CRA Annual Report to Parliament 2011-2012 (PDF - Agence du ...

A delegated authorities matrix which is regularly reviewed and updated.
A formal learning policy and annual individual learning plan process.
3. Assessment of CRA’s system of ICFR
The CRA’s financial statements have been audited, as required under the Canada Revenue Agency Act, by the Office of the
Auditor General since 1999-2000. In parallel, the Audit Committee of the Board and CRA senior management have been
providing increased oversight of the preparation and presentation of financial information including reviewing information
regarding the design and effectiveness of its system of ICFR as they relate to the CRA’s administered and agency activities.
The objective of these reviews is to obtain greater assurance that significant financial reporting risks are being properly
mitigated and our system of ICFRs is being adequately updated, tested and monitored.
In addition to the assessments that are conducted in accordance with the TB Policy on Internal Control, the CRA must also
conduct assessments and undergo audits of a portion of its ICFR on Individual (T1), Corporate (T2) and Estate and Trust (T3)
income tax programs under provisions outlined in the tax collection agreements between the federal government and the
provincial and territorial governments. These assessments are audited by the Office of the Auditor General in accordance
with the standards set out in the Canadian Institute of Chartered Accountants Handbook under the Canadian Standard on
Assurance Engagements 3416 (formerly Section 5970), the guidance for audits of controls at a service organization. Audit
results are reported to provincial and territorial governments to provide independent, audit-level assurance that the controls
at the CRA that support the administration and reporting of provincial and territorial income tax revenue are properly
designed to mitigate key risks and are operating effectively. The reports are intended to be used by provincial and territorial
ministries, and their auditors, and are not public documents. However, the high level results of these audits are included in
this document as they related to a key component of the CRA’s system of ICFR related to administered activities.
To date the CRA has issued three Section 5970 control reports regarding the design of its ICFRs. The first two related to the
T2 program as at March 31, 2007 and November 30, 2008, and the third was for the T1 program as at November 30, 2010. The
fourth controls report relates to the operating effectiveness of the T2 program, and is currently being prepared for audit by
the Office of the Auditor General during the 2012-2013 fiscal year.
3.1 Assessment baseline
Consistent with the Treasury Board Policy on Internal Control, the CRA has implemented a systematic risk-based and multiyear
assessment plan of the design and operating effectiveness of its system of ICFR.
Through design effectiveness, the CRA will ensure that key controls relevant to financial reporting have been properly
identified, documented, and in place and that they are aligned with the risks they aim to mitigate and that any remediation
is addressed appropriately and in a timely manner. This includes ensuring appropriate mapping of key processes and
information technology systems to the main financial statement accounts or class of transactions.
Through operating effectiveness, the CRA will ensure that the application of key controls over financial reporting has been
tested over a defined period, they are working as intended and that any required remediation is addressed appropriately and
in a timely manner.
Such testing covers all agency level controls which include corporate or entity, general computer and business process
controls.
CANADA REVENUE AGENCY
135
ANNUAL REPORT
2011-2012