Guidelines on Exemptions from Internal Audit

Subsection 131(3) of Part X of the Financial Administration Act (FAA) requires Crown corporations to have conducted internal audits in respect of themselves and their wholly owned subsidiaries. The Governor in Council may waive the requirement if it is not cost-beneficial. The steps to be followed to seek an exemption are detailed below.

An exemption from internal audit will be recommended to the Governor in Council for a three-year period, provided that the following conditions are met:

  1. detailing the mechanisms used to assess compliance with subsections 131(1) and (2), absent internal audit;
  2. indicating that the auditor (and examiner, if different from the auditor) is aware of, and concurs with, the request for exemption; copies of correspondence with the auditor, excerpts of audit/special examination reports, or Audit Committee minutes should be attached as appropriate to support such a statement;

August 8, 1988
Revised January 13, 1998 to update FAA Part and section references.

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