Item - 2019.AU1.11

The Audit Committee recommends that:

1. City Council receive the report (January 30, 2019) from the Auditor General for information.

Compliance with Government Auditing Standards is an important component of audit quality and is critical in maintaining credibility with City Council, management and taxpayers.

Government Auditing Standards require that audit organizations performing audits in accordance with Generally Accepted Government Auditing Standards undergo an external peer review every three years. Chapter 3 of the Toronto Municipal Code also requires that the “Auditor General shall undergo an external peer review once every three years to ensure compliance with government auditing standards” and that “the results of the external peer review shall be reported to Council through the Audit Committee”.

An external peer review answers the question, “Who audits the auditor?”

This report provides the results of the External Quality Control Review performed by the Association of Local Government Auditors (ALGA) for the period January 1, 2015 through December 31, 2017. The Auditor General's Office received the highest possible rating on its peer review – the fifth time the Office has received this rating.