es of enquiry are determined to

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Lines of enquiry are determined to help the audit team finalize its audit approach as documented in the audit logic matrix. Audit issues from the original audit may also be dropped for the follow-up work, if they are no longer of interest, no longer pose a significant risk, or become irrelevant or obsolete. The Financial Administration Act requires the audit team to consider relying on work performed by the Crown corporations internal audit function, as far as it is practicable to do so. Identification of intended users and their information needs, and consideration of significance and the components of engagement risk.

The extent to which the risk of fraud is relevant to the engagement. fb |8 endstream endobj 33 0 obj 99 endobj 14 0 obj << /Type /Page /Parent 9 0 R /Resources 15 0 R /Contents 21 0 R /MediaBox [ 0 0 595 842 ] /CropBox [ 0 0 595 842 ] /Rotate 0 >> endobj 15 0 obj << /ProcSet [ /PDF /Text ] /Font << /F1 23 0 R /TT2 17 0 R /TT4 16 0 R /TT6 26 0 R >> /ExtGState << /GS1 28 0 R >> /ColorSpace << /Cs6 20 0 R >> >> endobj 16 0 obj << /Type /Font /Subtype /TrueType /FirstChar 32 /LastChar 148 /Widths [ 278 0 0 0 0 0 0 0 333 333 0 0 278 333 278 278 556 556 556 556 556 556 556 556 0 556 278 278 0 0 0 0 0 667 667 722 722 667 611 778 722 278 500 0 556 833 722 778 667 0 722 667 611 0 667 944 0 0 0 0 0 0 0 0 0 556 556 500 556 556 278 556 556 222 222 500 222 833 556 556 556 556 333 500 278 556 500 722 500 500 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 222 333 333 ] /Encoding /WinAnsiEncoding /BaseFont /MLNIFD+Arial /FontDescriptor 19 0 R >> endobj 17 0 obj << /Type /Font /Subtype /TrueType /FirstChar 32 /LastChar 150 /Widths [ 278 0 0 0 0 0 0 0 0 0 0 0 0 333 278 0 556 556 556 556 556 556 0 0 556 0 0 0 0 0 0 0 0 722 722 722 722 667 611 778 0 278 556 722 611 833 722 778 667 778 722 667 611 722 667 0 667 667 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 556 ] /Encoding /WinAnsiEncoding /BaseFont /MLNIFB+Arial,Bold /FontDescriptor 18 0 R >> endobj 18 0 obj << /Type /FontDescriptor /Ascent 905 /CapHeight 718 /Descent -211 /Flags 32 /FontBBox [ -628 -376 2000 1010 ] /FontName /MLNIFB+Arial,Bold /ItalicAngle 0 /StemV 144 /FontFile2 27 0 R >> endobj 19 0 obj << /Type /FontDescriptor /Ascent 905 /CapHeight 718 /Descent -211 /Flags 32 /FontBBox [ -665 -325 2000 1006 ] /FontName /MLNIFD+Arial /ItalicAngle 0 /StemV 94 /XHeight 515 /FontFile2 31 0 R >> endobj 20 0 obj [ /ICCBased 30 0 R ] endobj 21 0 obj << /Length 2448 /Filter /FlateDecode >> stream A99-A103, A105-A109). #U Planned value added in Performance audits.

In consequence, the period covered by the audit for a special examination is typically from the beginning of the planning phase until the end of the examination phase (end of field work). The audit team may decide to have a shorter audit period, such as one-year.

The use of templates and tools discussed in OAG Audit4020 Risk assessment and OAG Audit4025 Internal controls facilitate the teams documentation. A99. The audit team needs to consider the following elements when making decisions about scope and approach: With the exception of suitability of criteria that is discussed under OAG Audit4043 Audit criteria, each of these considerations are covered in the following sections. Section 131(2) The books, records, systems and practices referred to in subsection (1) shall be kept and maintained in such manner as will provide reasonable assurance that. The audit team shall select issues on the basis of their significance, their planned value added, and their auditability. It cannot be distributed to or reproduced by third parties without prior written permission from the Copyright Coordinator for the Office of the Auditor General of Canada.

arthur lauren missouri state senator clay county calls Core recognizes the complex relationships both among control objectives and the systems and practices of the corporation. The audit approach corresponds to the nature, extent, and timing of the work being undertaken in order for the audit team to provide reasonable assurance to the intended user of the report on the audit conclusion, against the audit objective. [Nov2015], In performance audits, the audit team shall follow up on issues that led to recommendations in a previous audit report if those issues continue to be of interest to Parliament and/or pose a significant risk.

OAG Audit 2020 Significance OAG Audit 2070 Use of experts The team should also include a rationale for the period(s) chosen. Are there issues with high visibility or of current concern? In order to identify this minimum set of systems and practices to be examined, the following assessments were performed: In order to answer the question, What is required for the Crown corporation to cause financial and management control and information systems and practices to be maintained (FAA S. 131 1 (b))? an analysis and cross-walk was performed to compare the FAA requirements with both best management practices from recognized sources as well as with expectations for management systems and practices found in documents linked to the changes to the FAA in 1984.

Auditors should assess the relevant systems and practices identified in their lines of enquiry, as well as areas where they may rely on the internal audit function. This information is used to determine whether each line of enquiry is needed to support the overall planned value added of the audit. OAG Audit 4010 Understanding the subject matter in planning an audit Documentation is necessary to demonstrate that the team is meeting the CPA Canada assurance standards and to support the OAGs expectation of effective planning. Was this system and practice the subject of a recommendation or significant deficiency in the previous special examination report? The audit scope and approach, including lines of enquiry, should be included in the audit logic matrix (OAG Audit4044 Developing the audit strategy: audit logic matrix), which also includes the objectives, criteria and their sources, audit questions, data sources, and other information. Although some areas may be significant, they may not be auditable forone or more of the following reasons: The audit team should refer to its assessment of engagement risk when considering auditability (OAG Audit4020 Risk assessment). OAG Audit 4043 Audit criteria

(b) financial and management control and information systems and management practices to be maintained, in respect of itself and each of its wholly-owned subsidiaries, if any. Typically, scope includes the following threeelements: Scoping decisions include a rationale for including key elements as well as for elements explicitly not included. For further information, see Guidance to Integrate Value added into the Performance Audit Process and Guidance to Integrate Results Measures into Performance Audits, under the Audit Guidance section below. This work is iterative and is not necessarily undertaken in a linear fashion. Through consultations, the OAG concluded that the Act does not require the inclusion of all systems and practices within the scope of a special examination. Section 139(2) The report of an examiner under subsection (1) shall include. (Ref: Para.

What is meant by the Audit Objective, Scope and Criteria? The expected timing and the nature of the communications required. A2-A3, A85-A89), 49.

They tell it like it is. The conclusion of a special examination includes an opinion statement onwhether there were any significant deficiencies inthe Crown corporations systems and practices selected for examination. While scoping the audit and determining the audit approach to be followed, the team needs to determine the possibility of using the work of others and relying on it. The team should ensure that it clearly understands the corporations mandatewhy it was created and what its objectives areto assess whether its operations are being carried out effectively. Generally, areas with larger dollar amounts warrant more attention. ffVX7esxy=B] \@M]=pjnB'DdIA'1"]yMM. Are there areas that have undergone a significant degree of change? COPYRIGHT NOTICE This document is intended for internal use. The team reviews findings from the previous special examination to identify the systems and practices that represented a significant deficiency or warranted a recommendation for improvement. Note that this section of the FAA does not use the wording wholly-owned as found in the special examination mandate in subsection138(1). The audit conclusion relates to these systems and practices as being able to provide assurance to the corporation that it met its statutory control objectives during thisperiod. Examples of changes within an entity are new programs, increased staff turnover, and reorganization; examples of changes to an entitys environment are amendments to enabling legislation, federal hiring freezes, and budget cuts. OAG Audit 4100 Special examination plan In this case, Section144 of the Financial Administration Act (FAA) applies. The audit team should examine all parts of the audit period. OAG Audit 7040 Audit conclusion. OAG Audit 1143 Documenting significant matters and related significant professional judgments Considering the characteristics of the underlying subject matter; Considering the factors that, in the practitioners professional judgment, are important in directing the engagement teams efforts, including where special consideration may be necessary (for example, the need for specialized skills or the work of an expert); Establishing and evaluating the continued appropriateness of quantitative and qualitative factors that are significant; Developing expectations for use when performing analytical procedures; Evaluating evidence, including the reasonableness of the oral and written representations received by the practitioner. Each line of enquiry should clearly address the risks identified in the teams risk assessment (OAG Audit4020 Risk assessment). The audit scope includes a description of what elements are included in the audit. OAG Audit 4045 Evidence-gathering methods Wrestling with QHSE compliance. CSAE 3001 also requires that the audit team obtains an understanding of the subject matter in order to be able to identify and assess the risks of significant deviations and provide the basis for designing and performing audit procedures to respond to the assessed risks and obtain sufficient appropriate evidence to support the audit conclusion. Adequate planning also assists the practitioner to properly assign work to engagement team members, and facilitates the direction, supervision, and the review of their work. It is important that the collective weight of the evidence provides persuasive support for the findings in the report (OAG Audit 1051 Sufficient appropriate audit evidence). Obtaining an understanding of the underlying subject matter and other engagement circumstances provides the practitioner with a frame of reference for exercising professional judgment throughout the engagement, for example, when: A105. The results of engagement acceptance activities and, where applicable, whether knowledge gained on other engagements performed by the engagement partner for the appropriate party(ies) is relevant.

The OAG has developed a set of core systems and practices and related standard criteria thatshould be examined in every special examination.

A project or program may have a relatively small budget, but affect a large segment of the population or have a significant impact on the environment. CSAE 3001 requires that the audit team consider the concept of significance when planning and performing the assurance engagement, including when determining the audit approach (i.e.

[Nov2015], Audits shall have a clear scope that focuses on the extent, timing, and nature of the audit. Are there areas involving large dollar amounts? Section 131(1) Each parent Crown corporation shall cause. While each audit is unique, there are some general or common objectives applied to most audits. As a result of unexpected events, changes in conditions, or evidence obtained, the practitioner may need to revise the overall strategy and engagement plan, and thereby the resulting planned nature, timing and extent of procedures.

Once planning work begins, clearly defining the audit scope is important to determine the budget, human resources, and time required to conduct the examination work, and to determine what will be reported. OAG Audit 1510 Selection of performance audit topics To the public? Compliance, 28. The nature and extent of planning activities will vary with the engagement circumstances, for example the complexity of the underlying subject matter and criteria. This includes email, fax, mail and hand delivery, or use of any other method of distribution or reproduction. 3. ..

The engagement team members should ask themselves the following questions when applying professional judgment in deciding which systems and practices are essential to include within the scope of the audit: Is this system and practice of particular interest to the board of directors?

Taken together, these core systems and practices and standard criteria are deemed to be applicable in all cases, and in most cases sufficiently comprehensive to provide the basis for an audit opinion on whether the Corporation has reasonable assurance of achieving its statutory control objectives. This three-year span was selected as there were significant changes to service delivery approachesin June2019 and we expected to see evidence of the results of these changes.. The practitioner shall consider significance when: (Ref: Para. Broaden your QHSE knowledge with resources for all skill levels.Whether you need the latest advanced tactics, a refresher on the basics, or to start from scratch, this is your home for QHSE knowledge. determining the nature, timing, and extent of procedures). The team determines if any recommendations or issues from previous audits will be included in the scope. Examples of the main matters that may be considered include: A86. The rationale for dropping them is documented in the audit file. audit effort required during the examination phase.