Audit Methodology Update—February 2023
Feb-2023
Target audience: All Direct Engagement Auditors.
Effective date: The revised methodology is effective upon release with the exceptions below related to Canadian Standard on Quality Management (CSQM 1 & CSQM 2).
Updates related to CSQM 1 & 2 in the table below are effective for Direct Engagements beginning on or after December 15, 2022.
Description of subject: The update reflects changes to TeamMate procedures summarized below.
Key changes are:
The key changes to TeamMate procedures reflect the Direct Engagement Methodology update published in December 2022. For more information, refer to the link below:
http://cmsprd.oag-bvg.gc.ca/intranet/performance-audits/27363_ENC_HTML_PROD.shtm
Updates to TeamMate Audit Procedures
Revisions have been made to the TeamMate TeamStores for Performance Audit and Special Examinations. In addition, audit procedures related to the Engagement Quality Reviewer (EQR) responsibilities and minimum documentation requirements were revised to comply with Canadian Standard on Quality Management (CSQM) 2.
There were two key structural changes made to both the performance audit and the special examination TeamMate procedures.
- One procedure step was added to B.2.PRG–Engagement Quality Reviewer, and one procedure was deleted from E.3.PRG–Report Content approval as indicated in the table below.
Audit teams with audit work currently under way should continue using their current TeamMate file and take the required actions indicated in 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 (some exceptions apply).
- 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 Audits or Special Examinations that incorporates the changes.
The following is a summary of the revisions to the TeamMate procedures, other than editorial or minor revisions, and any actions that need to be taken:
Performance Audit TeamStore
|
Program (PRG) |
Procedure Step |
Change |
Action Required / Impact |
|
A.1.PRG—Project Management |
CPA Canada Licence Agreement (Dec-2022) |
Changed copyright date from 2021 to 2022. |
Action required Ensure you have the most updated procedure step if not yet started. |
|
A.2.PRG-Team Members and Experts |
Team Meetings (Dec-2022) |
Clarified that the assigned legal counsel is a team member. |
|
|
A.3.PRG-Entity Communication |
Letter of Notification and Solicitor-Client Privilege (Dec-2022) |
Removed the need for the PX responsible for the entity (if different from the Engagement Leader for the audit) to sign the Letter of Notification and Solicitor-Client Privilege. |
|
|
A.5.PRG-Engagement Risk Assessment |
Engagement Risk (and Team Competency) Assessment (Dec-2022) |
To comply with CSQM 1 requirements Added requirement for the engagement leader to ensure the engagement resources have sufficient time to perform the engagement. Updated text to align with CSQM 2. |
Action required For new engagements beginning on or after December, 15 2022, ensure you have the most updated procedure step. |
|
A.6.PRG-Early Planning Phase Meeting |
Early AG Engagement Meeting (Dec-2022) |
Added link to the revised Disposition of Advice template. |
Action required Ensure you have the most updated procedure step if not yet started. |
|
B.2.PRG–Engagement Quality Reviewer |
IF APPLICABLE—Engagement Quality Reviewer–Planning sign-off (Dec-2022) |
To comply with CSQM 2 requirements Added link to the new Engagement Quality Reviewer Checklist and Sign-off (CSQM 2). Revised procedure to align with the requirements from CSQM 2 and the new Engagement Quality Reviewer Checklist and Sign-off (CSQM 2). Applicable to other engagements beginning on or after December 15, 2022. |
Action required For new engagements beginning on or after December, 15 2022, ensure you have the most updated procedure step, if applicable. |
|
B.2.PRG–Engagement Quality Reviewer |
NEW—IF APPLICABLE—Engagement Quality Reviewer–Completion sign-off (Dec-2022) |
To comply with CSQM 2 requirements Added a new procedure to align with the requirements from CSQM 2 and the new Engagement Quality Reviewer Checklist and Sign-off (CSQM 2). Applicable to other engagements beginning on or after December 15, 2022 |
Action required For new engagements beginning on or after December, 15 2022, ensure you have added this new procedure step, if applicable. |
|
C.2.PRG-Audit Scope and Approach |
Audit Logic Matrix (Dec-2022) |
Added link to the Consultation template published in December 2022. Clarified that when the ALM is being drafted any difficult or contentious matters or other matters requiring specialized knowledge or experience should be discussed with the assigned legal counsel. |
Action required Ensure you have the most updated procedure step if not yet started. |
|
C.2.PRG-Audit Scope and Approach |
IF APPLICABLE—Planning Phase Advisory Committee Meeting (Dec-2022) |
Added link to the Consultation template published in December 2022. |
|
|
C.2.PRG-Audit Scope and Approach |
Planning Phase AG Briefing (Dec-2022) |
Added link to the revised Disposition of advice template. |
|
|
C.3.PRG-Audit Plan Summary |
Prepare Audit Plan Summary (Dec-2022) |
Added the sign-off of the assigned legal counsel on the APS. |
|
|
C.4.PRG-Audit Programs |
Audit Programs (Dec-2022) |
Added link to the Consultation template published in December 2022. |
|
|
C.5.PRG-Examination Approval |
Engagement Leader—Examination Approval (Dec-2022) |
To comply with CSQM 1 requirements Added requirement that the engagement leader should ensure the engagement resources have sufficient time to perform the engagement. |
Action required For new engagements beginning on or after December, 15 2022, ensure you have the most updated procedure step. |
|
D.2.PRG-Internal Draft and Consultation |
Findings Discussion with the AG (Dec-2022) |
Added link to the revised Disposition of advice template. |
Action required Ensure you have the most updated procedure step if not yet started. |
|
D.2.PRG-Internal Draft and Consultation |
Prepare Internal Draft and Consult Internally (Dec-2022) |
Added link to the Consultation template published in December 2022. Removed the sign-off of the procedure by the engagement quality reviewer. |
|
|
D.2.PRG-Internal Draft and Consultation |
IF APPLICABLE—Examination Phase Advisory Committee Meeting (Dec-2022) |
Added link to the Consultation template published in December 2022. |
|
|
E.1.PRG - PX Draft |
Prepare PX Draft (Dec-2022) |
Added link to the Consultation template published in December 2022. Clarified that the assigned legal counsel should review the PX Draft. |
|
|
E.1.PRG - PX Draft |
PX Draft to Entity (Dec-2022) |
Clarified that the copy of the PX Draft sent to Entity should also be sent to the assigned legal counsel. |
|
|
E.1.PRG - PX Draft |
IF APPLICABLE—PX Draft Excerpts to Third Parties (Dec-2022) |
Clarified that the team should consult the assigned legal counsel regarding legal concerns or difficulties with third parties. |
|
|
E.1.PRG - PX Draft |
Revised PX Draft as Result of Comments Received (Dec-2022) |
Added link to the Consultation template published in December 2022. Clarified that, if changes were made to the PX draft regarding legal matters, the revised PX draft needs to be sent to the assigned legal counsel. |
|
|
E.3.PRG–Report Content approval |
DELETE—IF APPLICABLE— Engagement Quality Reviewer Content Approval |
To comply with CSQM 2 requirements Applicable to other engagements beginning on or after December 15, 2022. This procedure should be deleted for teams that need to comply with CSQM 2 and have added the new step B.2.PRG—Engagement Quality Reviewer–Completion sign-off (Dec-2022). |
Action required For new engagements beginning on or after December 15, 2022, ensure you delete this procedure step. |
|
E.3.PRG-Report Content Approval |
Engagement Leader—Report Content (Dec-2022) |
Updated text to align with OAG Audit 8017. |
Action required Ensure you have the most updated procedure step if not yet started. |
|
E.4.PRG-Transmission Draft |
Transmission Draft Discussion with the AG (Dec-2022) |
Added link to the revised Disposition of advice template. Removed reference to the At a Glance document. |
|
|
E.4.PRG-Transmission Draft |
Revised Transmission Draft as a Result of Comments Received (Dec-2022) |
Added a step to discuss with assigned legal counsel and the engagement quality reviewer (if applicable) changes made to the report. |
|
|
E.5.PRG-Report Publication Approval |
General Counsel—Approval for Publication (Dec-2022) |
Replaced Legal Services by General Counsel. |
|
|
E.5.PRG-Report Publication Approval |
Engagement Leader—Approval for Publication (Dec-2022) |
Replaced Legal Services by General Counsel. |
Special Examination TeamStore
|
Program (PRG) |
Procedure Step |
Change |
Action Required / Impact |
|
A.1.PRG—Project Management |
CPA Canada Licence Agreement (Dec-2022) |
Changed copyright date from 2021 to 2022. |
Action required Ensure you have the most updated procedure step if not yet started. |
|
A.2.PRG-Team Members and Experts |
Team Meetings (Dec-2022) |
Clarified that the assigned legal counsel is a team member. |
|
|
A.3.PRG-Entity Communication |
Engagement and Solicitor-Client Privilege Letter (Dec-2022) |
Removed the need for the PX responsible for the entity (if different from the Engagement Leader for the audit) to sign the Engagement and Solicitor-Client Privilege Letter. |
|
|
A.5.PRG-Engagement Risk Assessment |
Engagement Risk (and Team Competency) Assessment (Dec-2022) |
To comply with CSQM 1 requirements Added requirement for the engagement leader to ensure the engagement resources have sufficient time to perform the engagement. Updated text to align with CSQM 2. |
Action required For new engagements beginning on or after December, 15 2022, ensure you have the most updated procedure step. |
|
B.2.PRG–Engagement Quality Reviewer |
IF APPLICABLE—Engagement Quality Reviewer–Planning sign-off (Dec-2022) |
To comply with CSQM 2 requirements Added link to the new Engagement Quality Reviewer Checklist and Sign-off (CSQM 2). Revised procedure to align with the requirements from CSQM 2 and the new Engagement Quality Reviewer Checklist and Sign-off (CSQM 2). Applicable to other engagements beginning on or after December 15, 2022. |
Action required For new engagements beginning on or after December, 15 2022, ensure you have the most updated procedure step, if applicable. |
|
B.2.PRG–Engagement Quality Reviewer |
NEW—IF APPLICABLE—Engagement Quality Reviewer–Completion sign-off (Dec-2022) |
To comply with CSQM 2 requirements Added a new procedure to align with the requirements from CSQM 2 and the new Engagement Quality Reviewer Checklist and Sign-off (CSQM 2). Applicable to other engagements beginning on or after December 15, 2022. |
Action required For new engagements beginning on or after December, 15 2022, ensure you have added this new procedure step, if applicable. |
|
C.2.PRG-Audit Scope and Approach |
Audit Logic Matrix (Dec-2022) |
Added link to the Consultation template published in December 2022. Clarified that when the ALM is being drafted any difficult or contentious matters or other matters requiring specialized knowledge or experience should be discussed with the assigned legal counsel. |
Action required Ensure you have the most updated procedure step if not yet started. |
|
C.2.PRG-Audit Scope and Approach |
IF APPLICABLE—Planning Phase Advisory Committee Meeting (Dec-2022) |
Added link to the Consultation template published in December 2022. |
|
|
C.2.PRG-Audit Scope and Approach |
IF APPLICABLE—Planning Phase AG Briefing (Dec-2022) |
Added link to the revised Disposition of advice template. |
|
|
C.3.PRG-Special Examination Plan |
Special Examination Plan to Management (Dec-2022) |
Removed the review and sign off of the draft special examination plan by the engagement quality reviewer. |
|
|
C.3.PRG-Special Examination Plan |
Final SE Plan (Dec-2022) |
Added the review of the final special examination plan by the assigned legal counsel and the engagement quality reviewer. Removed the engagement quality reviewer sign off of the final special examination plan. |
|
|
C.4.PRG-Audit Programs |
Audit Programs (Dec-2022) |
Added link to the Consultation template published in December 2022. |
|
|
C.5.PRG-Examination Approval |
Engagement Leader—Examination Approval (Dec-2022) |
To comply with CSQM 1 requirements Added requirement that the engagement leader should ensure the engagement resources have sufficient time to perform the engagement. |
Action required For new engagements beginning on or after December, 15 2022, ensure you have the most updated procedure step. If not completed before Dec 15, 2022, ensure you have the most updated procedure step. |
|
D.2.PRG-Internal Draft and Consultation |
Findings Discussion with the AG (Dec-2022) |
Added link to the revised Disposition of advice template. |
Action required Ensure you have the most updated procedure step if not yet started. |
|
D.2.PRG-Internal Draft and Consultation |
Prepare Internal Draft and Consult Internally (Dec-2022) |
Added link to the Consultation template published in December 2022. Removed the sign-off of the procedure by the engagement quality reviewer |
|
|
D.2.PRG-Internal Draft and Consultation |
IF APPLICABLE—Examination Phase Advisory Committee Meeting (Dec-2022) |
Added link to the Consultation template published in December 2022. |
|
|
E.1.PRG - PX Draft |
Prepare PX Draft (Dec-2022) |
Added link to the Consultation template published in December 2022. Clarified that the assigned legal counsel to review the PX Draft. |
|
|
E.1.PRG - PX Draft |
PX Draft to Entity (Dec-2022) |
Clarified that the copy of the PX Draft to Entity should also be sent to the assigned legal counsel. |
|
|
E.1.PRG - PX Draft |
IF APPLICABLE—PX Draft Excerpts to Third Parties (Dec-2022) |
Clarified that the team should consult the assigned legal counsel regarding legal concerns or difficulties with third parties. |
|
|
E.1.PRG - PX Draft |
Revised PX Draft as Result of Comments Received (Dec-2022) |
Added link to the Consultation template published in December 2022. Clarified to the procedure to send the PX draft to the assigned legal counsel. |
|
|
E.3.PRG–Report Content approval |
DELETE—IF APPLICABLE— Engagement Quality Reviewer Content Approval (Nov-2016) |
To comply with CSQM 2 requirements Applicable to other engagements beginning on or after December 15, 2022. This procedure should be deleted for teams that need to comply with CSQM 2 and have added the new step B.2.PRG–Engagement Quality Reviewer–Completion sign-off (Dec-2022). |
Action required For new engagements beginning on or after December 15, 2022, ensure you delete this procedure step. |
|
E.3.PRG-Report Content Approval |
Engagement Leader—Report Content Approval (Dec-2022) |
Updated text to align with OAG Audit 8017. |
Action required Ensure you have the most updated procedure step if not yet started. |
|
E.4.PRG-Transmission Draft |
Audit Committee Transmission Draft Discussion with AG (Dec-2022) |
Added link to the revised Disposition of advice template. Removed reference to the At a Glance document. |
|
|
E.4.PRG-Transmission Draft |
Revised Audit Committee Transmission Draft as a Result of Comments Received (Dec-2022) |
Added a step to discuss with assigned legal counsel and the engagement quality reviewer (if applicable) changes made to the report. |
|
|
E.5.PRG-Report Publication Approval |
General Counsel—Approval for Submission to Board (Dec-2022) |
Replaced Legal Services by General Counsel |
|
|
E.5.PRG-Report Publication Approval |
Engagement Leader—Approval for Submission to Board (Dec-2022) |
Replaced Legal Services by General Counsel |