THE PROCESS PRE-AUDIT PROCEDURES Every year, we prepare a Audit Coverage Plan which is approved by the Select Standing Committee on Public Accounts. It details our level of audit coverage for each entity in the GRE and is prepared in accordance with Canadian GAAS. For every entity we intend to audit, we provide an engagement letter detailing the audit objectives and scope, as well as our responsibilities and expectations. PLANNING During this phase, we gather information about your by interviewing key staff, documenting key processes and their internal controls, and by observing the application of specific controls and inspecting documents and reports. This information is used to assess the overall risks of possible misstatement in the financial statements and to create the audit plan. CONDUCTING In this phase, we carry out various tests of balances and significant transaction areas. Examples include obtaining third party confirmations, performing statistical testing and analytical procedures, and reviewing supporting documentation and explanations. We also evaluate the evidence obtained and compare it to the objectives determined in the planning phase in order to adjust our work, if needed, for any unplanned events or risks. WHAT TO EXPECT FROM A REPORTING FINANCIAL AUDIT The results of our audit are reported to the Audit Committee and copied to . We appreciate a prompt response from both regarding our observations and look forward to 8 Bastion Square your feedback. Victoria, British Columbia We also send a management letter, outlining any control Canada V8V 1X4 deficiencies encountered during the audit and recommendations Telephone: 250 419-6100 for improvement. If your organization is going to be mentioned Fax: 250 387-1230 in a public report, we will provide advance notice. Email: [email protected]

Detailed Financial Audit guide: www.bcauditor.com/FAguide This guide will introduce you to the Office of the WHAT IS A FINANCIAL AUDIT? WHAT YOU CAN Auditor General’s financial audit standards and practices, while also helping you understand what to expect and Financial communicate whether an organization’s financial EXPECT FROM US how to help ensure a smooth, efficient audit process. statements, as prepared by management, are fairly presented and free of material misstatements. These audits are designed to provide a NO SURPRISES We look forward to working with you. reasonable degree of assurance and are conducted in accordance with We will keep you informed and involved every step of the way, Canadian generally accepted auditing standards (GAAS). from discussions about the audit criteria to reviewing the draft report. This includes early and clear communication about the WHO IS THE AUDITOR During the audit, we: audit topic and the resources (time, space, staff) we will require. • examine evidence supporting the amounts and disclosures in the GENERAL? financial statements; VALUABLE FEEDBACK • assess the reasonableness and appropriateness of Audits are an opportunity to gain insight into your organization, The Auditor General is a non-partisan, independent Officer policies used and estimates made; and and aid in continuous improvement. of the Legislature who reports directly to the Legislative • evaluate the overall financial statement presentation. Assembly. TheAuditor General Act empowers the Auditor PROFESSIONALISM General and staff (known as the Office of the Auditor General We also consider (but do not provide assurance on) internal controls Our staff will exhibit professional behaviour throughout the or OAG) to conduct audits, report findings and make over financial reporting to: audit process. recommendations. • identify types of potential misstatements; • consider factors that affect the risk of material misstatements; and EXPERTISE The Act also states that the Auditor General must be given • design the nature, timing and extent of auditing procedures Audit teams will be well informed on their topics. If necessary, access to records, information and any explanations required necessary to allow the Auditor General to express an opinion on we will hire subject matter experts to ensure that we have the from a person or organization for the Auditor General to the financial statements. necessary knowledge to conduct the audit. perform his or her duties. We also follow a similar process for ministries, although they do not CONFIDENTIALITY WHAT DOES THE prepare financial statements. As per the Auditor General Act, all the records generated during our work are permanently exempt from disclosure under the AUDITOR GENERAL AUDIT? HOW TO PREPARE FOR terms of the Freedom of Information and Protection of Privacy Act. The Auditor General audits ministries, Crown corporations A FINANCIAL AUDIT INDEPENDENCE and government such as universities, colleges, The OAG reports directly to the Legislative Assembly, not to school districts, health authorities, and organizations To help meet the agreed upon objectives in the engagement letter, the government of the day, and our work is reviewed by the that are controlled by or accountable to the provincial we will ask you to provide: Select Standing Committee on Public Accounts. government (collectively referred to as the government • draft financial statements, working papers and supporting reporting entity [GRE]). information (we will provide you with a list at the start of the audit); • ready access to key financial and line staff; In some circumstances, the OAG may also audit entities • short-term working space on your premises; and outside the control of government. Every year, the OAG audits • clerical help as mutually agreed upon. government’s Summary Financial Statements. This is the largest financial statement audit conducted in British Columbia and We will meet with you to agree on a timeline for key dates and involves about 150 separate government organizations. milestones that will lead to the delivery of the audit opinion. A senior member of our team will be in regular communication to ensure the audit runs smoothly and that there are no surprises for your organization or governing body.