Western Economic Diversification Canada
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Introduction

Treasury Board Accounting Standards and related policies and directives assign certain responsibility requirements internally to the Deputy Minister, the Chief Financial Officer and the Departmental Audit Committee. Effective April 2011, the Deputy Minister and Chief Financial Officer are required to attest to the integrity and objectivity of periodic financial reporting that includes a complete set of annual financial statements and a quarterly financial report for each of the first three quarters of each fiscal year.

The department falls within the category of departments that do not need to have their annual financial statements audited by an external auditor. However, the Deputy Minister has to ensure that measures are taken so that the department can sustain a control-based audit of its annual financial statements in whole and in part.

Audit Objective

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.

Key Risks

This audit focused on testing the financial reporting controls that management has developed to mitigate the following key risks:

  • That the contents and disclosures are insufficient or not meeting Treasury Board standards;
     
  • That unaddressed financial reporting control weaknesses exist;
     
  • That financial statements and associated management information is inaccurate or misleading; and
     
  • That required financial reports are not published in a timely manner.

Audit Scope

This audit followed-up and built upon the financial statement readiness assessment consulting work done by a consultant for the Chief Financial Officer. We performed additional work to obtain assurance on the maintenance of effective controls for financial reporting during the period of January to December 2011.

In April 2011, the department implemented a framework for monitoring internal controls over financial reporting. This audit did not test the framework due to its early stages of implementation.

Acknowledgements

We thank management and staff involved with financial reporting for their timely cooperation and assistance provided to the audit team throughout the engagement.