What to Expect—An Auditee's Guide to the Performance Audit Process

11—After the performance audit

To understand our past performance and to identify possible areas for improvement, the Office of the Auditor General (OAG) believes that it is important to obtain feedback from entities that are the subject of its audits. Therefore, it conducts post-audit surveys about various aspects of the audit experience after tabling of reports of the Auditor General or the Commissioner of the Environment and Sustainable Development (CESD) in the House of Commons. A summary of the results of these surveys is reported to Parliament in the OAG's performance report.

It is important for due diligence, accountability, and value for money that both the Auditor General or CESD and the deputy head of an audited entity know the extent to which the entity has implemented previous audit recommendations or addressed significant observations that contain an implied recommendation or a commitment to action by the audited entity.

Toward the end of each fiscal year, the OAG contacts audited entities, as necessary, to request an update on progress made to implement current and outstanding audit recommendations or to address significant observations. This update covers a maximum period of five years from the release of the audit reports, or until the issue is resolved or obsolete.

The entities are expected to formally respond, within the specified time frame (usually up to four months), to this request with progress reports. The progress reports are to include

  • a concise description of the actions undertaken up to the fiscal year end toward the implementation of each outstanding recommendation;
  • an assessment of the level of implementation achieved as of that fiscal year end—based on a scale of 1 to 5; and
  • a statement by the Chief Audit Executive for the entity (or a senior executive position, reporting to the deputy head, who acts in such a role) whether the information included in the progress reports has been reviewed by its departmental audit committee.

The OAG publishes aggregate statistics in its annual performance report to Parliament on the percentage of recommendations fully and substantially implemented four years after release of the audit reports.

The OAG also conducts status audits of specific audit recommendations and issues of concern raised in past audit chapters that continue to pose a significant risk and remain of continuing interest to Parliament. The Office completes these audits in the same manner as other performance audits, following professional audit standards. It normally reports these audit results in its annual status report.

Related information sheets:

Steps in monitoring recommendations and follow-up

OAG

Audited Entity

After a report is tabled in the House of Commons

The OAG sends a post-audit survey to the entity's deputy head to obtain feedback on its audit performance.

The deputy head is expected to respond to the survey in a timely manner.

On an annual basis

The OAG sends the entity's deputy head or Chief Audit Executive a request for a report on the status of actions taken to implement previous recommendations and, where appropriate, significant observations.

The deputy head or Chief Audit Executive is expected to distribute the request to those who will provide input for the response.

The Chief Audit Executive (or other designated senior official) is expected to coordinate the response to the request, including a statement on whether the information included in the progress reports has been reviewed by the departmental audit committee, and return it to the OAG, within the specified time frame (usually four months).