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 local boards (restricted definition), and the offices of the Mayor and members of Council.
Financial Audits (Excluding Attest)
Financial-related audits include determining whether:
(a) financial information is presented in accordance with established or stated criteria,
(b) the entity has adhered to specific financial compliance requirements, or
(c) the entity’s internal control structure over financial reporting and/or safeguarding assets is suitably designed and implemented to achieve control objectives.
Operational, Compliance, Performance Audits
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.
Fraud and Waste Hotline
Undertakes forensic investigations including suspected fraudulent activities and manages the fraud hotline referring issues to divisional management and the City’s Internal Audit Division as appropriate.
On an annual basis, the Auditor General notifies the City Manager, or appropriate management representative for agencies and corporations, in writing of his outstanding recommendations. Management staff will report back to the Auditor General on recommendations that have been implemented. The Auditor General then verifies that the recommendations have in fact been implemented.
The results of the follow-up of recommendations are reported to Audit Committee annually for:
- City Divisions
- The City’s Agencies and Corporations
- The Fraud and Waste Hotline
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 oversees the work of the external auditor and manages the process for awarding the contract to perform the audit. Currently, PriceWaterhouseCoopers has been engaged to conduct audits of financial statements of the City and its major agencies and corporations.Welch LLP has been engaged to provide external audit services to perform the financial statement audits for City Arenas, Community Centres and Miscellaneous Entities for the years 2013 to 2017 inclusive.