Working with Parliament for Better Government

One of the most important roles of Parliament is to hold the federal government to account for its use of taxpayer dollars. To do this effectively, parliamentarians need objective and fact-based information about how well the government raises and spends public funds.

The Office of the Auditor General is an independent and reliable source of such information.

The Auditor General is an Officer of Parliament who reports to the House of Commons. Parliament has granted the Office specific powers and responsibilities, and these are spelled out in the Auditor General Act, the Financial Administration Act, and many other statutes. The Auditor General is also the auditor for the governments of Nunavut, the Yukon and the Northwest Territories; and she reports directly to their legislative assemblies.

Providing objective and reliable information

The Office of the Auditor General provides objective and reliable information by

• auditing federal government departments and agencies, most Crown corporations, and many other federal organizations;
• reporting publicly up to four times a year to the House of Commons on matters that the Auditor General believes should be brought to the attention of the House; and
• testifying before parliamentary committees on the Office’s audits.

With the creation of the position of Commissioner of the Environment and Sustainable Development in December 1995, the Auditor General’s responsibilities regarding environmental matters increased considerably.

The Commissioner, on behalf of the Auditor General, reports annually to the House of Commons on all matters related to the environment and sustainable development that she considers should be brought to its attention. In addition, the Commissioner is responsible for monitoring, auditing, and reporting publicly on the environmental petitions process and departmental sustainable development strategies.

Overview of our audits

• Financial auditing indicates whether the government is presenting its financial information fairly according to the government’s accounting policies, thereby providing assurance on the credibility of its financial statements. Every year, we audit the federal government’s summary financial statements (which are included in the Public Accounts of Canada) and those of the three territories. We also conduct an annual audit of the financial statements of most Crown corporations and many federal organizations.
• Performance auditing examines management practices, controls, and reporting systems with a focus on results. These audits examine whether government programs are being managed with due regard for economy, efficiency, and environmental impact, and with measures in place to determine their effectiveness. Covering a wide range of topics, these audits contain recommendations that can serve as a springboard to lasting and positive change in the way government functions. Follow-up audits are conducted to determine whether the government has made satisfactory progress in implementing the Office’s recommendations. Results are published in an annual Status Report.
• Special examinations are a form of performance audit of Crown corporations that are required every five years. We provide our reports to the corporations’ boards of directors.

Working together for better government

Parliament, the Auditor General, and government have distinct powers and responsibilities in the Canadian system of government. Working together, all three can help improve the management of government programs and services and the way government accounts to Parliament and the public for the results achieved.

• Parliament holds the government to account through its system of parliamentary committees. These committees may review a report by the Auditor General, conduct hearings, and make recommendations for action. Legislative assemblies provide the same oversight in the North.
• The Office of the Auditor General conducts a program of planned performance audits in addition to annual financial audits that are mandated by legislation. We report our findings to Parliament; these include good practices, areas requiring attention, and recommendations for improvement.
• The government sets priorities and provides programs and services to Canadians according to direction provided by laws passed by Parliament. The government may also implement changes recommended by the Auditor General’s reports.