Report on a Review of the Financial Audits Completed in the 2018–19 Fiscal Year
Report on a Review of the Financial Audits Completed in the 2018–19 Fiscal Year
Table of Contents
Introduction
The Practice Review and Internal Audit team helps the Office of the Auditor General of Canada (OAG) to meet its obligation under the Chartered Professional Accountants of Canada’s Canadian Standard on Quality Control 1. The team does this by conducting inspection activities to determine the extent to which engagement leaders are complying with Canadian Auditing Standards, OAG policies, and applicable laws and regulations when conducting their audits. The team also ensures that independent auditor’s reports are supported and appropriate.
Objective
The practice review’s objective is to provide the Auditor General of Canada with assurance that
- financial audits comply with Canadian Auditing Standards, OAG policies, and applicable laws and regulations
- independent auditor’s reports are supported and appropriate
Scope
This report summarizes the reportable observations related to the practice reviews of 5 financial audits and a limited practice review of 1 financial audit focusing on quality reviewer involvement. These financial audits were completed in the 2018–19 fiscal year.
Rating
Each audit file reviewed is rated as one of the following:
- Compliant. Performance is satisfactory with minor improvements possible. The audit file is compliant in all significant respects with Canadian Auditing Standards, OAG policies, and applicable laws and regulations.
- Compliant while improvements needed. Improvements are necessary in 1 or more areas to comply, in all significant respects, with Canadian Auditing Standards, OAG policies, and applicable laws and regulations.
- Non-compliant. Significant deficiencies exist; the audit file does not comply with Canadian Auditing Standards, OAG policies, or applicable laws and regulations.
After completing each review, we also conclude on whether the independent audit opinion is supported and appropriate.
Results of the Reviews
Exhibit 1 summarizes the reportable observations related to the practice reviews.
Exhibit 1—Summary of reportable observations
|
A. Engagement management |
None. |
|---|---|
|
B. Planning phase |
None. |
|
C. Examination phase |
None. |
|
D. Reporting phase |
In 1 audit file, the procedure pertaining to subsequent events after the date of the independent auditor’s report was signed off in TeamMate before the report’s date. |
|
E. Engagement quality review |
None. |
|
F. Efficiencies |
In 1 audit file, the sampling strategy for a number of accounts could be reviewed to determine whether an audit approach based on statistical sampling would be more efficient than an audit approach based on targeted testing. |
|
G. Other practice improvements |
None. |
|
H. Summary of good practice observed |
None. |
Recommendations
None.
Conclusion
All 5 of the financial audit files reviewed were rated as compliant in all significant respects with Canadian Auditing Standards, OAG policies, and applicable laws and regulations.
All related independent auditor’s reports were supported and appropriate.
For the limited practice review for 1 audit focusing on quality reviewer involvement, the Practice Review and Internal Audit team concluded that for the Engagement Quality Control Review element of the System of Quality Control, the file was compliant.