The audit revealed that social assistance payments went to 1,539 business licencees, with nearly half of those registered as taxi drivers.
The other licencees were registered in a variety of professions including holistic practitioner, burlesque entertainer and dining establishment operator.
The review looked at 30 of the cases, and found that the majority had not reported their businesses to social services.
The report does not say whether any income was generated from the businesses by those collecting welfare during this period.
Toronto and Ontario collectively paid $915 million in social assistance payments to 274,000 people in 2011.
Also on HuffPost