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Practice Guide to Auditing Oversight


Audit Observations

In reporting audit observations, it is common practice not to name the senior officials responsible for oversight, but to simply refer to the position they held at the time (for example, “the chair of the board” or “the Minister”). Auditors should be particularly cautious when the findings clearly point to the behaviour of a specific individual, as any misrepresentation of the facts could result in litigation by that individual. In cases where auditors feel that the actions of a specific individual should be reported, they can use a management letter to present their observations to the relevant organization.

Auditors can also address a management letter to the audited organization when they have more findings than they can communicate in a single report or have findings that are not significant enough to be brought to the attention of their legislature but that should nonetheless be addressed.