Regulatory Audit Office

Welcome to the web page of the Regulatory Audit Office (“Audit Office”). Here you will find information to help you understand the role and responsibilities of the Audit Office. This overview will also assist you in finding the OEB’s accounting and Reporting and Record-Keeping Requirements (RRR) reference materials.

What is the role of the Audit Office?

The Audit Office, headed by the Chief Regulatory Auditor (CRA), supports the OEB in the performance of its mandate by providing monitoring and auditing services related to the financial and non-financial performance of regulated entities. The Audit Office does this by determining that the data collected from regulated entities is reliable for decision making and by supporting the OEB's decision making process with respect to financial and accounting matters.

What are the main responsibilities of the Audit Office?

The main responsibilities of the Audit Office are grouped in the following key result areas.

Providing Data Monitoring and Analysis Services – Collecting, verifying and maintaining financial and other business information from regulated entities. Preparing reports and performing analysis on the data reported.
Providing Accounting Policies and Related Advice – Developing, communicating and interpreting accounting policies for regulated entities. Advising the OEB on accounting, financial, audit and regulatory taxation matters.
Assessing Financial Condition – Monitoring and assessing financial and other information.
Conducting Audit Engagements – Co-ordinating and conducting planned and ad-hoc audits.

Providing Data Monitoring and Analysis Services

On behalf of various users within the OEB, the Audit Office collects the data reported by regulated entities under the OEB's RRR. For the OEB's RRR, click here.

The Audit Office maintains an electronic and paper based filing system that gathers data, generally quarterly and annually, as submitted by the regulated entities and required by the OEB. It is the responsibility of the Audit Office to check and maintain the data on behalf of the OEB. The Audit Office consults with users and stakeholders about the types of data required to meet changing regulatory needs, and periodically reviews the data gathered to ensure it is still useful to require from regulated entities.

Providing Accounting Policies and Related Advice

Developing Accounting Policies

The Audit Office leads the development of the accounting policy framework for use by regulated entities in maintaining their books in accordance with generally accepted accounting principles (GAAP) applicable to regulated entities. This includes developing and maintaining a Uniform System of Accounts (USoA) for use by regulated entities in classifying their financial transactions. For the USoA electricity, click here. For the USoA gas (the last item in the list under the heading Natural Gas), click here.

Accounting policies are communicated to the industry primarily through the USoA, an Accounting Procedures Handbook (for the Accounting Procedures Handbook, click here) and periodic bulletins published on the OEB's website.

The Audit Office consults with stakeholders in developing accounting policy where appropriate and maintains reference handbooks and other documentation for use by regulated entities in performing their accounting functions.

Providing Advisory Services

The Audit Office provides day-to-day advice and guidance to the OEB, regulated entities and other stakeholders. Subject matter includes the use and interpretation of GAAP, the USoA, regulatory taxation, related handbooks and other reference documentation, as well as financial and auditing matters.

Assessing Financial Condition

The Audit Office monitors the financial performance of the electricity and gas sectors in Ontario. The Audit Office does this by analyzing, assessing and interpreting both financial and other performance information provided to the OEB. Information is provided by a number of sources including: regulated entities, consumers and stakeholders. The results of this assessment are used to inform the planning of audit work for the upcoming period.

Conducting Audit Engagements

Developing the Annual Audit Plan

The Audit Office performs an annual risk assessment of the regulated entities to inform the audit planning process. The risk assessment is based on data available from many sources including: information available through the RRR processes, OEB proceedings and other work of the Audit Office. The CRA develops an annual audit plan informed by the risk assessment, and presents it to the OEB for their review.

Engagement Work Performance

The Audit Office uses the annual audit plan as the basis for audit work undertaken by audit staff or by third party auditors retained by the OEB. Professional audit standards are used when performing and reporting engagements. The scope of work is typically built to focus on matters of reliability of reported information, financial or operating performance of an entity and/or compliance with the OEB's legal and regulatory requirements.

Reporting the Results of Engagements

The results of individual engagements are shared in draft, for confirmation of factual accuracy, with the audited entity. The auditor's views are finalized and, where applicable, the report is provided to management of the audited entity for formal response and inclusion of an action plan developed by the entity. The results of engagements are reported to the OEB. Where findings are of a compliance nature, they are referred to the Compliance Office. For more on the Compliance Office, click here.

Do you have questions?

If you are a regulated entity and would like to seek guidance regarding the OEB's RRR or accounting requirements; please contact us through our Market Operations Hotline at (416) 440-7604 or e-mail us at market.operations@oeb.gov.on.ca. Please include the word "Audit" in the subject line of your e-mail.

If you are a consumer and you have questions, please contact us through the OEB's Consumer Relations Centre. To contact us click here.