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

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Testing of the design and operating effectiveness of key controls over financial reporting will lead to ensuring the on-going monitoring and continuous improvement of the CRA’s system of ICFR. 3.2 Scope of CRA assessment as of March 31, 2012 Scope In order to define the scope of its ICFR assessment, the CRA evaluates the main accounts and line items used in preparing the agency activities and administered activities financial statements to determine where there are risks that, individually or in combination with others, could reasonably result in a material misstatement. Based on this evaluation, the following key business processes are currently in scope: Agency activities financial statements Business Process Financial close and reporting Fixed assets Payroll Operating expenditures (procurement to pay) Budgeting and projections Administered activities financial statements Business Process T1 individual income tax (includes unapplied taxes and source deductions) T2 corporation income tax T3 trust income tax Non-resident income tax Goods and services tax/harmonized sales tax (GST/HST) Excise taxes and duties Benefits ANNUAL REPORT 2011-2012 Design and Implementation Testing Remediation (if necessary) CANADA REVENUE AGENCY Operating Effectiveness Testing Remediation (if necessary) Entity Level Controls General Computer Controls - Agency and Administered Activities Business Process Controls - Agency and Administered Activites Ongoing Monitoring of Controls
Control frameworks The CRA uses the Committee of Sponsoring Organizations (COSO) framework to assess the design effectiveness of its system of internal controls, since it is the most widely used model of control for purposes of assessing ICFR. The COSO framework is based on five interrelated components of control. Each component contains a number of principles and attributes that an organization’s ICFR may be assessed against: control environment, risk assessment, control activities, information systems and communication, and monitoring. Because the COSO only provides limited guidance to help organizations establish and evaluate information technology controls, the CRA uses the COBIT (Control Objectives for Information and related Technology) for SOX (Sarbanes-Oxley Act of 2002) framework to document and assess the design of its information technology controls that are relevant to financial reporting. 4. Progress and assessment results as of March 31, 2012 This section summarizes the CRA’s key assessment results from the design and operating effectiveness testing completed to date. In accordance with the plan published in the 2010-2011 Annex, the CRA completed the following activities for the 2011-2012 fiscal year. Agency activities financial reporting An assessment of the operating effectiveness of key controls over the five business processes related to financial reporting on agency activities as well as relevant application controls and information technology general controls for the Corporate Administrative System, the purchasing system (Synergy), and the budget tracking system. As a result of this review, the CRA identified areas for improvement and developed action plans to address findings on key controls related to segregation of duties and the design and management of access profiles. Administered activities financial reporting Further to the requirements of the tax collection agreements, the Office of the Auditor General completed its audit of the CRA’s description of the design effectiveness of the individual (T1) income tax program as assessed by the CRA as of November 30, 2010. The audit included testing 88 entity level controls, 54 information technology controls over 44 processing systems, and 102 business process activities. The audit results confirmed that the CRA needs to enhance the design of certain key controls in the following areas: Documentation: Greater consistency in the quality and availability of documentation for audit trail purposes. Information technology general controls: Strengthen controls related to access and change management. Segregation of duties: Strengthen access provisioning practices as they relate to segregation of duties, and strengthen business process controls related to the design and management of access profiles. The CRA’s internal audit function completed an assessment of the operating effectiveness of controls related to the corporate (T2) income tax program. Management intends to use the assessment results to identify and plan any adjustments needed to enhance the effectiveness of these controls in preparation for the Auditor General’s next controls audit under the tax collection agreements that will be completed in accordance with the Canadian Standard on Assurance Engagements 3416 auditing guidelines. These reviews, including the Auditor General’s report, included entity level control assessments and confirmed that the CRA continues to have a strong system of entity level controls. CANADA REVENUE AGENCY 137 ANNUAL REPORT 2011-2012
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“Canadian businesses are a vital
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Finally, the Board continued to exa
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“The CRA has always been committe
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[our mission] ANNUAL REPORT 2011-20
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12 we issued 111 million benefit an
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Given the importance of the benefit
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[conclusion] During 2011-2012, we a
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value of the payments processed was
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[providing information] web site Th
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There has been a substantial increa
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[voluntary disclosures] The Volunta
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ANNUAL REPORT 2011-2012 we identifi
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Specialized program areas also use
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pre-payment review of GST/HST refun
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to 2.3% of Gross Domestic Product i
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Our performance measures for addres
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[services] service complaints Our S
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Indicator 2010-2011 2011-2012 Chang
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Draft - Protected B 5 November 2012
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improving our human resources capac
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developed a strategy for managing t
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Board of Management Oversight Frame
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[board’s priorities and accomplis
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[management of personnel] Against a
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[committee membership and director
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ANNUAL REPORT 2011-2012 CANADA REVE
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ANNUAL REPORT 2011-2012 [service st
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ANNUAL REPORT 2011-2012 Service Sta
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Claims - video and film tax credits
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challenges and exceptions advance i
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ANNUAL REPORT 2011-2012 [other item
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Benefit programs and benefit-relate
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D Dispute - General term to designa
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S Service standard - A public state
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ANNUAL REPORT 2011-2012 CANADA REVE
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Canada Revenue Agency Audited Finan
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Opinion In my opinion, the financia
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Expenses (note 8) Statement of Oper
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Page 93 and 94: 6. Accounts receivable and advances
Page 95 and 96: 8. Segmented information - Expenses
Page 97 and 98: 10. Related party transactions The
Page 99 and 100: 12. Board of Management Pursuant to
Page 101 and 102: Financial Statements Discussion and
Page 103 and 104: Discussion and analysis Analysis of
Page 105 and 106: Non-financial assets Non-financial
Page 107 and 108: Canada Revenue Agency Audited Finan
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Page 111 and 112: Canada Revenue Agency Statement of
Page 113 and 114: Canada Revenue Agency Statement of
Page 115 and 116: A new accounting standard issued by
Page 117 and 118: Expenses and Recoveries. Except for
Page 119 and 120: 5. Amounts payable to taxpayers The
Page 121 and 122: the CRA administers. It does not in
Page 123 and 124: 15. Pension contributions, interest
Page 125 and 126: Individual and Trust Income Tax Ind
Page 127 and 128: Income Tax Revenues - Individual an
Page 129 and 130: sales tax credits. This was partial
Page 131 and 132: summary information as of March 31,
Page 133 and 134: 1.5 Significant changes in fiscal y
Page 135: A delegated authorities matrix whic
Page 139 and 140: The CRA will move into an ongoing a
Page 141 and 142: Canada Revenue Agency - Unaudited S
Page 143 and 144: $73.9 million for increased disburs
Page 145 and 146: Performance Summary (in thousands o
Page 147: Authorities approved after Main Est
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