Auditor General Act

Auditor General Act
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Title	Auditor General Act
Enacted by	Parliament of Canada
Enacted	1971
Status	in force

Auditor General Act.

The Auditor General Act is a statute that establishes the office and functions of the Auditor General and sets procedural and institutional rules for independent public auditing. It situates the Auditor General within constitutional and parliamentary frameworks such as Parliament of Canada, the House of Commons, the Senate of Canada and connects to fiscal instruments like the Estimates of the Government of Canada, the Public Accounts of Canada and the Financial Administration Act. The Act shapes relations with oversight institutions including the Office of the Auditor General of Canada, the Treasury Board of Canada Secretariat, the Privy Council Office and departmental audit branches.

Background and enactment

The Act emerged from reforms inspired by reports from commissions and inquiries including the Royal Commission on Government Organization (Glassco Commission), debates during sessions of the 34th Canadian Parliament and comparative practices from entities such as the Comptroller and Auditor General (United Kingdom), the United States Government Accountability Office and the Auditor General of Ontario. Early drafts reflected principles in the Canadian Charter of Rights and Freedoms era and responded to fiscal scandals involving Crown corporations like Air Canada and programs administered by departments such as Health Canada and Indian and Northern Affairs Canada. Legislative sponsors from parties including the Liberal Party of Canada and the Progressive Conservative Party of Canada guided the bill through committees of the House of Commons Standing Committee on Public Accounts before royal assent.

Mandate and powers

The Act grants statutory authority for performance audits, financial audits, attest engagements and compliance examinations covering entities such as Crown corporations, the Canada Revenue Agency, the Bank of Canada and agencies like Canada Post Corporation. It delineates powers to access books and records, compel production from ministers including the Minister of Finance and officers such as the Auditor General of Canada's designated auditors, and to conduct examinations relevant to statutes like the Income Tax Act and agreements under the Canada Pension Plan. The Act balances privileges and immunities through interaction with the Access to Information Act, the Privacy Act, and parliamentary privilege in the House of Commons while ensuring independence from the Prime Minister of Canada and executive ministries.

Organizational structure and appointments

The Act defines an institutional arrangement centered on the officeholder titled Auditor General, appointed by the Governor General of Canada on address of the House of Commons and the Senate of Canada for a fixed term. The office encompasses deputy auditors, principal auditors, regional offices in cities such as Ottawa, Toronto, Vancouver and specialized units dealing with sectors like Indigenous and Northern Affairs and programs from Public Services and Procurement Canada. Staffing and classification follow statutes like the Public Service Employment Act and interfaces with unions such as the Public Service Alliance of Canada. Appointment processes involve parliamentary committees including the Standing Committee on Procedure and House Affairs and oversight by officers such as the Parliamentary Budget Officer and the Conflict of Interest and Ethics Commissioner.

Duties and functions

Under the Act, core duties include conducting annual financial statement audits of consolidated accounts, performance audits of programs like those in Employment and Social Development Canada and attest audits for entities such as the National Research Council and Canadian Broadcasting Corporation. Functions extend to special examinations of Crown corporations under concepts similar to the Canada Business Corporations Act regime, investigations into expenditure irregularities akin to cases involving the RCMP or Correctional Service of Canada, and thematic studies analogous to reports on environmental stewardship administered by Environment and Climate Change Canada. The Act authorizes publishing audit reports, recommending corrective measures to ministers including the Minister of Public Services and Procurement and alerting parliamentary committees like the House of Commons Standing Committee on Public Accounts.

Reporting and accountability

The Act prescribes report delivery schedules tied to parliamentary sittings, tabling procedures in the House of Commons and protocols for the Public Accounts Committee and the Senate Committee on National Finance. It requires presentation of annual reports such as the Report of the Auditor General and special reports on matters comparable to audits of the Northern Pipeline Agency or reviews of programs in Fisheries and Oceans Canada. The Act frames accountability through audit follow-ups, compliance with directives from the Treasury Board of Canada Secretariat, and public disclosure standards similar to the Public Sector Accounting Board guidance. It limits judicial review by courts like the Federal Court of Canada while defining remedies and interactions with tribunals such as the Tax Court of Canada.

Amendments and legal challenges

Since enactment, the statute has been amended in response to shifting fiscal architecture, parliamentary reforms, and high-profile legal disputes involving access to information, secrecy, and privilege. Amendments addressed scope for performance auditing, relationships with Crown-Indigenous Relations and Northern Affairs Canada, and powers concerning Crown corporations subsidiaries. Legal challenges have invoked jurisdictions of the Supreme Court of Canada, interpretations under the Canadian Charter of Rights and Freedoms, and statutory conflicts with acts like the Access to Information Act; cases considered by appellate courts including the Federal Court of Appeal have shaped precedents on audit access and confidentiality. Contemporary debates involve proposals from lawmakers in the House of Commons and think tanks such as the Fraser Institute and advocacy groups including the Canadian Taxpayers Federation about further reforms.

Category:Canadian federal legislation