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Who is the Auditor General?
The current Auditor General is Mr. John Doyle, MAcc, CA. The Auditor General is independent of government, non-partisan and reports directly to the Legislative Assembly. The Auditor General is appointed by the Legislative Assembly for a six-year term and can be reappointed for one further, six-year term. The Auditor General is governed solely by the Auditor General Act. The Act enables the Auditor General and his/her staff to audit formally, all aspects of government and report findings arising from the audit.
What is the Auditor General’s role?
The Auditor General is the Legislative Assembly of British Columbia's independent auditor. Through the work of the Office, the Auditor General serves the people of British Columbia and their elected representatives by conducting independent audits and advising on how well government is managing its responsibilities and resources. Independence is a vital safeguard for the Office in fulfilling its responsibilities objectively and fairly based solely on the evidence found while conducting proper audit procedures.
Who does the Auditor General audit?
The Auditor General is the auditor of the government reporting entity (GRE) which consists of ministries, Crown corporations, and other government organizations such as universities, colleges, school districts, health authorities, and similar organizations that are controlled by or accountable to the Provincial government.
What types of audits does the Office conduct?
The Office of the Auditor General engages in two types of audits: financial and performance. Both styles of audits are carried out in accordance with the Assurance Standards of the Canadian Institute of Chartered Accountants.

With revenues and expenses totalling more than $50 billion annually, the Government of British Columbia manages what is essentially the largest business enterprise in the province. Through our financial audits, we provide independent assurance on the quality of government's financial reporting for this extensive enterprise. In addition to providing an independent audit opinion on the Province’s summary financial statements, we audit the financial statements of school districts, post-secondary educational institutions, health authorities and Crown agencies as outlined in our annual Financial Statement Audit Coverage Plan.

Good financial management is important. Government's extensive financial resources must be prudently managed to provide the array of services needed today as well as into the future. We examine a variety of issues related to financial management, such as financial controls, contract management and alternate service delivery, and working capital management.

Performance audits (also known as value for money audits) examine whether money is being spent wisely by government — whether value is received for the money spent. Specifically, they look at the organizational and program elements of government performance, whether government is achieving something that needs doing at a reasonable cost, and consider whether government managers are making the best use of public funds and adequately accounting for the prudent and effective management of the resources entrusted to them.

The aim of these audits is to provide the Legislature with independent assessments about whether government programs are implemented and administered economically, efficiently and effectively, and whether Members of the Legislative Assembly and the public are being provided with fair, reliable accountability information with respect to organizational and program performance. Click here for detailed information on performance audits.

How are audit topics chosen?
Our audit selection process is dynamic, and risk and significance-based. We regularly assess the government environment and rank potential audit topics based on a combination of impact (on dollars and people), urgency and our capacity to do the work. However, in order to accommodate emerging priorities, the work plan is subject to regular review and adjustment. As part of this process, we assess the interest of legislators and the public in potential audit topics. We ask MLAs on an ongoing basis what their interests are, and we actively invite audit suggestions from them.  

In addition to ideas from MLAs, we receive many suggestions from members of the public and groups such as non-profit organizations, labour organizations, industry associations and academic researchers. We review each of these suggestions carefully and incorporate them in our planning where possible. We encourage you to send us your suggestions.

What is the largest audit you perform?
The audit of government’s Summary Financial Statements is the largest audit the Office performs each year. The Summary Financial Statements encompass all government operations, including ministries, Crown corporations, trusts, colleges, school districts, universities, health authorities and other public entities.
How is the Auditor General's remuneration determined?
Section 4(1) of the Auditor General Act specifies that the Auditor General's salary is to be equal to that of the chief judge of the Provincial Court of B.C. Judges' salaries are set by an independent commission every three years. The Act also provides for reasonable reimbursement of other expenses incurred as part of the Auditor General's duties.  

Proactive Disclosure
As part of the OAG's commitment to accountability and transparency, below is a breakdown of the Auditor General's remuneration for the fiscal year 2010-11.

Compensation:

  • Base Pay: $262,756
  • Unused Vacation Payout: $56,559
  • Standard Benefits: $64,375
  • Other Contractual Benefits: $54,815 

Other Expenses:

  • Training: $500
  • Business Expenses: $2,196
  • Business Travel: $4,804
    • Vancouver, 29 May 2010: $458
    • Langley, 23 June 2010: $334
    • Vancouver, 4 August 2010: $199
    • Quebec, 28 August 2010: $3,444
    • Vancouver, 17 February 2011: $370
What are financial statements?
Financial statements are standardized documents that describe an entity’s financial performance and condition over a set period of time, often the fiscal year cycle.

 

In the private sector there are four main types of statements:

  • balance sheets
  • income statements
  • statements of retained earnings
  • statements of cash flows

Financial statements often contain a set of notes to explain more complex parts or provide other required information. These are usually considered an integral part of the financial statements.

Who uses financial statements?
In the private sector, they are often designed to suit a wide range of users, from current and prospective investors and stockholders, to those in oversight roles charged with holding management accountable for an entity’s financial performance.

 

In public sector financial reporting, many of the same statements and rules apply, but the focus also includes reporting on the stewardship of the assets that government is entrusted with.

Financial statements are intended to be understandable by readers who have a reasonable knowledge of the business, economic activities, and accounting framework they relate to, and who are willing to study the information diligently.

What is a financial statement audit?
A financial statement audit is a standardized process applied to a set of financial statements, such that an independent auditor can render a formal auditor’s opinion, which is usually attached to the front of the financial statements.
What is the purpose of a financial statement audit?
A financial statement audit provides assurance that:

 

  • the statements are presented fairly in accordance with standards that are generally accepted within the accounting profession; and
  • an independent audit process has been applied, subject to the limitations of an audit and scope applied, as described in the auditor’s report.

In short, readers of the audited financial statements can derive comfort about the true and fair presentation of the financial statements (subject to the inherent limitations of the audit process).

What are audit reservations?
Auditors have a professional responsibility to report any circumstances where the financial statements on which they are providing an opinion contain any significant errors or omissions according to generally accepted accounting principles(GAAP), which are authoritative standards (principles and rules) issued by the Canadian Institute of Chartered Accountants. 

 

Reporting any departures from GAAP allows the readers of the financial statements to assess these deviations when interpreting them.

There are three types of reservations:

  • An overall positive opinion, but with certain qualifications on GAAP departures.
  • An adverse opinion, with significant departures from GAAP.
  • Denial of opinion, where the auditor is unable to form an opinion, usually due to scope limitations.