Audit risks and results

We highlight our significant findings in respect of significant financial reporting risks as identified in our discussion with you in the Audit Plan, as well as any additional significant risks identified.

1 Significant Risk	Fraud risks
Significant financial reporting risk	Why is it significant?
Fraud risk from revenue recognition	This is a presumed fraud risk.
Fraud risk from management override of controls	This is a presumed fraud risk

Our response and significant findings

• We have rebutted this presumed fraud risk as it is not appropriate when considering the manner in which performance is measured by the Corporation.
• As the risk is not rebuttable, our audit methodology incorporates the required procedures in professional standards to address this risk. These procedures include testing of journal entries and other adjustments, performing a retrospective review of estimates and evaluating the business rationale of significant unusual transactions, as well as other procedures as considered appropriate by us.
• KPMG reviewed a sample of expense reports for the Mayor, his staff, Council and the Corporate Leadership Team. We reviewed the policies of the Corporation and ensured that the expense reports adhered to the policies and were appropriately authorized and supported.
• All expenses were appropriately authorized, supported and in compliance with the Corporation’s policies.
• No exceptions were noted in our testing.