Audit Strategy and Approach

Planning

The audit planning work started January 2008 and audit examination ended in April 2008. Sources of reference reviewed included: TBS Policy on Transfer Payments, Government of Canada Post-Secondary and Youth job programs, WD Corporate Risk Profile, previous WD audit reports of relevance in assessing risk. Other background materials about ITPP were reviewed in order to acquire deeper knowledge of the program and to identify risks. Materials from sample contribution agreements, the Treasury Board Secretariat, the Office of the Auditor General reports, and the Institute of Internal Auditors were utilized in selecting audit criteria and developing the audit program. Based on knowledge gained of the program and its challenges, Internal Audit examined the selected management controls and assessed the identified risk.

Standards and Methodology

Government of Canada internal auditing standards were used in conducting and reporting on the audit. Emphasis was placed on factual evidence, analyzing evidence, and associated documentation. The audit objectively analyzed conditions with objectivity and against risk exposure, significance, cause and probable effect. Recommendations were selected based on risk exposure, significance, and actionable added-value points that will contribute to management excellence.

The option of interviewing recipient staff and/or former graduate employees where necessary was left open to be assessed after analyzing internal WD documentation files, resources, risk and current management control frameworks.

Consideration was given to the results of the follow-up of previous related audits and the extent that management action plans have been implemented to date. Some of the recommendations arising from previous audits from 2005 and 2007, and a formative evaluation of the program done in 2004, apply to the issues observed in this audit.

Through a follow-up of previous audits, Internal Audit was able to conclude that since 2005 management controls have improved significantly in terms of project review assessment processes and monitoring and payment processes.

Sampling

Judgemental random sampling, based on stratified dollar amount ranges within the population, was used to select project files for testing. Table 2 summarizes the population of the program between 2002 and 2007 and details of the sample projects selected for testing:

Description	Total	Percentage
Program claims for 2002 - 2005 audit period projects	$2,833,489	100%
Dollar value of sample projects examined	$647,291	23%
Number of active projects in audit period	176	100%
Number of sample projects examined	41	41

Audit team

Donald MacDonald	Chief Audit Executive
John Hagan	Project Leader
Kathy Locke	Senior Audit Officer
Amarjit Mundi	Senior Audit Officer
Stella Okyere	Executive Assistant