Independent Auditor's Report
Indepedent Auditor’s Report
To the Board of the Alcohol and Gaming Commission of Ontario
Opinion
I have audited the Statement of Revenue and Expenditures of the Alcohol and Gaming Commission of Ontario (the AGCO) for the years ended March 31, 2021 and March 31, 2020, and notes to the financial statement, including a summary of significant accounting policies (together the “financial statement”).
In my opinion, the accompanying financial statement is prepared, in all material respects, in accordance with the basis of accounting described in Note 2 to the financial statement.
Basis for Opinion
I conducted my audit in accordance with Canadian generally accepted auditing standards. My responsibilities under those standards are further described in the Auditor’s Responsibilities for the Audit of the Financial Statement section of my report. I am independent of the AGCO in accordance with the ethical requirements that are relevant to my audit of the financial statement in Canada, and I have fulfilled my other ethical responsibilities in accordance with these requirements. I believe that the audit evidence I have obtained is sufficient and appropriate to provide a basis for my opinion.
Emphasis of Matter — Basis of Accounting
I draw attention to Note 2 to the financial statement, which describes the basis of accounting. The financial statement is prepared to report on the revenue and expenditures of the AGCO. As a result, the financial statement may not be suitable for another purpose. My opinion is not modified in respect of this matter.
Responsibilities of Management and Those Charged with Governance for the Financial Statement
Management is responsible for the preparation of the financial statement in accordance with the basis of accounting described in Note 2 to the financial statement, and for such internal control as management determines is necessary to enable the preparation of a financial statement that is free from material misstatement, whether due to fraud or error.
In preparing the financial statement, management is responsible for assessing the AGCO·V ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the AGCO either intends to cease operations, or has no realistic alternative but to do so.
Those charged with governance are responsible for overseeing the AGCO’s financial reporting process.
Auditor’s Responsbilities for the Audit of the Financial Statement
My objectives are to obtain reasonable assurance about whether the financial statement as a whole is free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes my opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with Canadian generally accepted auditing standards will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of the financial statement.
As part of an audit in accordance with Canadian generally accepted auditing standards, I exercise professional judgment and maintain professional skepticism throughout the audit. I also:
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Identify and assess the risks of material misstatement of the financial statement, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for my opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.
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Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the AGCO’s internal control.
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Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by management.
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Conclude on the appropriateness of management’s us of the going concern basis of accounting and based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the AGCO’s ability to continue as a going concern. If I conclude that a material uncertainty exists, I am required to draw attention in my auditor’s report to the related disclosures in the financial statement or, if such disclosures are inadequate, to modify my opinion. My conclusions are based on the audit evidence obtained up to the date of my auditor’s report. However, future events or conditions may cause the AGCO to cease to continue as a going concern.
I communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that I identify during my audit.
Bonnie Lysyk, MBA, FCPA, FCA, LPA
Auditor General
Toronto, Ontario
July 6, 2021
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