Western Economic Diversification Canada
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Executive Summary

The Audit of Financial Reporting Controls was identified in the department’s approved 2011-12 Risk Based Audit Plan. This audit is a follow up to management’s financial readiness assessment completed by an external consultant. The purpose of the audit was to provide assurance that the department has designed and maintained a system of internal control over financial reporting that is adequate and effective.

Findings

Management has designed and maintained effective key controls to ensure integrity and objectivity in periodic financial reporting in accordance with Treasury Board directives. The controls have operated effectively to ensure the periodic financial reports produced satisfy the format and contents required by Treasury Board. Management has exercised its responsibility appropriately to provide adequate and reliable financial information in all material respects in accordance with Treasury Board Accounting Standards.

Opportunities for improvement identified pose low risk and the audit recommends that the department develop concise capital asset procedures to provide greater clarity on required conditions of assets capitalization.

No material issues were identified in this audit that would impair the integrity and objectivity in the financial reports produced in the audit period.

Statement of Assurance

In my professional judgment as Chief Audit Executive, sufficient and appropriate audit procedures have been conducted and evidence gathered to support the accuracy of the conclusion provided and contained in this report on the effectiveness of controls for financial reporting.

The assurance is based on a comparison of the conditions, as they existed at the time, against pre-established audit criteria that were agreed upon with management. The assurance is applicable to the policies and processes examined. The evidence was gathered in compliance with Treasury Board policy, directives, and standards on internal audit for the Government of Canada. The evidence has been gathered to be sufficient to provide senior management with the proof of the conclusions derived from the audit.