Audit Strategy and Approach

Planning

The audit planning work started in April 2008 and audit examination ended in July 2008. Sources of information reviewed included: Treasury Board Secretariat (TBS) Management Control Framework, recent similar audits conducted by other departments, TBS Financial Management Policies, WD Financial Management intranet site, WD Corporate Risk Profile, and previous WD audit reports. Internal Audit also reviewed financial management practices in the regions. Internal Audit used materials from the Treasury Board Secretariat, the Office of the Auditor General, and the Institute of Internal Auditors to develop audit criteria and audit program. Based on knowledge gained of the departmental management of financial activities and its challenges, Internal Audit examined the selected management controls and assessed the identified risk.

Standards and Methodology

Internal Audit used Government of Canada internal auditing standards in planning, conducting and reporting on the audit. Emphasis was placed on factual evidence, analyzing evidence, and associated documentation. Internal Audit objectively analyzed conditions with objectivity and against risk exposure, significance, cause and probable effect. Internal Audit selected recommendations based on risk exposure, significance, and actionable items that will contribute to management efficiency and effectiveness.

Internal Audit interviewed staff from operational and financial activities to validate the use of internal control frameworks at WD including maintenance of file documentation, training, monitoring and risk management practices.

Internal Audit gave consideration to the recently conducted audits along with the results of the follow-up of previous related audits and the extent that management action plans have been implemented to date.

Through a follow-up of the previous audits, Internal Audit was able to determine that since 2005 financial management controls and practices have significantly improved.

The audit was carried out in three phases: planning, conducting and reporting phases.

Internal Audit used judgemental random sampling, based on dollar amounts and across different programs, to select financial files and transactions for testing.

Audit team

Donald MacDonald - Chief Audit Executive
Amarjit Mundi - Senior Audit Officer
Barry Neil - Internal Auditor