Western Economic Diversification Canada
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Audit Strategies and Approach

Planning

Audit planning started in October 2011 and fieldwork was completed in January 2012.  Departmental employees were engaged as necessary throughout the audit process to facilitate identification of key risks, audit criteria, control elements and audit strategies.  The audit also looked to identify opportunities to assist the department’s implementation of the Treasury Board Accounting Standards 1.2 and 1.3 and related directives.

Standards and Methodology

Government of Canada internal auditing standards were used for the audit.  It was evidence-based and provides audit assurance that is fully supported. The audit examined evidence against criteria that were established based on the Treasury Board Accounting Standards 1.2 and 1.3 and other federal government sources including: departmental performance report, Receiver General Manual, management discussions, Financial Administration Act, and Audit Criteria related to the Management Accountability Framework: A Tool for Internal Auditors. The basis for the audit examination and expectations was communicated and agreed to by management in the terms of reference. The sources of evidence gathered and used included: risk analysis, interviews, regional visits, verification, confirmations as necessary, audit analysis, analytical reviews, and cause and effect assessment.

Sampling

Based on the 275 controls documented during the financial statement audit readiness assessment project, internal audit judgementally selected 50 key controls relating to financial reporting and tested them for effectiveness. Internal Audit examined 8 completed recommendations from the financial statement readiness assessment project that have direct and significant impact on financial reporting. Internal Audit then performed additional tests necessary to satisfy that requirements of Treasury Board Accounting Standards 1.2 and 1.3 for the annual financial statements and quarterly financial reporting for March 2011, June 2011 and September 2011 were met.

Audit Team

Donald MacDonald, Chief Audit Executive

John Hagan, Project Leader

Christine Kasianiuk, Internal Auditor