09/11/2012 02:31 EDT | Updated 11/11/2012 05:12 EST

Nova Scotia auditor general passes on forensic audit of development agency

HALIFAX - Nova Scotia's auditor general says he won't be conducting a forensic audit of the Cumberland Regional Development Authority.

Jacques Lapointe says a provincial ombudsman's report makes a convincing case for an investigation of the economic development agency.

But Lapointe says he's satisfied it can be carried out by the province's internal auditor.

A report released last month by ombudsman Dwight Bishop found questionable accounting practices and a lack of oversight at the authority.

It concluded that record keeping was insufficient and should be examined by the auditor general.

Lapointe says he believes the internal audit group, which is part of the Treasury Board, is independent enough to deal with the report.

Following the report's release, Economic Development Minister Percy Paris said the provincial government would conduct its own audit.