Report on the Audit of Compliance with Financial Policy in Departmental Legal Services Units - September 2014

Appendix A – Audit Criteria

Based on a combination of the evidence gathered through documentation examination, analysis, transaction testing and interviews, each of the audit criteria listed below was assessed and a conclusion for the audit criteria was determined using the following definitions:

Conclusion on Audit Criteria Definition of Opinion
1. Criteria Met – Well Controlled Well managed or no material weaknesses noted, controls are effective.
2. Criteria Met with Exceptions – Controlled Requires minor improvements.
3. Criteria Met with Exceptions – Moderate Issues Requires improvements in the areas of material financial adjustments, some risk exposure.
4. Criteria Not Met – High Impact – Significant Improvements Requires significant improvements in the area of material financial adjustments, serious risk exposure.

The following are the audit criteria and examples of key evidence and/or observations noted which were analyzed and against which conclusions were drawn. In cases where significant improvements and/or moderate issues were observed, these were reported in the audit report.

Line of Enquiry 1 – Financial Management Governance
Audit Criteria Conclusion on Audit Criteria Examples of Key Evidence/Observations
Criterion 1.1: Effective oversight mechanisms are in place that foster prudent stewardship of public resources in the delivery of the mandate of the organization. 2 Finding 1, 4
Line of Enquiry 2 – Compliance with Government of Canada and Departmental Financial Management Policy Instruments
Audit Criteria Conclusion on Audit Criteria Examples of Key Evidence/Observations
Criterion 2.1: Financial transactions are managed in compliance with applicable legislation and policy instruments. 3 Finding 2, 3
Criterion 2.2: Budget management practices provide timely and accurate financial information. 1 Finding 5