Report on the Key Compliance Attributes of the Internal Audit Function: March 31, 2022

Background

The Internal Audit and Evaluation Bureau (IAEB) helps the Treasury Board of Canada Secretariat (TBS) meet its objectives by providing valued advice to senior management for decision-making. The internal audit function provides this advice by taking a systematic, disciplined approach to improving the effectiveness of processes for risk management, control and governance. In doing so, the function provides independent and objective assurance that TBS’s activities are managed in a way that demonstrates responsible stewardship.

The IAEB conducts its audit work in accordance with:

The Directive on Internal Audit requires that all departments provide information on key compliance attributes to demonstrate the professionalism, performance and impact of their internal audit function. The attributes are not performance measures, and no targets are attached.

Professionalism of staff

Collectively, internal audit staff at TBS make up a diverse and multidisciplinary team that has the requisite knowledge, skills and other competencies to fulfill their responsibilities (refer to Table 1). In addition, the IAEB has a staff member who has advanced knowledge of data analytics.

Table 1: designations and certifications of internal audit staff members
Designation or certification Percentage of staff
Certified Internal Auditor (CIA) or Chartered Professional Accountant (CPA)Footnote *Footnote

55%

CIA or CPA in progress

45%

Other designationsFootnote (Certified Government Auditing Professional (CGAP), Certified Fraud Examiner (CFE), Certification in Risk Management Assurance (CRMA) and others)

9%

Professional practices and quality assurance

The internal audit function at TBS conducts its work in conformance with the Standards for the profession. Information related to the function’s activities, including status updates of ongoing engagements, is presented quarterly at the TBS Audit Committee.

An external assessment was completed in January 2022, and concluded that the internal audit function at Treasury Board generally conforms with the Institute of Internal Auditors’ Standards and their Code of Ethics. The external assessors further noted that the audit activity is well-managed, well-structured, regarded as very competent, and perceived as providing a high level of value to the organization. The results of the assessment were presented at the TBS Audit Committee in January 2022.

Risk-based audit plan and related information

The assurance and advisory engagements conducted by the IAEB are planned based on the approved, multi-year Integrated Audit and Evaluation Plan. The plan is reviewed and discussed at meetings of the Executive Committee, TBS Audit Committee and the TBS Performance Measurement and Evaluation Committee. Planned engagements are adjusted to reflect any changes to the priorities, risks and needs of TBS. Details on the audit and review engagements for 2021–22 are listed in Table 2.

Table 2: internal audit engagements planned or completed by the IAEB as of March 31, 2022
Project Status Date of report approval Date of publication Planned completion of management action plan Implementation status

Advisory: [Government of Canada Financial and Materiel Management] GCfm Readiness Assessment

Completed

August 21, 2021

n/a

n/a

n/a

Review: Cyclical Staffing Assessment

Completed

September 28, 2021

n/a

March 31, 2023

On track for completion

Audit of Acquisition Cards

Completed

October 6, 2021

January 18, 2022

May 2022

On track for completion

Advisory: Review of Documenting Decision-Making (Guidance on the Use of Code 699)

Completed

February 28, 2022

n/a

n/a

n/a

Advisory: Authorities Analysis for the Business Owner of Government of Canada Travel

Completed

February 28, 2022

n/a

n/a

n/a

Advisory: Information Management Observations from Recent Audit Activities

Completed

February 28, 2022

n/a

n/a

n/a

Advisory: Study on Co-Led Governance

Reporting

Pending

n/a

n/a

n/a

Audit of Duty to Accommodate for COVID-19 Vaccinations

Reporting

Pending

Pending

Pending

Pending

Value to management

While surveys were not sent to senior management to measure the usefulness of the areas audited, input from the audited organization was solicited through interviews with the Chief Audit Executive, as well as when the results were presented at the TBS Audit Committee. Senior management indicated a high level of satisfaction with the value provided by the IAEB to the committee.

In addition, an indication of the credible support provided by the IAEB to senior management is that the demand, from senior management, for advisory engagements and strategic and objective advice from the IAEB is surpassing the IAEB’s capacity. This has been the trend year over year. Moreover, the IAEB scans for new risks and priorities in formal and informal ways throughout the year, making in-year updates to its plan to ensure that engagements remain relevant and targeted.

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