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 Treasury Board Policy on Internal Audit
the Institute of Internal Auditors’ International Standards for the Professional Practice of Internal Auditing (Standards)

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 designations^{Footnote †} (Certified Government Auditing Professional (CGAP), Certified Fraud Examiner (CFE), Certification in Risk Management Assurance (CRMA) and others)	9%
Footnote 1 Other designations (Certified Government Auditing Professional (CGAP), Certified Fraud Examiner (CFE), Certification in Risk Management Assurance (CRMA) and others). Return to footnote * referrer Footnote 2 Staff members may hold multiple designations or certifications. Depending on the designations or certifications that a staff member has or is working toward, they may be counted in all three statistics. As a result, the percentages in Table 1 should not be considered parts of a whole. Return to footnote † referrer

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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Date modified:: 2022-07-18

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