Please note that the following document is not in effect until April 1, 2006. The
current Internal Audit Policy remains in effect until
March 31, 2006.
1.1 This document provides direction to deputy heads in relation to chief
audit executives, departmental internal audit plans and support to the
Comptroller General.
2.1 This directive is issued pursuant to sections 7 and
11 of the Financial
Administration Act (FAA) in support of the Policy on Internal
Audit.
Paragraph 4.1.3 below applies to deputy heads in the core public administration
as defined in subsection 11. (1) of the FAA. Deputy heads of other departments
or separate agencies not subject to this directive are encouraged to meet these
requirements as good practice.
3.1 This directive takes effect on April 1, 2006. (See Policy 1.1 and 1.2)
4.1 Chief Audit Executive
4.1.1 The Policy requires deputy heads of departments, other than small
departments and agencies (SDAs), to appoint a chief audit executive.
4.1.2 Deputy heads shall ensure that the chief audit executive:
- Is independent from departmental management and operations allowing
objective assurance services on all areas of departmental responsibility;
- Has unfettered access to the departmental audit committee and to the
committee chair and vice-chair;
- Has access to all departmental records, databases,workplaces and
employees, and has the right to obtain information and explanations from
departmental employees and contractors, subject to applicable legislation;
- Has unimpaired ability to carry out his or her responsibilities, including
reporting findings to the deputy head, to the departmental audit committee
and, as appropriate, to the Comptroller General; and
- Provides an annual holistic opinion to the deputy head and audit committee
on the effectiveness and adequacy of departmental risk management, control,
and governance processes.
4.1.3 Deputy heads shall consult with:
- The Comptroller General when preparing the annual performance appraisal of
the chief audit executive; and
- The Comptroller General, and the Employer Representation Group, Labour
Relations and Compensation Operations Sector of the Treasury Board
Secretariat (in accordance with the Treasury Board Guidelines for
Discipline), prior to any action being taken to discipline or terminate the
employment of the chief audit executive.
4.1.4 Deputy heads should be guided by the Guidelines on the
Responsibilities of Chief Audit Executives in establishing the roles and
responsibilities of chief audit executives and by the Guidelines on Expected
Qualifications of Chief Audit Executives.
4.2 Departmental Internal Audit Plans
The Policy requires that deputy heads of departments approve the department's
internal audit plan. Deputy heads should ensure that the internal audit plan:
- Is reviewed by the audit committee;
- Is focused primarily on the provision of assurance services and that other
services are provided on an exception basis only;
- Includes internal audits identified by the Comptroller General as part of
government-wide coverage, including:
- Annual audits that address fundamental controls including financial
statement reporting controls; and
- Selected government-wide sectoral, thematic or horizontal audits.
- Supports an annual opinion from the chief audit executive on departmental
risk management, control, and governance processes.
4.3 Support for the Comptroller General
Deputy heads must ensure that the Comptroller General is provided:
- Copies of internal audit plans as approved by the deputy head;
- Copies of any management letters resulting from the audits of the Office
of the Auditor General;
- Electronic copies of reports on all completed internal audits before they
are posted on the departmental web site;
- Access to internal auditing staff and their working papers; and
- The annual report of the departmental audit committee including the
committee's assessment of the departmental internal audit function.
Please send any questions about this directive to:
Office of the Assistant Comptroller General, Internal Audit
Treasury Board of Canada Secretariat
L'Esplanade Laurier
300 Laurier Avenue West
Ottawa, Ontario
K1A 0R5
Email: ias-svi@tbs-sct.gc.ca
Fax: (613) 952-3698
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