Final Audit Report - Audit of the Key Financial Controls - Year 2

Key Components of the Internal Control Over Financial Reporting Framework

Chart showing key components of the internal control over financial reporting framework.

Control Environment: Public Service values; Learning, Innovation and Change Management; Policy and Programs; People; Client-focused Service; Risk Management; Stewardship; Accountability; Governance and Strategic Directions; Results and Performance

Financial Risk Assessment and Financial Risk Management: Financial Reporting Objectives; Financial Reporting Risks; Fraud Risk

Monitoring: Ongoing and Separate Monitoring and Assessments; Reporting Deficiencies

Control Activities

For each business process below:

1. Cost effective control activities;
2. integration with assessment of risks over financial reporting;
3. supporting policies and procedures assessment; and
4. management of information (e.g. IT Application Controls and Database and Records Management controls)

Management of Parliamentary Appropriations: Budgeting; Management Variances Reporting; Funding and Resource Allocation (Treasury Board Submissions)

Revenue/Receivables/Receipts: Revenues; Accounts Receivable; Cash Receipts; Inter-departmental Settlements

Purchasing/Payables/Payments: Transfer Payment; Vendor Master Data; Purchase order; Purchase requisition; Contracting; Acquisition Card; Hospitality; Travel Card; Receipt of goods; Invoice postings; Payments; Petty cash; Asset Management; Programs; Inter-departmental Settlements

Payroll: Employee data; Processing of payment; Advance/overpayment; Reconciliation; Period end close

Capital Assets: Asset management

Financial statement, year-end and reporting: General Ledger Maintenance; Non-recurring transactions; Period Close; Consolidations; Financial Statements Preparation; Accruals and Management Estimates

Information and Communication: Financial Reporting Information; Internal Communication; Internal Control Information; External Communication