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Regulatory Audit & Accounting
The Regulatory Audit & Accounting unit provides auditing services related to the financial and non-financial performance of regulated entities. The Regulatory Audit & Accounting unit 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.
The main responsibilities of the Regulatory Audit & Accounting unit are grouped in the following key result areas.
Developing Accounting Policies
The Regulatory Audit & Accounting unit 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, click here.
Accounting policies are communicated to the industry primarily through the USoA, an Accounting Procedures Handbook and periodic bulletins published on the OEB's website.
Regulatory Audit & Accounting staff consult 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
Regulatory Audit & Accounting 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
Regulatory Audit & Accounting monitors the financial performance of the electricity and gas sectors in Ontario. This is done 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.
Developing the Annual Audit Plan
The Regulatory Audit & Accounting unit 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 OEB’s Reporting & Record-keeping Requirements (RRR) processes, OEB proceedings and other work of the Regulatory Audit and Accounting unit. 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 Regulatory Audit & Accounting unit 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 require guidance on the OEB's requirements for any application, 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.
If you are a consumer and you have questions, please contact us through the OEB's Consumer Relations Centre.