Audit Methodology Update—December 2019

Dec-2019

Target Audience: All Direct Engagement Auditors.

Effective date: The revised methodology is effective upon release. For audits that are currently underway, auditors should apply the revised methodology and tools moving forward.

Copyright: CPA Canada Handbook sections and excerpts are reproduced herein for your non-commercial use with the permission of The Chartered Professional Accountants of Canada (“CPA Canada”). These may not be modified, copied or distributed in any form as this would infringe CPA Canada’s copyright.

Description of subject: The update includes changes to the Direct Engagement Manual, TeamMate procedures and templates. Changes to the methodology are summarized below.

Questions: Contact DEPT

Key changes are:

• Editorial Services and Report Communications reviewed all the report templates to improve the format and to embed instructions. Separate instructions documents were removed.

For performance audits (the following 3 bullets do not apply for special exams)

• Added the new visual “one-pager” to brief the Auditor General in the performance audit methodology. This visual one-pager can be used throughout the audit at meetings with the Auditor General.

• Added the new template “Findings Summary” which can replace the Findings Blocks template in performance audits.

• Updated the performance audit, independent review and study report templates to include optional text to report on work related to the United Nation’s sustainable development goals.

Updates to the Manual

Revisions have been made to the Direct Engagement Manual sections. The following is a summary of revisions other than editorial or minor revisions.

Direct Engagement Sections                                                                                  

Section	Section Title	Nature of Changes
2040	Discussions with the Auditor General	Included references to the one-pager to brief the Auditor General.
7030	Drafting the Audit Report	Removed references to Findings Blocks.
8090	Preparation for Tabling of Direct Engagement Reports	Included a reference to the one-pager to brief the Auditor General.

Updates to TeamMate Audit Procedures (for performance audits only)

A number of revisions have been made to the TeamMate TeamStores for Performance Audit. The audit procedures were updated to reflect the changes made to the Direct Engagement Methodology to make it consistent with current practices. There were no key structural changes made to the performance audit TeamMate procedures.

Audit teams with audit work currently under way should continue using their current TeamMate file. Update the file to incorporate changes that are effective immediately, for the procedures not yet started, using the tables of changes below.

• 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.

• If needed, include the changes to TeamMate from this update under the “Documentation of Significant Judgments” subfolder and link to it as necessary.

Audit teams that have not yet created their TeamMate file should use the new TeamStore for Performance Audit that incorporates the changes.
The following is a summary of the revisions to the TeamMate procedures, other than editorial or minor revisions. Ensure you have the updated procedure step for those steps not yet started.

Performance Audit TeamStore

Program (PRG)	Procedure Step	Change
A.6.PRG—Early Planning Phase Meeting / Early AG Engagement Meeting	Early AG Engagement Meeting	Added the new visual one-pager to brief the Auditor General.
C.2.PRG—Audit Scope and Approach / Planning Phase AG Briefing	Planning Phase AG Briefing	Added the new visual one-pager to brief the Auditor General.
D.1.PRG—Examination Work and Preliminary Findings / INSTRUCTIONS—Work on Audit Programs	INSTRUCTIONS—Work on Audit Programs	Added the new template Findings Summary.
D.2.PRG—Internal Draft and Consultation / Report Mapping Session	Report Mapping Session	Added the new template Findings Summary. Added the new visual one-pager to brief the Auditor General and updated the process.
D.2.PRG—Internal Draft and Consultation / Findings Discussion with the AG	Findings Discussion with the AG	Added the new visual one-pager to brief the Auditor General.
D.2.PRG—Internal Draft and Consultation / Prepare Internal Draft and Consult Internally	Prepare Internal Draft and Consult Internally	Deleted the Instructions for Completing the Performance Audit Report.
E.1.PRG—PX Draft / Prepare PX Draft	Prepare PX Draft	Added the new visual one-pager to brief the Auditor General.

Updates to Templates

Revisions have been made to some templates. With the exception of those documents identified as being specific to performance audits or special examinations, all templates and guidance documents listed below apply to both practices. The following is a summary of all revisions other than editorial or minor revisions.

Direct Engagement Guidance and Templates

Phase	Template or Guidance Name	Change
General	Auditor General’s Involvement and Advisory Committee Meetings (for performance audits)	Added the new visual one-pager to brief the Auditor General.
General	T Minus schedule—Performance Audits	Moved the findings discussion with the Auditor General from T‑26 to T‑27 so it occurs closer to the Report Mapping session.
Planning	Special Examination Plan	Reflected changes to the report template.
Exam	Special Examination Finding Blocks	Reflected changes to the report template.
Exam	Performance Audit Finding Blocks	Reflected changes to the report template.
Exam	DELETED—Instructions for completing the Performance Audit Report	No longer required due to the updates to the report template.
Exam	DELETED—Instructions for completing the Special Examination Report	No longer required due to the updates to the report template.
Exam	Independent Review Report	Reviewed the template to improve the format and to embed instructions. Included optional text to report on work related to the United Nation’s sustainable development goals.
Exam	Special Examination Report	Reviewed the template to improve the format and to embed instructions.
Exam	Study Report	Reviewed the template to improve the format and to embed instructions. Included optional text to report on work related to the United Nation’s sustainable development goals.
Exam	Performance Audit Report	Reviewed the template to improve the format and to embed instructions. Included optional text to report on work related to the United Nation’s sustainable development goals.