on audit documentation that must be retained and approvals that must be obtained. Key documents and approvals include but are not limited to the following:

Key documents

• each audit team member’s completed and signed Independence Confirmation form;

• the audit logic matrix;

• the audit plan summary or the special examination plan;

• detailed audit programs specifying the work to be carried out and work completed;

• the documentation showing the comments and advice from external advisers, Legal Services, internal specialists, the Auditor General, and the quality reviewer (if any); and the disposition of advice received (i.e., the decisions taken by the engagement leader, based on advice received);

• the documentation showing entity management comments on the draft audit reports and how they have been addressed;

• a list of hard copy controlled documents sent to the entity; and

• letters related to the engagement and respective responses.

Key approvals

• the approval of the audit (as appropriate),
• examination approval,
• report content approval, and
• publication approval.

General project management considerations

Audits must be completed in compliance with OAG policies and CPA Canada assurance standards (OAG Audit 1011 CPA standards in the context of a direct engagement and OAG Audit 1012 Audit quality, including roles and responsibilities for audit quality).

In addition to completing the audit on time and within budget, effective project management involves

• allocating work to team members so that they are not underutilized or overloaded;

• allocating work to team members to help them develop expertise, or to benefit from their expertise, as required;

• motivating and coaching team members, and keeping them focused and aware of progress;

• encouraging team members to bring concerns forward so that problems can be discussed and solved in a timely manner;

• planning for contingencies so that if a step does not go as expected, there is an alternative plan;

• being aware of potential bottlenecks in the audit process and planning for this; and

• being aware of how decisions on one aspect of the audit could affect other aspects (e.g., taking more time on one audit step will reduce the time available for other steps).