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1091 Complaints and Allegations
Jun-2021

Overview

This section outlines the Office’s policies and procedures to address any complaints and allegations by OAG staff, audit entities, or other third parties that the Office or its staff have failed to comply with professional standards, including relevant ethical requirements, applicable legal and regulatory requirements, or the Office’s system of quality control.

CPA Canada Assurance Standards

Office

Annual Audit

Performance Audit, Special Examination, and Other Assurance Engagements

CSQC 1.55 The firm shall establish policies and procedures designed to provide it with reasonable assurance that it deals appropriately with:

(a) Complaints and allegations that the work performed by the firm fails to comply with professional standards and applicable legal and regulatory requirements; and

(b) Allegations of non-compliance with the firm's system of quality control.

As part of this process, the firm shall establish clearly defined channels for firm personnel to raise any concerns in a manner that enables them to come forward without fear of reprisals. (Ref: Para. A70)

CSQC 1.56 If during the investigations into complaints and allegations, deficiencies in the design or operation of the firm's quality control policies and procedures or non-compliance with the firm's system of quality control by an individual or individuals are identified, the firm shall take appropriate actions as set out in paragraph 51. (Ref: Para. A71-A72)

CSQC 1.51 Recommendations for appropriate remedial actions for deficiencies noted shall include one or more of the following:

(a) Taking appropriate remedial action in relation to an individual engagement or member of personnel;

(b) The communication of the findings to those responsible for training and professional development;

(c) Changes to the quality control policies and procedures; and

(d) Disciplinary action against those who fail to comply with the policies and procedures of the firm, especially those who do so repeatedly.

CSQC 1.59 The firm shall establish policies and procedures requiring documentation of complaints and allegations and the responses to them.

Source of Complaints and Allegations (Ref: Para. 55)

CSQC 1.A70 Complaints and allegations (which do not include those that are clearly frivolous) may originate from within or outside the firm. They may be made by firm personnel, clients or other third parties. They may be received by engagement team members or other firm personnel.

Investigation Policies and Procedures (Ref: Para. 56)

CSQC 1.A71 Policies and procedures established for the investigation of complaints and allegations may include, for example, that the partner supervising the investigation:

  • Has sufficient and appropriate experience;
  • Has authority within the firm; and
  • Is otherwise not involved in the engagement.

The partner supervising the investigation may involve legal counsel as necessary.

OAG Policy

Employees, audit entities, third parties and members of the public are entitled to file a complaint or allegation if they believe the Office has failed to comply with professional standards, including relevant ethical requirements, regulatory and/or legal requirements, or the system of quality control. Employees of the Office should consult the differences of opinion mechanism as a first step (see OAG Audit 3082 for guidance on resolving differences of opinion). [Nov-2011]

Complaints and allegations will be received by the Auditor General or the Chair of the OAG Audit Committee. When appropriate, Legal Services will assist the Auditor General or the Chair of the OAG Audit Committee in reviewing complaints or allegations and may, in certain circumstances, lead the investigation—for example, if the complaint or allegation concerns potential or pending litigation. [Sep-2014]

There will be no retaliation by the Office, its employees, or its executive committee against any Office employee, audit entity, or third party for making a complaint in good faith regarding compliance with professional standards, including relevant ethical requirements, regulatory and/or legal requirements, or the system of quality control. [Nov-2011]

Confidentiality will be maintained throughout the investigation process to the extent practical, while taking into account the particular circumstances and any applicable legal obligations. Therefore, only those with a need to know will be made aware that an investigation is ongoing. All reports and records associated with complaints or allegations will be restricted to designated investigators, Legal Services, and members of the executive committee. [Nov-2011]

Where the results of the investigation indicate deficiencies in the design of the Office's quality control policies and procedures, or non-compliance with the Office's system of quality control by an individual or individuals, the Office should take appropriate actions, such as

  • remedial action in relation to an assurance engagement or an individual;
  • communication of the findings to those responsible for training and professional development;
  • changes to the quality control policies and procedures; and
  • disciplinary action against those who fail to comply with the policies and procedures of the Office, especially those who do so repeatedly. [Nov-2011]

Where the results of the investigation confirm instances of breaches of relevant ethical requirements, they shall be communicated to engagement leaders who have worked directly with and relied on the work of the individual(s) concerned. [Jun-2021]

At least once per calendar quarter and whenever deemed necessary, a report shall be submitted to the executive committee that summarizes each new complaint or allegation made during the quarter and any outstanding complaints or allegations that remain unresolved and that show specifically:

  • a description of the substance of the complaint(s),
  • the status of the investigation(s),
  • any findings and conclusions of the investigator(s), and
  • any recommendations of the investigator(s). [Mar-2012]

Following this process, the Office will send a response to the person making the complaint or allegation. This response may reject or accept the complaint or allegation. If the complaint or allegation is accepted, the response will provide information on corrective actions taken. [Nov-2011]

OAG Guidance

What constitutes a complaint?

A complaint or an allegation under this policy must be related to the failure of the Office to perform the audit in compliance with the professional standards, including relevant ethical requirements, and regulatory and/or legal requirements, including non-compliance with the Office's system of quality control. The complaint or allegation must be made in good faith.

It is important to note that this complaint mechanism is designed to deal exclusively with the failure noted here. It does not provide a means to question and challenge audit results and findings or the professional judgment underlying them.

How to make a complaint?

Employees, audit entities, third parties, or members of the public may submit a complaint or an allegation by mail or email to:

Office of the Auditor General of Canada
240 Sparks Street
Ottawa, Ontario  K1A 0G6
Attention: Complaints and Allegations
complaints-plaintes@oag-bvg.gc.ca

Employees should provide the following information:

  • their name, telephone number, and the group in which they work, unless they choose to remain anonymous; and
  • any relevant information that would facilitate investigating the complaint or allegation.

Audit entities, third parties, or members of the public should provide the following information:

  • their name, telephone number, and/or email address, unless they choose to remain anonymous;
  • information about their  relationship to the Office (audit entities—specify the name of the department, Crown corporation or agency);
  • any relevant information would facilitate investigating the complaint or allegation.

Information on how to make a complaint will be provided to audit entities, third parties, and members of the public through the OAG website.

While the Office will accept all anonymous complaints and allegations, they are generally more difficult to investigate and no response will be communicated on action taken.

Rights and responsibilities of involved parties

All parties have various rights and responsibilities throughout the complaint and allegation process, including the following:

  • The individual making the complaint or allegation has a right to do so and to obtain a review without fear of retaliation or reprisals.
  • Persons against whom a complaint has been lodged have the right to be informed promptly that a complaint has been filed.
  • Both parties have an obligation to cooperate with those responsible for the investigation.
  • Both parties have the right to be accompanied by a person of their choice during the interviews related to the complaint or allegation, when appropriate.
  • The complainant, if an employee, has the right to know that his or her written complaint or written comments will be excluded from his or her personal file.
  • Both parties have the right to be kept informed throughout the process, subject to the Privacy Act.
  • Both parties have the right to be informed of the outcome of the investigation.
  • The complainant is to be informed of any corrective action.
  • Both parties have a right to an expeditious resolution of the complaint.

Procedures for dealing with complaints or allegations

  1. The Office has 90 days to investigate and respond to the complaint or allegation. The Auditor General or the Chair of the OAG Audit Committee may extend this period if he or she finds that there are extenuating circumstances.
  2. The Auditor General or the Chair of the OAG Audit Committee may elect to apply the OAG workplace investigation process to the extent applicable.
  3. The Auditor General or the Chair of the OAG Audit Committee will review the complaint or allegation and determine if it is made in good faith. He or she will assign responsibility to investigate the complaint or allegation to an individual at the level of Principal or higher within the Office, or to a suitably qualified external investigator/mediator. When appropriate, a member of Legal Services may assist in reviewing complaints or allegations and may, in certain circumstances, lead the investigation—for example, if the complaint or allegation concerns potential or pending litigation. In no instance will an investigation be conducted by someone who is in any way connected with the public sector entity, the engagement or the staff involved in the complaint or allegation.
  4. Unless otherwise directed by the Auditor General or the Chair of the OAG Audit Committee, the investigator will conduct an investigation of the complaint or allegation and report his or her findings to the Auditor General or to the Chair of the OAG Audit Committee. The investigator may consider using mediation techniques to resolve the matter. If the investigator's findings indicate that the allegations in the complaint are substantive and true, the investigator will recommend appropriate corrective action.

If a complaint or an allegation concerns potential or pending litigation, the Auditor General or the Chair of the OAG Audit Committee may specify, at any time, a different procedure for investigating and treating the complaint or allegation.