Audit risks

Significant financial reporting risks

Contingencies

Why is it significant?

The Corporation has been named as a defendant in a number of legal actions. These actions are at various stages of their respective proceedings and the Corporation may not be in a position to mitigate its' liability exposure through insurance.

Our audit approach

• – Evaluation of Administration's understanding of legal claims including their assessment of liability exposure to the Corporation;
• – Legal inquiry letters to both internal and external counsel and evaluation of their response;
• – Review of Council minutes for the 2019 year and the period subsequent to year-end up to the date of our independent auditors' report;
• – Review Administration's basis for estimating the outcome of contingencies and ensure the accruals are reasonable and based on reasonable assumptions.