For Information Only
For entities with public accountability, auditing standards require auditors to communicate specific information to an Audit Committee. The City’s external auditors will be presenting their Audit Findings Report with respect to the 2015 year-end to the Audit Committee. Their presentation will cover the following issues:
The purpose of their presentation will be to communicate to the Committee a summary of any significant findings and other matters which our external auditors believe should be brought to your attention, thereby assisting this Committee with respect to their review and recommendation to Council for approval of the 2015 Financial Statements. Attached is the complete Audit Findings Report prepared by the external auditors.
In addition to reporting all financial transactions appropriately following Generally Accepted Accounting Principles for local governments established by the Public Sector Accounting Board of The Canadian Institute of Chartered Professional Accountants of Canada, management also has a responsibility to apply their best judgement at the time in preparing accounting estimates and/or disclosures in the financial statements.
The concept of materiality is applied in determining whether or not the statements are considered to be a fair representation. Materiality includes both qualitative and quantitative factors which are assessed in the light of whether or not they may be likely to influence the decisions made by persons relying on the financial statements. The external auditors have confirmed that there are no material unadjusted financial statement misstatements.
A further requirement of any audit is to obtain sufficient understanding of internal controls and to test those internal controls so that the external auditors can place reliance on them as part of the audit. The Audit Findings Report comments on weaknesses that have been identified as part of the audit and those identified in the report relate to information technology recommendations.