This report explains what the Alberta government must do to improve its systems, and the results of our audits of government and ministry financial statements.
Objective and Scope
Government organizations need a systematic approach to manage risk. They need formal processes to explicitly link risks with controls and to ensure effective internal controls. The government and certain Provincial agencies would likely have avoided weak internal controls if they had used formal risk management. This conclusion is based on the interrelationship of explicit risk analysis, cost-effective internal control, and internal auditing. Poor risk management exposes Albertans to unnecessary costs. Good risk management improves the government’s ability to reach its goals.
This report contains 80 recommendations. Government departments should improve internal control systems. Deputy Ministers need internal audit to provide assurance that significant government systems and risks are effectively managed.