Audits
The Auditor General is responsible for carrying out financial (excluding external attest audit), operational, compliance, performance (value for money), forensic and other special reviews of all programs, activities and functions of City divisions and certain City agencies and corporations.
Performance Audits
A performance audit is also called a ‘value for money’ audit. A performance audit reviews a program or area to assess if it is achieving its objectives effectively, economically, and efficiently. The audit process brings a systematic, disciplined approach to evaluate programs and areas. The Auditor General’s Office follows Government Auditing Standards in all of its work.
These audits may include any or all of:
(a) determining the extent to which the desired results or benefits established by the legislature or other authorizing body are being achieved,
(b) the effectiveness of organizations, programs, activities, or functions,
(c) whether the City division is acquiring, protecting, and using its resources (such as personnel, property, and space) economically and efficiently, and
(d) whether the City division has complied with laws and regulations applicable to the program.
(e) IT and cybersecurity audits or reviews
(f) financial audits (excluding attest) include determining whether:
(i) financial information is presented in accordance with established or stated criteria,
(ii) the entity has adhered to specific financial compliance requirements, or
(iii) the entity’s internal control structure over financial reporting and/or safeguarding assets is
suitably designed and implemented to achieve control objectives.
Fraud & Waste Hotline
The City of Toronto’s Fraud & Waste Hotline Program is operated by the Forensic Unit of the Auditor General’s Office. The general public, City staff and anyone doing business with the City can report suspected fraud, waste, or wrongdoing involving City resources.
Follow-up of Auditor General Recommendations
The Auditor General follows up on the status of implementation of outstanding recommendations from her audits, investigations, and other reports.
The follow-up process provides accountability and transparency for City Council and the public by reporting on the status of the implementation of the Auditor General’s recommendations and the intended benefits. This process is important as it helps to ensure that management has taken appropriate actions to implement the recommendations from previous Auditor General reports.
The Auditor General’s follow-up process begins when the recommendations in an audit report are adopted by Audit Committee and City Council. A real time system is used to monitor the status of recommendations as they are addressed by management. The system allows management to update their action plans for open audit recommendations and to upload supporting documents for recommendations reported as fully implemented at any time. The financial and non-financial impacts realized by implementing the Auditor General’s recommendations are reported to the Audit Committee annually for:
- City Divisions, and
- The City’s Agencies and Corporations.
External Attest Audits
The City of Toronto Act requires the appointment of an auditor licensed under the Public Accounting Act, 2004 who is responsible for annually auditing the accounts and transactions of the City and its agencies and corporations. The external auditor expresses an opinion on the financial statements of these bodies based on the audit in a report, which is considered by Audit Committee and then City Council.
The Auditor General has an oversight role related to the work of the external auditors. Currently, KPMG LLP has been engaged to conduct audits of the consolidated financial statements of the City and its major agencies and corporations for the years 2020 to 2024 inclusive. Grant Thornton LLP has been engaged to provide external audit services to perform the financial statements audits for City Arenas, Community Centres and Miscellaneous Entities for the years 2023 to 2027 inclusive.