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Government Auditing Services

COMMISSION ON AUDIT Document Code: COA-PAWIM-GAS-01

PROCEDURE Revision No.: 0

GOVERNMENT AUDITING SERVICES Effectivity Date: 29 Dec 2016

Page No.: Page 1 of 17

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1. PURPOSE

1.1 COA Auditors, through provision of Government Auditing Services, play a vital

role in the public sector governance through its oversight, insight and foresight

responsibilities. They help government agencies achieve accountability and

integrity, improve operations and instill confidence among their stakeholders

and the public.

1.2 Among the objectives of Government Auditing Services are to:

1.2.1 Improve and promote fiscal, managerial and programme

accountability in government operations; and

1.2.2 Recommend measures necessary to improve efficiency, economy and

effectiveness of government operations.

1.3 This document describes the procedure for the efficient and effective audit of

government agencies, with regard to:

1.3.1 Planning the audit;

1.3.2 Execution of the audit;

1.3.3 Conclusion and Reporting;

1.3.4 Monitoring of quality control of audit services.

2. SCOPE

This procedure shall apply to the COA-Quality Management System on the provision

of audit services by the following audit clusters in the COA Central Office with audit

groups and audit teams assigned to agencies in the National Capital Region.

2.1 Cluster 1 – Banking and Credit, Corporate Government Sector

2.2 Cluster 6 – Health and Science, National Government Sector

2.3 National Capital Region, Local Government Sector

3. POLICY

In order to provide timely and quality audits to client-government agencies, the audits

are conducted in accordance with the prescribed auditing standards, policies, rules

and regulations.

4. DEFINITION OF TERMS AND ACRONYMS

Refer to GLOSSARY OF TERMS attached as Annex “A” for the definition of terms

used in this Procedure.







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Refer to ACRONYMS attached as Annex “B” for the acronyms used in this Procedure.

5. RESPONSIBILITIES

5.1 Assistant Commissioners of NGS and CGS

4.1.1 Exercise oversight functions over Cluster Directors (CDs) and issue to

CDs General Audit Instructions (GAI) on audit matters, and those that

cut across the audit sector for NGAs/GOCCs, and Regional Directors

(RDs) for SUCs and WDs for the ensuing year not later than October 5

of the current year;

4.1.2 Resolve any policy issues on the audit of NGAs/GOCCs raised by the

AC of LGS and the CDs; and

4.1.3 Furnish the Members of the Commission Proper (CP) copy of GAI and

SAI, and additional instructions issued by the AC/CD.

5.2 Assistant Commissioner of LGS

4.2.1 Exercise oversight functions over RDs and issue GAI to RDs on the

audit of LGUs for the ensuing year not later than October 5 of the

current year;

4.2.2 Resolve any implementation issues/concerns brought to his/her

attention by the RDs including those related to the audit of

NGS/GOCCs;

4.2.3 Bring to the attention of the ACs of NGS and CGS any policy issues

affecting the audit of NGAs/GOCCs that cannot be resolved at his/her

level; and

4.2.4 Furnish the Members of the CP copy of the GAI and SAI, and

additional instructions issued by the AC/RDs.

5.3 Cluster Directors of NGS and/or CGS

4.3.1 Issue the GAI covering critical and significant areas of operation of

agencies under his/her jurisdiction not later than October 15 of the

current year;

4.3.2 Approve the initial SAI and the audit plan for the audit of ensuing year

prepared by the SA taking into consideration the results of performance

assessment of the current year conducted by the SA;







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4.3.3 Disseminate to SA, ARD and RD the approved SAI for the ensuing

year not later than November of the current year;

4.3.4 Initiate the conduct of mid-year assessment not later than July 31, one

to be attended by the RD or the ARD and/or the RSA or ATLs, and the

other by the SA and ATLs of stand-alone agencies, to review and

revise the audit foci and thrusts areas for the year;

4.3.5 Review and approve the final SAI revised by the SA considering the

critical audit issues identified during the conference and disseminate to

the SA, ACD and RD for implementation;

4.3.6 Require the SA to consolidate the quarterly status reports submitted by

the RDs and the ATLs under his/her direct supervision and to prepare

assessment report on the implementation of the SAI;

4.3.7 For agencies under UAA, evaluate the progress of implementation of

the SAI including consistency and uniformity of audit actions taken by

the audit teams using the assessment report of the SA as input; Submit

the evaluation report to the AC for NGS and CGS, together with copy

of instructions issued to the SA and RD or any recommended action to

be taken by the AC on any policy issues raised by the SA;

4.3.8 Evaluate the revised consolidated matrix of audit observations,

recommendations, comments and rejoinder (matrix) submitted by the

ACD and initiate the conduct of workshops to discuss and consolidate

audit findings as input in the preparation of CAAR, as needed;

4.3.9 Review and transmit on time AARs and CAARs of agencies with due

consideration to the areas covered in the SAI; and

4.3.10 Perform such other duties, functions and responsibilities for the

efficient and effective conduct of audit.

5.4 Regional Directors

4.4.1 Issue the SAI for LGUs and implement the SAI issued by the

NGS/CGS and any additional instructions/guidelines received from the

AC/CD from time to time and ensure that the requirements prescribed

therein are addressed by the RATs;

4.4.2 Ensure equitable distribution of workload to the different RATs and

supervise the conduct of audit;

4.4.3 Assess the quarterly status reports submitted by the RSA on the

implementation of SAI, and act accordingly on any audit issues raised







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therein; Submit to the CD, thru the AC, LGS, the duly assessed and

evaluated quarterly status report and bring to the attention of the AC,

LGS any concern in the field that cannot be resolved at the level of the

RD within the 15th day of the month following the end of each quarter;

4.4.4 Review and transmit to the agency head RCML within the set deadline;

4.4.5 Review the consolidated matrix prepared by the SA/RSA taking into

account the SAI and submit to CD for consideration in the preparation

of AAR/CAAR;

4.4.6 For LGUs, SUCs and WDs, review and transmit on time AARs of

agencies with due consideration to the areas covered in the SAI; and



5.5 Assistant Cluster Directors

4.5.1 Assist the CD in the preparation of GAI, review of SAI and conduct of

mid-year assessment;

4.5.2 Supervise the implementation of SAI and any additional

instructions/guidelines issued by the AC/CD from time to time and the

conduct of audit;

4.5.3 Review the assessment report prepared by the SA and forward to the

CD for appropriate action; Ensure that the areas covered in the SAI are

addressed;

4.5.4 Review the Matrix of observation and recommend to the CD the need

to conduct workshop to discuss and consolidate audit findings as input

in the preparation of CAAR;

4.5.5 Review AAR and CAAR before forwarding to the CD for final review;

and



5.6 Assistant Regional Directors

4.6.1 Assist the RD in the implementation of SAI and any additional

instructions/guidelines received from the AC/CD from time to time and

in the supervision of the conduct of audit;







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4.6.2 Submit to the RD duly reviewed quarterly status reports on the

implementation of SAI, including actions taken on audit issues raised

by the RSAs and issues/concern in the field that requires the

immediate action of the RD;

4.6.3 Review the RCML submitted by the RSA and submit to RD for review

and transmittal to the agency head;

4.6.4 Evaluate the consolidated Matrix prepared by the RSA and submit to

the RD for review;

4.6.5 Review AAR of LGUS, SUCs and WDs before forwarding to the RD for

final review; and



5.7 Supervising Auditors

4.7.1 Draft initial SAI upon receipt of GAI for the ensuing year taking into

consideration the results of risk assessment not later than November

15 of the current year and submit to CD for review and approval;

4.7.2 Assist the CD/ACD in the preparation and conduct of mid-year

assessment to be conducted not later than July 31 to review and revise

the initial SAI;

4.7.3 Revise the SAI taking into consideration the results of mid-year

assessment and submit to the CD/ACD within five days from the

completion of the planning conference for review and approval;

4.7.4 Implement the final SAI and additional instructions/guidelines issued by

the AC/CD from time to time and supervise the conduct of audit of audit

teams within the NCR;

4.7.5 For those covered by UAA, prepare and submit to CD quarterly

assessment report on the implementation of SAI and uniformity and

consistency of audit actions by the audit teams nationwide within five

days upon receipt of the quarterly status reports submitted by the ATLs

and RDs; Identify issues/areas of least concern that can be

recommended for deletion in the next planning exercise and audit

issues requiring immediate attention by the CD;

4.7.6 Review working papers submitted by the audit teams within NCR and

issue AOM, NC, ND, and NS, jointly with the ATL of Audit Teams

assigned to NGAs/GOCCs located within NCR;







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4.7.7 Review ML/SAOR prepared by the ATLs giving consideration to the

SAI and transmit ML/SAOR duly signed by the ATLs to the

agency/branch head within the required deadline;

4.7.8 Review AAR prepared by the ATLs under his/her direct supervision

taking into consideration the SAI and forward to CD for review; Sign the

Independent Auditor’s Report (IAR);

4.7.9 Prepare CAAR using the released AAR/MLs and the consolidated

matrix submitted by the RDs and the results of workshop as inputs and

submit to CD/ACD for review; and

4.7.10 Perform such other duties, functions, and responsibilities for the


5.8 Regional Supervising Auditors

4.8.1 Implement the SAI and additional instructions/guidelines received from

the RD from time to time and supervise the conduct of audit by the

RATs to ensure the timely release of quality RCML/ML/ Summary of

Audit Observations and Recommendation (SAOR) to the head of the

agency;

4.8.2 Submit quarterly status report to the RD/ARD, on the progress of

implementation of the SAI, and issues that needed the immediate

action of the RD/ARD using the template attached as Annex A not later

than the 10th day of the month following the end of each quarter.

Include in the template all focus areas defined in the SAI and additional

audit instructions issued by the AC/CD with or without any noted

deficiencies;

4.8.3 Review working papers submitted by the audit teams in the region and

issue AOM, NC, ND, and NS, jointly with the ATL;

4.8.4 Review RCML/ML/SAOR giving consideration to the SAI and transmit

ML/SAOR duly signed by the ATLs to the agency head within the

required deadline. Submit duly signed RCML to the RD for review and

transmission to the agency head;

4.8.5 Consolidate the findings/recommendations/comments/rejoinder

included in the transmitted RCML/ML/SAOR by department/agency

and submit consolidated matrix to the RD/ARD within the deadline set

in the audit instructions together with the copy of transmitted

RCML/ML/SAOR; and







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efficient and effective conduct of audit, including effective

implementation of the UAA.

5.9 Audit Team Leaders

4.9.1 Conduct complete audit of areas/accounts/programs identified in the

SAI and any additional instructions/guidelines issued by the

AC/CD/RD, and/or deemed appropriate by the Audit Teams;

4.9.2 Issue AOMs, NS and NDs on transactions with deficiencies jointly with

the SA/RSA;

4.9.3 Review working papers of the ATMs, and file and organize them in

accordance with the guidelines of the Commission;

4.9.4 Submit to the SA/RSA quarterly status report on the implementation of

SAI using the template attached as Annex B on the 3rd day of the

month following the end of the quarter. Include in the template all focus

areas and audit procedures undertaken with or without any noted

deficiencies;

4.9.5 Prepare AAR/RCML/ML/SAOR containing the areas required in the

SAI and other additional instructions issued by the AC/CD/RD and

submit to SA/RSA for review. Sign ML/SAOR upon review by the

SA/RSA; and


efficient and effective conduct of audit, including effective

implementation of UAA.

5.10 COA Auditees

4.10.1 Submit the vouchers and other documents for audit within the

prescribed period;

4.10.2 Submit the year-end financial statements and supporting documents on

or before the prescribed period;

4.10.3 Submit Agency Action Plan and Status of Implementation (AAPSI) of

audit recommendations within 60 calendar days from receipt of the

AAR/CAAR; and

4.10.4 Implement audit recommendations within the period stated in the

AAPSI.







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6. PROCEDURE

Procedure

Flow (Key

Activities)

Sub-steps Responsible Documented

Information

5.1

5.1.1 Sector Planning

5.1.2 Cluster / Regional

Planning

5.1.3 Agency Audit

Planning and Risk

Assessment

5.1.3.1 Agency Audit

Planning

5.1.3.2 Understand the

Agency

5.1.3.3 Identify Significant

Agency Risk

5.1.3.4 Understand and

Assess Agency-

Level Controls

Understand the

Process pertaining

to significant

processes where

significant agency

risks reside by

conducting Audit

AC

CD/RD

SA/RSA and

ATLs

General Audit

Instructions

General Audit

Instructions

Special Audit

Instructions

Audit Group

Action Plan

(AGAP)

Agency Audit

Workstep

Understanding the

Agency Template

Agency Risk

Identification Matrix

Agency-Level

Controls Checklist.

Process-Risk-

Control (PRC)

Matrix

Audit Risk

Assessment and

Planning Tool

Planning the

Audit







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Risk Assessment

and Planning

5.2

5.2.1 Design Audit Tests

5.2.2 Execute Audit Tests

5.2.3 Evaluate Audit

Results

5.2.4 Communicate Audit

Results

Audit Teams

Audit Test

Summary

Audit Programs

Audit Working

Papers

Audit Working

Papers

Audit

Observations

Memorandum

Notice of

Suspension

Notice of

Disallowance

Notice of Charge

5.3

5.3.1 Summarize audit

results

Conduct exit

conference

5.3.2 Prepare/Draft audit

report

5.3.3 Perform overall audit

review

5.3.4 Issue Audit Report

Audit Teams Summary of Audit

Observations and

Recommendation

s (SAOR)

Minutes of Exit

Conference

Draft Audit Report

AAR/CAAR/ML

Review Checklist

SA/RSA Review

Notes

Signed and

Released

Audit Report

Signed and

Execution of

Audit

Conclusion

and

Reporting







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5.3.5 Wrap up and archive

the annual audit

process

5.3.6 Follow-up Agency

Action Plan

Released

Transmittal

Letter

Working Papers

File

Agency

Action Plan and

Status of

Implementation

Action Plan

Monitoring Tool

5.4

5.4.1 Conduct mid-year

assessment.

5.4.2 Evaluate the results

of audit and conduct

workshops to

discuss these with

the results as input

in the preparation of

the AAR/CAAR.

5.4.3 Review draft audit

report prior to

transmittal to the

agencies.

5.4.4 Conduct audit

debriefing, with the

results

ACD/ARD

CD/RD

Report on the

results of

assessment

Minutes

Report on the

results of the

workshop

ACD/CD Review

Notes / ARD/RD

Review Notes

Quality Inspection

Tool

Minutes of

Debriefing

Monitoring

Quality

Control on

Audit

Services







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6 PROCEDURE DETAILS

6.1 Planning the Audit

6.1.1 Sectoral Planning –

6.1.1.1 The Assistant Commissioners of NGS and CGS conduct at least

one sectoral planning, with their respective CDs and ACDs to

discuss the audit foci on matters that cut across the sectors.

6.1.1.2 They also conduct one nationwide planning with the RDs and the

CDs concerned to discuss all policy issues/concerns on NGAs and

GOCCs encountered by the RDs and not resolved by the ACs of the

NGS for NGAS and CGS for GOCCs.

6.1.1.3 The Assistant Commissioner of LGS conducts sectoral planning,

with the RDs on the audit foci and other matters concerning the

audit of government agencies under the audit jurisdiction of the COA

Regional Offices including National Capital Region.

6.1.1.4 After the conduct of sectoral planning, the Assistant Commissioner

of NGS, CGS and LGS issue the necessary General Audit

Instructions indicating the audit foci and other related instructions.

6.1.2 Cluster / Regional Planning –

6.1.2.1 The Cluster Director –

6.1.2.1.1 identifies the critical and significant areas of operations

contained in the GAI which are specific to his/her Cluster

and conducts a cluster planning with his/her SAs, RSAs

and ATLs to discuss these and other audit foci and thrust

areas for the year; and

6.1.2.1.2 after cluster planning, issues GAI to his/her SAs, RSAs and

ATLs.

6.1.2.2 Based on the GAI issued by the AC of LGS, the Regional Director

issues SAIs relative to the audit of NGAs and GOCCs, as well as

Stand Alone Agencies located in the region.

6.1.3 Agency Audit Planning and Risk Assessment

6.1.3.1 Agency Audit Planning –







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6.1.3.1.1 Upon receipt of the GAI, the SA conducts agency audit

planning with his/her ATLs or RSAs if agencies being

audited are covered under UAA. After the planning, he/she

prepares SAI not later than November 15 of the current year

and submit to the CD for review and approval;

6.1.3.1.2 The ATL prepares Agency Audit Workstep for each agency

showing phase by phase detail of the audit activities, the

estimated time to complete each phase and the ATM

assigned to complete each activity.

6.1.3.2 Understand the Agency

The SA/RSA and Audit Team gain/update a thorough understanding

of the agency on how it operates, and how key environmental factors

affect the goals, objectives and strategies, which provide the basis for

making a comprehensive risk evaluation whether the risk factors are

inherent risks (risks that may give rise to risks of material

misstatements or risk of not achieving the objectives of the agency’s

PAPs.

6.1.3.3 Identify Significant Agency Risks

Based on the UTA Template and other sources, the Audit Team

identifies agency risks, and document these in the AgRI Matrix:

6.1.3.3.1 Identified Agency Risks

6.1.3.3.2 Basis of Selection

6.1.3.3.3 Risk Rating (Impact, Likelihood and Overall Rating)

6.1.3.3.4 Risk Location

6.1.3.3.5 Initial Audit Response

6.1.3.3.6 Remarks

After all the risks have been identified, the Audit Team prioritizes

those risks which are significant based on the risk rating provided.

The risks identified as significant are the focus for the audit. The

identified significant agency processes affected by the significant

agency risks are the subject of Understanding the Process.

6.1.3.4 Understand and Assess Agency-Level Controls

The Audit Team obtains understanding of agency-level controls

through inquiry and observations due to the nature of agency-level

controls and because of audit evidence may not exist or be available

in documentary form. Understanding the agency-level controls







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assists the Audit Team in identifying and assessing risks, as well as in

determining the most appropriate audit strategy.

6.1.3.5 Understand the Process pertaining to significant processes where

significant agency risks reside

The Audit Team understands the significant processes where the

significant agency risks identified in the AgRI Matrix reside.

Understanding these processes assists the Audit Team in:

6.1.3.5.1 Performing risk assessments for each relevant assertion for

each significant account and disclosure; and

6.1.3.5.2 Customizing the nature, timing and extent of the audit

procedures to address the identified risks.

Understanding the process involves the following steps:

i. Identify the critical path of the processes;

ii. Identify process risks which refer to the points where risks

of material misstatement or risks to the Agency’s PAP’s

objectives due to error or fraud;

iii. Identify impact; and

iv. Identify existing controls.

6.1.3.6 Conduct Audit Risk Assessment and Planning

6.1.3.6.1 The Audit Team evaluates and quantify risks in the audit

based on the information obtained in the UTA, ALC and

PRC. The resulting assessments provide the basis for the

prioritization in the audit.

6.1.3.6.2 The Audit Team performs the following:

Assess risk for each relevant assertion for each

significant account in conducting financial and

compliance audit risk assessment;

Evaluate each of the Agency’s PAPs taking into

consideration the following factors In conducting

assessment for performance audit, namely:

quantitative factors such as budget; and qualitative

factors such as risks to good management,

significance, visibility and previous audit coverage.







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6.1.3.6.3 The Audit Team determines audit scope and timing; and

6.1.3.6.4 The Audit Team determines need for specialized skills.

6.2 Execution of Audit

6.2.1 Design Audit Tests

6.2.1.1 The Audit Team prepares Audit Test Summary which lists the audit

procedures to obtain sufficient appropriate audit evidence.

6.2.1.2 The Audit Team performs the following procedures:

6.2.1.2.1 Design tests of controls; and

6.2.1.2.2 Design substantive tests for significant accounts

6.2.2 Execute Audit Tests

6.2.2.1 The Audit Team executes audit tests throughout the audit period in

accordance with the nature, extent and timing of the audit

procedures, and identifies findings and misstatements.

6.2.3 Evaluate Audit Results

6.2.3.1 If the Audit Team has identified findings or misstatements, it

determines if this is an incident of suspected fraud or represents

non-compliance with applicable laws, rules and regulations.

6.2.3.2 The Audit Team assesses whether it has obtained sufficient

appropriate audit evidence for each significant account, disclosure

and assertions.

6.2.4 Communicate Audit Results

6.2.4.1 The Audit Team discusses each audit finding with the appropriate

level of agency management to confirm that the understanding of

the nature and cause of the audit finding is factually correct, and

what actions the agency can take to prevent and error’s occurrence.

6.2.4.2 If the agency disagrees that there is an audit finding, the Audit Team

asks the agency to support its position by providing additional audit

evidence.







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6.3 Conclusion and Reporting

6.3.1 Summarize audit results

The Audit Team prepares summary audit results and recommendations and

discusses these with the agency through an exit conference.

6.3.2 Prepare/Draft Audit Report

The Audit Team prepares an audit report on the overall results of audit in

accordance with the existing guidelines.

6.3.3 Perform overall audit review

6.3.3.1 The SA/RSA prior to the submission of audit reports to the CD/RD

conducts a review of the outputs prepared by the Audit Team

Leaders.

6.3.3.2 After the review, the SA/RSA submits the draft audit report to the

CD/RD for another level of review.

6.3.4 Issue (Transmit) Audit Report

6.3.4.1 The ACD/ARD and/or CD/RD reviews the audit report and transmits

the same to the agency management.

6.3.4.2 The CD/RD provides copies of the audit reports to the COA Website

for publication within the prescribed period.

6.3.5 Wrap up and Archive the annual audit process

The Audit Team wraps up the audit with the archiving of the electronic and hard

copies of the working papers/documentation of the audit results.

6.3.6 Follow up Agency Action Plan

a. The CD/RD requires the Agency Management to accomplish the

Agency Action Plan and Status of Implementation within 60 days from

receipt of the audit report.

b. The SA/RSA and the ATL monitors the status of implementation of

audit recommendations by the agencies using the Action Plan

Monitoring Tool.







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6.4 Monitoring Quality Control on Audit Services

6.4.1 The CD of NGS and CGS initiates the conduct of mid-year assessment

not later than July 31 to be attended by the RD or the ARD and/or the

RSA/ATLs to review and revise the audit foci and thrust areas for the

year.

6.4.2 The Regional Director reviews the consolidated matrix prepared by the

RSA taking into account the SAI and submit to CD for consideration in

the preparation of the CAAR.

The CD evaluates the consolidated matrix of audit observations,

recommendations, comments and rejoinders submitted by the ACD and

initiate the conduct of workshops to discuss and consolidate audit

findings as input in the preparation of the CAAR.

6.4.3 The CD/RD reviews the AARs and CAARs of agencies within the

deadline set.

6.4.4 The CD/RD and/or ACD/ARD conduct debriefing of the audit teams to

discuss issues and problems encountered in all phases of the just

completed audit engagements. The results of debriefing are used as

input to the next audit planning or to the enhancement of COA policies

and procedures.

7 FORMS AND TEMPLATES

7.1 Planning the Audit

Audit Group Action Plan (Annex “A.1”)

RSA Audit Plan (Annex “A.2”)

Agency Audit Workstep (Annex “A.3”)

Understanding the Agency Template (Annex “A.4”)

Agency Risk Identification Matrix (Annex “A.5”)

Agency-Level Controls Checklist (Annex “A.6”)

Process-Risk-Control (PRC) Matrix (Annex “A.7”)

Audit Risk Assessment and Planning Tool (Annex “A.8”)

7.2 Execution of the Audit

Audit Test Summary (Annex “B.1”)

Audit Programs (Annex “B.2”)

Audit Observations Memorandum (Annex “B.3”)

Notice of Suspension (Annex “B.4”)

Notice of Disallowance (Annex “B.5”)

Notice of Charge (Annex “B.6”)

Summary of Audit Observations and Recommendations (Annex “B.7”)







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7.3 Conclusion and Reporting

AAR/CAAR Review Checklist (Annex “C.1”)

Agency Action Plan and Status of Implementation (Annex “C.2”)

Action Plan Monitoring Tool (Annex “C.3”)

7.4 Monitoring Quality Control on Audit Services

Quality Inspection Tool (Annex “D”)

COMMISSION ON AUDIT Document Code: COA-PAWIM-GAS-Form-01_AGAP

ANNEX Revision No.: 0

GOVERNMENT AUDITING SERVICES

Effectivity Date: 29 Dec 2016


Annex “A.1”

(Name of Sector)

(Name of Cluster/Office)

Audit Group

AUDIT GROUP ACTION PLAN (AGAP)

For the Period ___________________

PROJECT/

ACTIVITIES

REF NO. PERSON

RESPONSIBLE

OUTPUT(S) 3RD QRTR

OF 2016

4TH QRTR

OF 2016

1ST QRTR

OF 2017

2nd QRTR

OF 2017

REMARKS

Submitted by:

Recommending Approval:

Approved by:

Assistant Director

Supervising Auditor Assistant Director Cluster / Regional Director

COMMISSION ON AUDIT Document Code: COA-PAWIM-GAS-Form-02_RSAAP





ANNEX “A.2”

“(Name of Region)

RSA AUDIT PLAN

For the Period ____________________

Auditee :

Audit period :

Prepared by : (Name of Regional Supervising Auditor) Date Prepared:

Reviewed by : (Name of Assistant Regional Director) Date Reviewed:

Approved by : (Name of Regional Director) Date Approved:

NO. RESPONSIBILITY AREA WP REF. OUTPUTS

DATE

2016 2017

J A S O N D J F M A M J

COMMISSION ON AUDIT Document Code: COA-PAWIM-GAS-Form-03_AAW





ANNEX “A.3”

AGENCY AUDIT WORKSTEP

Auditee:

Audit Period:

Prepared By: Date:

Reviewed By: Date Reviewed:

Approved By: Date Approved:

Activity WP

Ref.

Person

Responsible Output Target Date to Accomplish

Remarks Year J F M A M J J A S O N D

COMMISSION ON AUDIT Document Code: COA-PAWIM-GAS-Form-04_UTA





ANNEX “A.4”

UNDERSTANDING THE AGENCY

AGENCY PROFILE

A. Mandate

B. Function/Processes/Operations






C. Structure

Attach Organizational Chart

D. Management

E. Objectives and Strategies

OBJECTIVES STRATEGIES






F. Stakeholders

G. Key Environmental Factors

Political Environment –

Social Environment –

Legal and Regulatory Environment –

Technological Environment –

H. Key Performance Indicators






I. Existing Accounting Policy

J. Previous Audit Findings

K. Recent Development/News

RECENT DEVELOPMENTS/ NEWS IMPACT ON THE AGENCY






L. Analytical Review

Financial

Performance

FINANCIAL STATEMENT

ACCOUNTS CURRENT PRIOR

VARIANCE REMARKS

AMOUNT %

PERFORMANCE INDICATORS ACTUAL BUDGET/ TARGET VARIANCE

REMARKS AMOUNT %






M. Program Review

a. Program/Project Details

Program/Project: ________________________________________________

Objectives: ________________________________________________

Total Budget: ________________________________________________

Duration: ________________________________________________

Project Overview: ________________________________________________

N. UTA Summary

UTA REF. IDENTIFIED AGENCY RISK

IMPACT ON THE AGENCY RISK TITLE RISK STATEMENT

FINANCIAL STATEMENT

ACCOUNTS CURRENT PRIOR

VARIANCE REMARKS

AMOUNT %

COMMISSION ON AUDIT Document Code: COA-PAWIM-GAS-Form-05_AgRIM





ANNEX “A.5”

AGENCY RISK IDENTIFICATION MATRIX

Risk Ref. No.

Agency Risk Title/

Risk Statement

Risk Rating Risk Location Initial Audit Response Impact Likelihood

Overall Rating Processes/PAPs

Office

HIGH MODERATE LOW

JUSTIFICATION

HIGH MODERATE LOW

JUSTIFICATION

HIGH MODERATE LOW

FINANCIAL COMPLIANCE PERFORMANCE FRA

HIGH MODERATE LOW

JUSTIFICATION

HIGH MODERATE LOW

JUSTIFICATION

HIGH MODERATE LOW


Agency : Prepared by : Date :

Audit Period :

Reviewed by :

Date

:

Office :

Approved by :

Date

:

Risk Ref. No.

Agency Risk Title/

Risk Statement



Office

HIGH MODERATE LOW

JUSTIFICATION

HIGH MODERATE LOW

JUSTIFICATION

HIGH MODERATE LOW


HIGH MODERATE LOW

JUSTIFICATION

HIGH MODERATE LOW

JUSTIFICATION

HIGH MODERATE LOW


HIGH MODERATE LOW

JUSTIFICATION

HIGH MODERATE LOW

JUSTIFICATION

HIGH MODERATE LOW


Risk Ref. No.

Agency Risk Title/

Risk Statement



Office

HIGH MODERATE LOW

JUSTIFICATION

HIGH MODERATE LOW

JUSTIFICATION

.

HIGH MODERATE LOW


HIGH MODERATE LOW

JUSTIFICATION

HIGH MODERATE LOW

JUSTIFICATION

.

HIGH MODERATE LOW


COMMISSION ON AUDIT Document Code: COA-PAWIM-GAS- Form-06_ALCC




ANNEX “A.6”

AGENCY-LEVEL CONTROLS CHECKLIST

Agency: Prepared:

Date

Audit Period: Reviewed:

Date

Date

ALLC Probing Questions

I. Control Environment

OBJECTIVE: To determine whether there is a foundation for the entire internal

control system that provides the discipline and structure as well as the climate that

influence the overall quality of internal control in terms of:

o Integrity, Ethical Values and behavior of executives

o Agency management’s commitment to competence

o Participation in governance and oversight by those charge with governance

o Organizational Structure and Assignment of Authority and Responsibility

o Human Resource Policies and Practices

Internal Control Component Yes No NA Remarks

Integrity, Ethical Values, and behavior of key executives

The agency has a code of conduct or

equivalent policy that is communicated

and monitored.

The agency’s culture emphasizes the

importance of integrity and ethical

behavior. Senior management holds

itself to the highest standards and leads

by example.

The agency’s communications reinforce

a consistent message regarding policies

and culture.

Agency management takes appropriate

action in response to departures from

approved policies and procedures or the

code of conduct.

There are appropriate policies for such

matters as conflicts of interest, and






security practices that are adequately

communicated throughout the agency.

Agency management maintains,

monitors and appropriately responds to a

fraud hotline.

The agency has a whistleblower policy

and related whistleblower or ethics

hotline, which are appropriately

communicated throughout the agency,

and include procedures for handling

complaints and for accepting confidential

submissions of concerns about

questionable transactions.

Agency management’s control

consciousness and operating style are

(indicate the appropriate operating style).

Agency management gives appropriate

attention to internal control, including

information technology controls.

Agency management corrects identified

internal control deficiencies on a timely

manner.

Agency management’s tends to be

conservative with respect to selecting

accounting principles and determining

accounting estimates.

Agency management consults with the

auditor on significant matters relating to

accounting and financial reporting

issues.

Initial Assessment:

Effective

Ineffective

Reason:

Agency management’s commitment to competence

The agency personnel have the

competence and training needed to deal

with the nature and complexity of the

agency’s operations.

Agency management has other

processes in place for handling

complaints about agency operational






issues.

Initial Assessment:

Effective

Ineffective

Reason:

Participation in governance and oversight by those charge with governance

Those charged with governance provide

effective oversight of the agency’s

operations.

There is an open line of communication

among those charged with governance

and auditors, and the nature and

frequency of communication is

appropriate given the size and

complexity of the agency.

Those charged with governance have

sufficient knowledge, experience and

time to perform their role effectively.

Those charged with governance are

appropriately independent of agency

management given the size and

complexity of the agency.

Initial Assessment:

Effective

Ineffective

Reason:

The organizational structure and assignment of authority and responsibility

The agency organizational structure is

appropriate given the nature, size and

complexity of the agency

Agency management engages in

communications so that members of

personnel understand the agency’s

objectives, their role in relation to these

objectives, and how they are held

accountable for the achievement of

these objectives.

There are appropriate methods for

establishing authority, responsibility and

lines of reporting.

There are written job descriptions,

reference manuals and other

communications to inform personnel of






their duties.

Initial Assessment:

Effective

Ineffective

Reason:

Human resource policies and practices

The agency has adequate standards and

procedures for hiring, training,

motivating, evaluating, promoting,

compensating, transferring, or

terminating personnel

Job performance is periodically

evaluated and reviewed with each

employee.

Initial Assessment:

Effective

Ineffective

Reason:

II. Risk Assessment

OBJECTIVE: To obtain sufficient knowledge of the BCDA’s process for identifying,

analyzing and managing risks.


Agency objectives are established,

communicated, and monitored. Key

elements of the agency’s strategic plan

are communicated throughout the

agency so all employees have a basic

understanding of the agency’s overall

strategy.

A process is in place to periodically

review and update agency-wide

strategic plans. The strategic plan is

reviewed and approved by the agency’s

Board of Directors.

The agency-wide strategic plan

includes IT or there is a separate IT

strategic plan that addresses the

technology needs of the agency to

effectively and efficiently meet its

strategic plan.

There is an adequate mechanism for






identifying agency risks, including those

resulting from:

— Implementation of government

objectives, plans and strategies

— Significant changes in the agency’s

processes

— Privacy and data protection

compliance requirements

— Other changes in the operations,

economic, and regulatory

environment

The internal audit (or another group

within the company) performs a

periodic (at least annual) risk

assessment. Senior management

reviews the risk assessment and

considers actions to mitigate the

significant risks identified?

Management considers how much risk

it is willing to accept when setting

strategic direction or entering new

markets, and does it strive to maintain

risk within those levels.

The Board of Directors and/or the Audit

Committee oversee and monitor the

risk assessment process and take

action to address the significant risks

identified.

There are groups or individuals who are

responsible for anticipating or

identifying changes with possible

significant effects on the agency.

Processes are in place to inform

appropriate levels of management

about changes with possible significant

effects on the agency.

Budgets/forecasts are updated during

the year to reflect changing conditions.

Periodic reviews are performed or other

processes in place to, among other

things, anticipate and identify routine

events or activities that may affect the

agency’s ability to achieve its objectives






and address them.

Management reports to the Board of

Directors and/or the Audit Committee

on changes that may have a significant

effect on the agency.

The Board of Directors and/or the Audit

Committee review and approve

significant changes in the entity’s

accounting practices.

There are processes to ensure the

accounting department is made aware

of changes in the operating

environment so they can review the

changes and determine what, if any,

effect the change may have on the

agency’s accounting practices.

There are channels of communication

between the accounting department

and/or individual(s) in charge of

monitoring regulatory rules so the

accounting department is aware of

regulatory changes that could affect the

agency’s accounting practices.

Initial Assessment:

Effective

Ineffective

Reason:

III. Control Activities

OBJECTIVE: To obtain sufficient knowledge of the policies and procedures

established to address the risks that may misstate the balances of the accounts in

the financial statements and the amounts in the budgetary reports and financial

performance reports.


Are accounting and closing practices

followed consistently at interim dates (e.g.

quarterly, monthly) throughout the year?

Is there appropriate involvement by

management in reviewing significant

accounting estimates and support for

significant unusual transactions and non-






standard journal entries?

Is there timely and appropriate

documentation for transactions?

Does the agency review its policies and

procedures periodically to determine if

they continue to be appropriate for the

agency’s activities?

Do members of management have

ownership of the policies and procedures?

Does the ownership include ensuring the

policies and procedures are appropriate

for the agency’s activities.

Is there a budgetary system?

Does management review key

performance indicators (e.g. budget, profit,

financial goals, operating goals) regularly

(e.g., monthly, quarterly) and identify

significant variances?

Does management then investigate the

significant variances and is appropriate

corrective action taken?

Are variances in planned performance

communicated and discussed with the

Board of Directors and/or Audit Committee

at least quarterly?

Are financial statements submitted to

operating management? Are they

accompanied by analytical comments?

Is there an appropriate segregation of

incompatible activities (e.g. separation of

accounting for and access to assets, IT

operations function separate from systems

and programming, database

administration function separate from

application programming and systems

programming?

Are organizational charts reviewed to

ensure proper segregation of duties exist?

Are appropriate approvals from

management required prior to allowing an

individual access to specific applications

and databases?

Are IT personnel prohibited from having






incompatible responsibilities or duties in

user department?

Are there processes to periodically (e.g.

quarterly, semi-annually) review system

privileges and access controls to the

different applications and databases within

the IT infrastructure to determine if system

privileges and access controls are

appropriate?

Has management established procedures

to periodically reconcile physical assets

(e.g. cash, inventories, property and

equipment) with related accounting

records?

Are physical inventories/cycle counts

taken on a periodic basis and the

perpetual inventory system adjusted

accordingly? Are significant or recurring

adjustments investigated to determine the

reason for the adjustment and are

appropriate actions taken to address the

reasons for the adjustments?

Has management established procedures

to prevent unauthorized access to, or

destruction of, documents, records

(including computer programs and data

files), and assets?

Is data processing access to non-data

processing assets restricted (e.g. blank

checks)?

Are access security software, operating

system software used to control both

centralized and decentralized access to:

o Data

o Functional capabilities of programs

(e.g., execute, update, modify

parameters, read only)?

Is physical security over information

technology assets (both IT department

and users) reasonable given the nature of

the agency’s operations?

Is critical computer data backed up daily

and stored off-site?






Are controls in place over dial-up access

to the agency’s computer resources (e.g.

firewalls; centralized directories to store

and manage user identities and resource

privileges; automated policy-based

request, approval, and fulfillment process

for enterprise access)?

Is there a dedicated security officer

function that monitors IT processing

activities and are there periodic reports to

the Board of Directors and/or audit

committee on the current state of IT

security at the agency?

Are there systems to monitor and respond

to potential interruptions in agency

operations due to incidents stemming from

malicious intrusions, and to update

security protocols to prevent them? Are

security violations and other incidents

automatically logged and reviewed?

Does the agency conducts periodic

reviews/audits of IT security? If yes, are

the results of the review/audit reported to

the Board of Directors and/or Audit

Committee?

Initial Assessment:

Effective

Ineffective

Reason:

IV. Information and Communication

OBJECTIVE: To determine whether relevant, complete and correct external or

internal information are communicated timely to those responsible in the attainment

of the objectives of the BCDA.


Information

The agency is able to prepare accurate

and timely financial reports, including

interim reports.

The board of directors and

management receive sufficient and

timely information to allow them to fulfill

their responsibilities.






Management’s objectives in terms of

budget, profit, and other financial and

operating goals are defined and

measurable. Actual results are

measured against these objectives.

There is a high level of user satisfaction

with information systems processing,

including reliability and timeliness of

reports.

There is a sufficient level of

coordination between the accounting

and information systems processing

functions/departments.

There are appropriate policies for

developing and modifying accounting

systems and controls (including

changes to and use of computer

programs and/or data files).

Management’s efforts to develop or

revise information systems (including

accounting systems) are responsive to

its strategic plans.

There are significant applications or

transactions that are executed

/processed by service organizations.

Management has documented the

relevant controls at the service

organization, the company, or both that

mitigate the risk of errors. There are

policies for periodic monitoring of

controls either at the service

organization or the company and taking

appropriate action to mitigate potential

new risks.

The board of directors or audit

committee are involved in monitoring

information systems projects and

resource priorities.

The IT organization chart clearly

reflects areas of responsibility and lines

of reporting and communication.

There are defined responsibilities for

individuals responsible for






implementing, documenting, testing and

approving changes to computer

programs that are purchased or

developed by information systems

personnel or users.

Systems conversions are well

controlled (e.g., completed pursuant to

written procedures or plans).

Financial management ensures and

monitors user involvement in the

development of programs, including the

design of internal control checks and

balances.

There is a high degree of cooperation

and interaction between users and the

IT department (e.g., procedures to

ensure ongoing monitoring by the IT

department of user satisfaction with IT

processing and policies for the

development, modification, and use of

programs and data files).

Application programs and data files are

backed-up regularly.

There is a current disaster recovery

plan for the significant components of

the IT infrastructure.

There is a business continuity plan that

incorporates the disaster recovery plan

and end-user department needs for

timely recovery of critical business

functions, systems, processes and

data.

The disaster recovery and business

continuity plans are tested periodically

(at least annually).

The disaster recovery and business

continuity plans are updated for

changing conditions.

Initial Assessment:

Effective

Ineffective

Reason:

Communication






Lines of authority and responsibility

(including lines of reporting) within the

company are clearly defined and

communicated.

There are written job descriptions and

reference manuals that describe the

duties of personnel.

Policies and procedures are

established for and communicated to

personnel at decentralized locations

(including regional operations).

There is a training/orientation for new

employees, or employees when starting

a new position, to discuss the nature

and scope of their duties and

responsibilities. Such

training/orientation includes a

discussion of specific internal controls

they are responsible for.

There is a process for employees to

communicate improprieties. The

process is well communicated

throughout the agency. The process

allows for anonymity for individuals who

report possible improprieties. There is a

process for reporting improprieties, and

actions taken to address them, to

senior management, the board of

directors, or the audit committee.

All reported potential improprieties are

reviewed, investigated, and resolved in

a timely manner?

Employees believe they have adequate

information to complete their job

responsibilities.

There is a process to quickly

disseminate critical information

throughout the agency when

necessary.

There is a process for tracking

communications from customers,

vendors, regulators, and other external

parties?






Ownership is assigned to a member of

management to help ensure the agency

respond appropriately, timely, and

accurately to communications from

customers, vendors, regulators, and

other external parties.

Initial Assessment:

Effective

Ineffective

Reason:

V. Monitoring

OBJECTIVE: To determine whether there is continuous monitoring of internal

control system to ensure that internal control remains tuned to the changed

objectives, environment, resources and risks.


Internal Audit Function

The agency has an effective internal

audit function

The internal audit function is

independent of the activities they audit

and are prohibited from having

operating responsibilities

The internal audit function adheres to

professional standards (e.g.,

International Standards for the

Professional Practice of Internal

Auditing)

The scope of internal audit activities is

appropriate given the nature, size and

structure of the agency

The internal audit department develops

an annual plan that considers risk in

determining the allocation of resources

The results of the internal audit

activities are reported to senior

management and external auditors

Initial Assessment:

Effective

Ineffective

Reason:






Other Monitoring Activities

Periodic evaluations of internal control

are reported to agency management

and those charged with governance.

Personnel, in carrying out their regular

duties, obtain evidence as to whether

the system of internal control continues

to function.

Policies and procedures are in place to

ensure that corrective action is taken on

a timely basis when control exceptions

occur.

Agency management takes adequate

and timely actions to correct

deficiencies reported by the internal

audit function or the independent

auditors.

Internal audit or another department

performs periodic reviews of internal

control

Agency management or those charged

with governance review

communications from external parties

that highlight areas of internal control in

need of improvement

Initial Assessment:

Effective

Ineffective

Reason:

I. ALLC Summary

Observations Recommendations AOM Ref.

Note: If there are “No” answers in the checklist, use professional judgment to determine overall

assessment with due consideration on how the absence of these controls will impact the risk

statement initially identified in the Agency Risk Identification (AgRI) Matrix.

COMMISSION ON AUDIT Document Code: COA-PAWIM-GAS-Form-07_PRCM




ANNEXES “A.7”

PROCESS-RISK-CONTROL MATRIX

Objective The Process-Risk-Control Matrix facilitates the understanding of processes as well as the process-level risks and controls affected by agency-levels risks identified. This tool will guide the agency audit team in identifying their focus areas for a specific audit period by obtaining an initial view of the processes. Accomplishing this Tool

a. Critical Path of the Process Document the understanding of the significant process identified which is affected by the agency-level risks as reflected in the Agency Risk Identification Matrix. Auditors may use the narrative or flowchart form in documenting the process understanding. The level of detail needed for the documentation depends on the objective of the auditors. In any case, the documentation shall be sufficient enough to identify the process-level risks and controls including the impact to the accounts and PAPs of the agency. The documented process should reflect the actual process being done by the agency. This should be validated by conducting process walkthroughs.

b. Process risks and existing controls Process Risks – Identify the risks/what could go wrongs in the process through a

risk statement. Process-level risk is any event or circumstance that could affect the achievement of the process’ objectives.

Impact: Accounts Affected (including assertions) – Identify the extent to which the

risk if realized would impact the agency’s financial statement accounts. This is critical for planning the financial audit aspect.

Impact: Risk to PAPs – Identify the impact of process-level risks to the achievement

of the objectives of the agency’s PAPs. Examples are damage to assets, reputation impacts and ability to achieve key objectives.

Existing Controls – Indicate the controls identified during the process understanding.

The controls that should be documented are those that are being carried out at the time of the audit. Controls that have been presented in operations manual or procedures shall be validated through walkthrough procedures.

Control Design Assessment – Develop an initial assessment on the design of the

controls based on the results of the walkthrough procedures conducted. Tick the appropriate box if the control design is adequate or inadequate.

Reason if inadequate – Provide reason or the observation noted if the control design assessment is inadequate





c. Summary Key Observation – Document the observations obtained during the understanding of

the processes, risks and controls. Observations may include deficiencies noted on the design of process-level controls or red flags that we may note on the process that may indicate source of fraud risks among others. Incidentally, audit teams may need to issue an Audit Observation Memorandum (AOM) to call the attention of the agency for the observations noted.

Recommendation – Provide a recommendation (if applicable) for each key

observation noted. AOM Ref. No. – Indicate the AOM reference number for those observations issued

with an Audit Observation Memorandum.





PROCESS-RISK CONTROL MATRIX Agency:

Prepared By/Date:

Date:

Audit Period: Reviewed By/Date:

Date:

Approved By/Date: Date: a. Critical path of the process: Significant Process:

Sub- Process

a. Sale Transactions See attached flowchart of the process, marked as Annex A. b. Non-Sale Transactions See attached flowchart of the process, marked as Annex B.





b. Identify Process-level Risks and Relevant Controls

Process Risks Statement

Impact

Existing Controls

Control Design

Assessment

Reason if inadequate Accounts affected

(including assertions)

Risk to PAPs

c. Summary

KEY OBSERVATION RECOMMENDATION

COMMISSION ON AUDIT Document Code: COA-PAWIM-GAS-Form-08_ATS




ANNEX “B.1”

AUDIT TEST SUMMARY

Agency Prepared by: Date:

Reviewed by: Date:

Audit Period Approved by: Date:

Significant Account: Audit Risk ○ Minimal ○ Moderate

Account Balance: Assessment ○ Low ○ High

Part I: TEST OF CONTROLS

Note: TOC is not performed if audit risk assessment is High or Moderate since our preliminary assessment of Control Risk is “High - Not Rely on Controls”

Process: Controls to be Tested:

•

•

•

Person/s Assigned: Due Date: TOC Working Paper Reference:

Summary of Test Results

Findings Recommendation TOC W/P

Ref. AOM Ref.

Conclusion Final Assessment of Control

Risk

Low - Rely on Controls

(Controls are operating effectively)

High - Not Rely

(Controls are not operating effectively)

Re-assess audit

risk

Moderate

High

COMMISSION ON AUDIT Document Code: COA-PAWIM-GAS-Form-08_ATS




Part II: SUBSTANTIVE TEST

Extent of Testing ◻ Extensive (For Moderate or High)

◻ Less Extensive (For Minimal or Low)

ST Work Program Reference

Summary of Test Results

Findings Recommendation ST W/P Ref. AOM Ref.

Conclusion

COMMISSION ON AUDIT Document Code: COA-PAWIM-GAS-Form-09_AP




ANNEX “B.2”

AUDIT PROGRAM

Agency: Prepared: Date: Audit Period:

______________ Reviewed: Date:

Significant Account:

__________________________________

Risk Statement:

Audit Objectives Audit Assertions

E/O C R&O V P&D Comp

Legend: E/O - Existence/Occurrence C - Completeness R&O - Rights and Obligations V - Valuation P&D - Presentation and Disclosure Comp - Compliance

Audit Procedures to Consider

Audit Procedures Audit

Aspect W/P Ref.

Assigned to

Man days

Prepared by

Reviewed by

COMMISSION ON AUDIT Document Code: COA-PAWIM-GAS-Form-10_AOM




ANNEX “B.3”

Republic of the Philippines

COMMISSION ON AUDIT

_______________________

(Name of Agency)

_______________________

(Address of the Agency)

AOM No. : ______________

Date : ______________

AUDIT OBSERVATION MEMORANDUM (AOM)

For : __________________________

__________________________

__________________________

__________________________

Attention : __________________________

__________________________

__________________________

__________________________

We have audited the ____________________ and observed the following deficiencies/

errors:

________________________________________________________________________

______________________________________________________________________________

_________________________

May we have your comments on the foregoing audit observations within ________

calendar days from receipt hereof.

Likewise, please submit the following documents to enable us to make a decision in audit.

1.

2.

___________________________

Audit Team Leader

___________________________

Supervising Auditor

Proof of Receipt of AOM:

Name : ______________

Date : ______________

COMMISSION ON AUDIT Document Code: COA-PAWIM-GAS- Form-11_NS




ANNEX “B.4”


COMMISSION ON AUDIT

_______________________

(Name of Agency)

_______________________


NS No. : ______________ Date : ______________

NOTICE OF SUSPENSION (NS)

For : __________________________ __________________________ __________________________

Attention : __________________________ __________________________

We have audited the payment to ________________________of

_____________ for the period __________________ to ___________________ pursuant to __________________________, covered by the following reference document and particulars:

Check No./DV No. Date Amount Payee

The amount of ______________ was suspended in audit due to

___________________. Please submit the ___________ authorizing payment as required under _________________. The following persons have been determined to be responsible for compliance with the aforementioned requirement:

Name Position/Designation Nature of Participation

in the transaction

1.

2.

Please settle the above audit suspension through compliance with the

requirements indicated which we will evaluate. Items suspended in audit which are not settled within ninety (90) days from receipt hereof shall become a disallowance pursuant to Section 82 of P.D. No. 1445.

___________________________ Audit Team Leader

__________________________ Supervising Auditor

COMMISSION ON AUDIT Document Code: COA-PAWIM-GAS- Form-11_NS




PROOF OF SERVICE OF COPIES OF NS TO PERSONS RESPONSIBLE

Name of Person Responsible

Position Received by Date

1.

2.

3.

COMMISSION ON AUDIT Document Code: COA-PAWIM-GAS- Form-12_ND




ANNEX “B.5”


COMMISSION ON AUDIT

_______________________

(Name of Agency)

_______________________


ND No. : ______________

Date : ______________

NOTICE OF DISALLOWANCE (ND)

For : __________________________

__________________________

__________________________

Attention : __________________________

__________________________

__________________________

We have audited the payment for __________________________ dated

_______________________ in the amount of _______________, covered by the following

reference document and particulars:

Check No./DV No. Date Amount Payee

The amount of ___________ was disallowed in audit because

______________________________. This constitutes an __________________ as defined under

___________________.

The following persons have been determined to be liable for the transaction:

Name Position/Designation Nature of Participation in

the transaction

1.

2.

3.

Please direct the aforementioned persons liable to settle immediately the said

disallowance. Audit disallowances not appealed within six (6) months from receipt hereof shall

become final and executory as prescribed under Sections 48 and 51 of P. D. 1445.

___________________________

Audit Team Leader

___________________________

Supervising Auditor

COMMISSION ON AUDIT Document Code: COA-PAWIM-GAS- Form-12_ND




PROOF OF SERVICE OF COPIES OF ND TO PERSONS LIABLE

Name of Person

Responsible Position Received by Date

1.

2.

3.

COMMISSION ON AUDIT Document Code: COA-PAWIM-GAS- Form-13_NC




ANNEX “B.6”


COMMISSION ON AUDIT

_______________________

(Name of Agency)

_______________________


NC No. : ______________

Date : ______________

NOTICE OF CHARGE (NC)

For : __________________________

__________________________

__________________________

Attention

:

_________________________

__________________________

__________________________

We have audited the ______________________________ covered by the following

reference document and particulars:

O.R. No Date Amount Payor

The amount of ________________ was charged in audit due to

____________________________.

The following persons have been determined to be liable for the transaction:

Name Position/Designation Nature of Participation in

the transaction

1.

2.

3.

Please direct the aforementioned persons liable to settle immediately the said audit

charge. Audit charges not appealed within six (6) months from receipt hereof shall become final

and executory as prescribed under Sections 48 and 51 of P.D. 1445.

___________________________

Audit Team Leader

___________________________

Supervising Auditor

COMMISSION ON AUDIT Document Code: COA-PAWIM-GAS- Form-13_NC




PROOF OF SERVICE OF COPIES OF NC TO PERSONS LIABLE

Name of Person

Responsible Position Received by Date

1.

2.

3.

COMMISSION ON AUDIT Document Code: COA-PAWIM-GAS-Form-14_SAOR





ANNEX “B.7”

SUMMARY OF AUDIT RESULTS AND RECOMMENDATIONS

Agency : ___________________ Prepared by : _________________ Date : ___________

Audit Period : ___________________ Reviewed by : _________________ Date ___________

Approved by: : _________________ Date ___________ A. Matrix of Audit Findings and Recommendations

A.1 Financial and Compliance Audit

No. AOM No./Date Observation Recommendation Management Comment Rejoinder

COMMISSION ON AUDIT Document Code:




A.2 Performance Audit

No. AOM No./Date Observation Recommendation Management Comment Rejoinder

B. Summary of Unrecorded Adjusting/ Reclassifying Journal Entries

AOM Ref. Accounts and Description

Amount Financial Statement Effects of Unbooked Entries

Debit Credit

Assets Liabilities

Current Income

Prior Period Income Current Non-

Current Current Non-Current

Total

C. Results/Status of Other Audits (e.g., Fraud and GWSPA)

No. Significant findings/issues Reference Status of Audit Conclusion Remarks

COMMISSION ON AUDIT Document Code: COA-PAWIM-GAS-Form-15_AARC




ANNEX “C.1”

Republic of the Philippines COMMISSION ON AUDIT

(Sector) (Cluster)

CHECKLIST ON THE PREPARATION AND REVIEW OF THE

ANNUAL AUDIT REPORT/MANAGEMENT LETTER

Name of Corporation :

Supervising Auditor/ Audit Team Leader :

Period Covered : Date

Submitted:

P a r t i c u l a r s Yes No Remarks Validated

I. Form/Structure/Presentation of Annual Audit

Report (AAR)

A. Organization/Arrangement/Format 1. Contents of AAR arranged as follows:

a. Cover b. Flyleaf (blank page) c. Executive Summary (not to exceed 5 pages, use i, ii, iii for

pagination, position at the bottom right, Arial 10)

d. Table of contents – (TOC) (Check that headings in TOC mirror exactly the section names)

e. Flyleaf stating (Highlighted, Arial 20, center on page) –

PART I – AUDITED FINANCIAL STATEMENTS

f. Independent Auditor’s Report (to start with page no. 1 but page number not to be printed)

g. Audited Financial Statements (to start with the page no. following the last page of the Independent Auditor’s Report, position at the bottom right, Arial 10) Statement of Financial Position Statement of Profit or Loss or

Statement of Comprehensive Income, as the case may be

Statement of Changes in Equity






Statement of Cash Flows Notes to Financial Statements

h. Flyleaf stating (Highlighted, Arial 20, center on page) -

PART II – AUDIT OBSERVATIONS AND RECOMMENDATIONS

i. Audit Observations and Recommendations (Arial 11)

Show title (highlighted) on top left side of the first page of Part II

as AUDIT OBSERVATIONS AND RECOMMENDATIONS

Position page numbers at the bottom right, Arial 10

j. Flyleaf stating (Highlighted, Arial 20, center on page) -

PART III – STATUS OF IMPLEMENTATION OF PRIOR

YEAR’S AUDIT RECOMMENDATIONS

k. Status of Implementation of Prior Year’s Audit Recommendations (Arial 11) Show this title (highlighted) on top

left side of the first page of Part III as STATUS OF IMPLEMENTATION OF PRIOR YEAR’S AUDIT RECOMMENDATIONS

Position page numbers at the bottom right, Arial 10

l. Flyleaf stating (Highlighted, Arial 20) - PART IV – APPENDICES

m. Appendices (if any)

2. Contents of ML (COA Memo 2014-011, fonts, presentation format, etc same as AAR)– a. Date b. Addressee c. Authority, objective and scope of Audit d. Audit observations and recommendations e. management comments and audit teams’ rejoinder

B. Application Software, Page Set-up, Fonts, etc. 1. Paper size for AAR - 8 ½ by 11 (letter






size) 2. Page number – position at the bottom

right, Arial 10 3. Margins used - left “1 1/4”, right “1”, top

and bottom “1”, except if with letterhead “1/2” top margin

4. Font type and font size in the text of AAR – Arial 11

5. Software for the AAR text – MS Word 6. Software for the AFS – MS Excel, Arial

11 7. Presentation of tables in AAR text contents – without borders, (Font size, row & column height may be manipulated to fit space) 8. Presentation of the AAR – full block format (all headings/titles, sub-headings and paragraphs to start on the left margin)

C. Transmittal/Submission of AARs (Hard and

Soft copies) 1. Draft report – 1 copy

- all pages of the report should be clearly marked “Draft”

until the final report is issued - The memorandum of the SA

submitting the report to the OCD shall state the thrust areas that: have been audited but no

findings have been noted; and have not been audited and the

reason therefor 2. Final AAR – at least 16 copies 3. Transmittal letter (full block format; see

attached sample) - is a letter in not more than three

pages transmitting the AAR to the Head of the Agency and Board of Directors/Board of Trustees and shall contain the following: Authority for the audit; Coverage of the audit; Independent Auditor’s Report on

the FS; Summary of the most significant

observations and recommendations information that the other observations and recommendations are discussed






in detail in Part II. Audit Observations and Recommendations portion of the report;

Request for implementation of the audit recommendations;

Request for the agency, through the Agency Head, to accomplish the Agency Action Plan and Status of Implementation (AAPSI) on the audit observations and recommendations (AAPSI form to be attached to the transmittal letter pursuant to COA Memorandum No. 2014-002 dated March 18, 2014); and

Acknowledgement to Management

4. Copies of the ARR shall be furnished the following: President of the Republic of the

Philippines Vice President Speaker of the House of

Representatives Chairperson – Senate Finance

Committee Chairperson – Appropriations

Committee Secretary of the Department of

Budget and Management Governance Commission for

Government-Owned or Controlled Corporations

Presidential Management Staff, Office of the President

UP Law Center The National Library

II. Executive Summary (all caps, Arial 11,

position at the left margin)

Summarizes the significant results of audit for immediate attention and action of the Head of the Agency and shall contain the following (sub-headings highlighted and the first letters of the word therein capitalized, Arial 11):

Per Memorandum of the Asst. Comm., CGS dated March 27, 2014 relative to the Joint Memorandum of the Asst. Commissioners of the NGS, LGS and CGS






1. Introduction

- name of the auditee - audit objective/s - scope of audit

2. Financial Highlights (in Totals) - Comparative Financial Position

(assets, liabilities, equity, with Increase/Decrease

- Results of Operations - profit (loss), personal services, MOEE, financial expenses, net proft (loss)

- Cross check all amounts to the financial statements

3. Independent Auditor’s Report on the FS

4. Significant Audit Observations and Recommendations other than the bases for the modified opinion that need immediate attention and action by the Head of the Agency

5. Summary of total suspension, disallowances and charges as of year-end

6. Statement on the quantity/number of prior year’s audit recommendation/s implemented, partially implemented and no implemented in the current year

III. Independent Auditor’s Report (IAR)

(See sample format and illustrations of the different types of opinion in Annexes A1-10, take particular attention on the highlighted and italicized presentation of sub-headings. Underscoring was used to emphasize the necessary change/s to the parts and/or wordings for each type of opinion but no underlines shall be used in the IAR.)

A. Form and Structure (See COA

Memorandum No. 2010-029 and 2010-029A dated November 15, 2010 and January 4, 2011, respectively) 1. Uses stationery with COA letterhead 2. IAR with title (highlighted, all caps, Arial






11, position at the left margin) as follows: “INDEPENDENT AUDITOR’S REPORT”

3. Addressee – the governing board of the agency (highlighted, all caps, Arial 11), followed by agency’s name and address

4. Includes the following basic parts (for unmodified opinion): a. Introductory paragraph b. Management’s Responsibility for the

Financial Statements (italics) c. Auditor’s Responsibility (italics) d. Opinion (italics) e. Signature portion (position at the left

margin), presented as follows: COMMISSION ON AUDIT (highlighted, all caps) (Signature) (Printed Name) (highlighted, all caps) (Position/Designation)

f. Date of Independent Auditor’s Report – the date when the Auditor is able to reach a conclusion on the fairness of presentation of the FS

5. For modified opinion: a. Include a portion for Basis for

Qualified Opinion, Adverse Opinion, or Disclaimer of Opinion, as the case maybe, before the Opinion paragraph

b. Consider the necessary changes as shown in Annexes A1-9

6. For reporting responsibilities supplementary to the FS that is required by law or regulation, a separate section of the auditor’s report with sub-heading Report on Other Legal and Regulatory Requirements shall be provided while the auditor’s report on the FS shall be labeled Report on the Financial Statements

7. Affix initial of ATL on the duplicate of the IAR

8. Affix signature of SA on all copies of the IAR






IV. Audited Financial Statements (AFS)

(Give particular attention on the usual highlighted and italic presentation of sub-headings)

Present with comparative information of the previous year (current year’s figure and its column heading in the AFS highlighted)

1. Check mathematical accuracy of AFS by footing/cross-footing figures in columns/rows of the following: Statement of Financial Position (SFP) Statement of Profit or Loss (SPL) or

Statement of Comprehensive Income (SCI), as the case may be

Statement of Changes in Equity (SCE) Statement of Cash Flows (SCF) Notes to Financial Statements (NFS)

2. Equity figures in SCE tallies with that in SFP

3. Net profit/loss figure in SPL/SCI tallies with that in SCE

4. Cash and cash equivalents figure per SCF tallies with that in SFP

5. Accounts presented in SFP in the order of liquidity

6. Accounts under MOOE of the SCI and NFS presented in the order of descending account balances, as appropriate, with the Miscellaneous account as the last item

7. Each item on the face of SFP, SPL/SCI, SCE and SCF correctly cross-referred to related information in the NFS

8. Numbering of Notes in the NFS follows order of accounts presentation in the SFP, SPL/SCI, SCE and SCF in one column

9. Check overall presentation of comparative AFS

V. Audit Observations and

Recommendations

Significant deficiencies, discussed in the

portion “Audit Observations and Recommendations”, warranted inclusion in






the AAR

Unacted/partially implemented prior year’s recommendations reiterated/included as current year observations, as may be appropriate.

This part shall also include: - GOCCs accomplishments vis-à-vis

their targets as wel as the result of the determination on whether or not their reported accomplishments are in line with their mandate as outlined in their Corporate Charter (per Memorandum of the AsCom, CGS dated August 14, 2013);

- compliance with tax laws - general insurance of all insurable risks

of government agencies with the GSISI pursuant to Republic Act No. 656, as amended by Presidential Decree No. 245;

- status of ND, NS, NC (see Annex B); - gender and development; and - comments pertaining to differently-

abled persons and senior citizens shall also be made, if warranted.

Audit Observations and Recommendations are presented in the order of significance with priority for the reasons for modification of opinion on the financial statements

1. Topic sentence is a one-liner caption of

the main audit issue duly quantified, if possible (Highlighted)

2. Support paragraphs of audit observation

& recommendations are written in a brief and concise manner and contain statements of: condition (what is wrong), criteria (by what standard it is

judged), cause (why it happened) and effects (on fair presentation of FS,

operation/activity etc.) Notice of Suspension, Notice of

Disallowance or Notice of Charge issued pertinent to the observation






- condition/deficiency is adequately supported by competent and relevant audit evidence in the working

papers - condition/deficiency reported is

quantified - cause of condition/deficiency is clearly

stated - effect of condition/deficiency is

quantified, if possible - effect of condition/deficiency is traced

to the working papers - effect of condition/deficiency is traced

to the audit conclusions - audit conclusions proceed logically

from results of audit procedures performed

- audit conclusions answer the objectives of the audit

2.1 Do not use words like ‘implicit’

‘clearly’ ‘obvious’ ‘tirelessly’ ‘failure’ – avoid words expressing an extreme situation whether positive or negative

2.2. Do not use names of suppliers or individuals in reports or tables, such that they can be traced unless extremely necessary

3. Tables

Align all tables to be the width of the paragraph text

Amounts in tables should be right aligned, all texts should be left aligned or centered, as appropriate.

Provide analysis all tables and graphs presented

4. Figures

The word “million” is used after figures instead of the letter “M” and observe the following for figures in the text of the observation:

a. Less than P500,000 use the whole amount ex. P455,555

b. P500,000 or more round off as P0.500 million






c. Write amount as P373.752 million, P0.63 million,

P34.637 million d. Write percentages as 25.1

per cent e. Be consistent in presenting

figures Change all numbers less than 10

(1,2,3,…9) to words (one, two, three,...nine)

Use “0” (right aligned) instead of a dash

5. Tenses/Grammar Past tense is used in introducing the

recommendations followed by the action taken by management in present tense

(e.g., We recommended that Management analyze the account and adjust, as appropriate.)

6. Quotations

As much as possible, quotations of rules and regulations shall be avoided. If quotations cannot be avoided, quote only pertinent portions of provisions of laws, rules and regulations and present it with both sides short indented and enclosed with quotation marks.

Management’s comments shall not be quoted verbatim but shall be summarized.

Carefully check accuracy of necessary quotations and

references

7. Acronyms When using acronyms, spell out in

full on the first usage, and if the next occurrence of the abbreviation is a long distance away (3 pages) in the text, then spell it out again

Do not use acronyms without first using the full words

8. Paragraphs

Align all paragraphs






For all lists (a,b,c or bullets), start each item with a Capital letter, separate each item with a semi-colon ( ;) and use an ‘and’ before the last item.

Recommendations

a. address real causes of deficiencies b. are precise and doable c. do not use ‘should’ in recommendations

Management’s comments/Auditor’s rejoinder are properly presented in the “Audit Observations and Recommendation” portion

VI. Status of Implementation of Prior Years’

Audit Recommendations

A. Provide a statement on the quantity/nmber

of prior year’s audit recommendations implemented, partially implemented and not implemented in the current year (Note: Count recommendations individually and not on a per observation basis) followed by the Matrix of “Status of Implementation Prior Year’s Audit Recommendations” which contains the following columns -

Column 1 is for “Reference” - pertains to the

source of the observation. For example, year of the AAR, observation number and page number.

Column 2 is for “Observation” - presents all audit observations of previous year. (continuous numbering)

Column 3 is for “Recommendations” – presents all prior year’s audit recommendations

Column 4 is for “Status of Implementation”

which shall indicate

management’s action either – “fully implemented”, “partially






implemented”, “not implemented”

reason for non/partial implementation

covering year of the AAR when the finding was first raised

reference to the reiteration of the audit observation in the current year’s AAR, as appropriate

COMMISSION ON AUDIT Document Code: COA-PAWIM-GAS-Form-16_AAPSI





ANNEX “C.2”

AGENCY ACTION PLAN and

STATUS of IMPLEMENTATION

Audit Observations and Recommendations

For Calendar Year _____

As of ________

Ref Audit

Observation

Audit

Recommendation

Agency Action Plan Reasons for

Partial/Delay/ Non-

implementation, if

applicable

Action

Taken/

Actions to be

Taken

Action

Plan

Person/

Department

Responsible

Target

Implementation

Date

Status of

Implementation1

From To

Agency Sign-off:

1 Note: Status of Implementation may either be (a) Fully Implemented, (b) Ongoing, (c) Not Implemented, (d) Partially Implemented, or (e) Delayed

COMMISSION ON AUDIT Document Code: COA-PAWIM-GAS-Form-17_APMT





ANNEX “C.3”

ACTION PLAN MONITORING TOOL

Sector: _____________________________ Prepared by:

_____________________________ Date: ________________

Team: _____________________________ Reviewed by:

_____________________________ Date: ________________

Agency Audited:

_____________________________ Approved by:

_____________________________ Date: ________________

Audit Period: _____________________________

AAR Date: _____________________________

Ref. Audit Observation

and

Recommendation

Agency Action Plan COA Monitoring

Action

Plan/

Remarks

Person/Dept.

Responsible

Target

Implementation

Date

Date of follow-up

Implem. Status

(Full, Partial,

Ongoing, Non-

implementation)

Actual

Implementation

Date

Reason for

Delay/Non-

Implementation

(if applicable)

Comments/Action

Taken

Prepared by: Approved by:

Audit Team Leader Date Supervisor Date

COMMISSION ON AUDIT Document Code: COA-PAWIM-GAS- Form-18_QIT




ANNEX “D”

QUALITY INSPECTION TOOL

Prepared by : _____________________________________ Date : ___________________

Reviewed by : _____________________________________ Date : ___________________

Approved by : ____________________________________ Date : ___________________

Agency: ___________________________________________

Period: ___________________________________________

PART I: IRRBA Workstep Checklist

IRRBA Activities WP Ref. Performed

by Reviewed

by

1. Strategic Planning and Risk Identification

1.1 Perform Government Risk Identification

1.1.1 Develop/Update the

Government Risk Model

1.1.2 Identify Government Risks

1.1.3 Report the Results of GRI

1.2 Conduct COA Strategic Planning

2. Agency Audit Planning and Risk Assessment

2.1 Prepare Agency Audit Workstep

2.2 Understand the Agency

2.3 Identify Significant Agency Risks

2.3.1 Update Agency Risk Model

2.3.2 Identify Agency Risks

2.3.3 Prioritize Significant Agency

Risks

2.4 Understand the Agency-level Controls

2.5 Understand the Process






by Reviewed

by

2.5.1 Identify Critical Path of the

Processes

2.5.2 Identify Process Risks

2.5.3 Identify Impact

2.5.4 Identify Existing Process-

level Controls

2.6 Conduct Audit Risk Assessment and Planning

2.6.1 Financial and Compliance

2.6.2 Performance

2.6.3 Determine Audit Scope and

Timing

2.6.4 Determine need for

specialized skills

3. Execution

3.1 Design Audit Tests

3.2 Execute Audit Tests

3.3 Evaluate Audit Results

3.4 Communicate Audit Results

4. Conclusion and Reporting

4.1 Summarize Audit Results

4.1.1 Prepare summary of audit

results and recommendations

4.1.2 Discuss results of different

types of audit conducted

4.2 Prepare Audit Report

4.2.1 Prepare Annual Audit Report

4.3 Perform Overall Audit Review

4.3.1 Perform overall review and

approval

4.3.2 Issue report

4.4 Wrap-up and Archive the Engagement

4.5 Follow-up Agency Action Plan






by Reviewed

by

5. Monitor quality control on audit services

PART II: Quality Assurance Checklist

General Audit Procedures WP Ref. Performed

by Reviewed

by

1. Terms of Audit Engagements

An engagement letter has been prepared in accordance with COA policies and professional standards.

2. Independence

Members of the audit team are independent with respect to this audit client and its affiliates

3. Initial Engagements – Opening Balances

For initial audits, perform procedures to obtain sufficient appropriate audit evidence that: a. The opening balances do not contain

misstatements that materially affect the current period’s financial statements.

b. The prior period’s closing balances have been correctly brought forward to the current period or, when appropriate have been restated.

c. Appropriate accounting policies are consistently applied or changes in accounting policies have been properly accounted for and adequately disclosed.

4. Consultation

Identify areas and specialized situations where consultation is required and consult with others or use authoritative sources on other complex or unusual matters.

Areas identified: Consulted:






by Reviewed

by

Appropriate consultation has occurred in areas and special situations where required by COA policies and where the audit team otherwise deemed necessary.

Appropriate documentation has been prepared and reviewed for all consultation on significant issues and those consulted were informed of all the relevant facts and circumstances and the conclusions are reasonable and consistent with professional standards.

Memoranda that address all significant issues on which consultation occurred are associated with, or are attached to, the Audit Observation Memorandum (AOM) with an indication of the consultant’s approval. If consultation memoranda have not yet been completed or approved in writing, oral approvals have been obtained from the individuals consulted and noted in the AOM or an attachment to it.

Copies of the memoranda have been provided to the individuals consulted.

Conclusions resulting from the consultations have been implemented.

5. Minutes and Contracts

Obtain information regarding meetings of the management, board of directors, shareholders and important committees up to the report date. a. Read minutes. Obtain copies of the

signed minutes or prepare excerpts. (If the copies are not signed, compare them with the original signed minutes.)

b. If minutes have not been prepared for recent meetings, obtain a summary of what was discussed.

c. Compare significant matters identified above with information obtained during the audit and cross-reference significant matters affecting the financial statements to the appropriate workpapers.





General Audit Procedures WP Ref.

Performed by

Reviewed by

Obtain information about important contracts, agreements and similar documents and consider their accounting or auditing implications. Cross-reference significant matters affecting the financial statements and other agency-issued reports to the appropriate workpapers.

6. Consideration of Laws and Regulations in an Audit of Financial Statements

When planning and performing audit procedures and evaluating and reporting the results thereof, consider the risk of non-compliance by the agency with laws and regulations that may materially affect the financial statements.

Obtain a general understanding of the legal and regulatory framework applicable to the agency and how the agency is complying with that framework. The procedures ordinarily include: a. Use of existing understanding of the

agency’s industry and operation b. Inquiry of management concerning the

agency’s policies and procedures regarding compliance with laws and regulations

c. Inquiry of agency as to the laws or regulations that may be expected to have a fundamental effect on the operations of the agency

d. Discussion with management about the policies or procedures adopted for identifying, evaluating and accounting for litigation, claims and assessments

Met with: Findings:






by Reviewed

by

Perform procedures to help identify instances of noncompliance with those laws and regulations where noncompliance should be considered when preparing financial statements, specifically:

a. Inquire with management as to whether the agency is in compliance with such laws and regulations

Met with: Findings:

b. Inspect correspondence with the relevant licensing or regulatory authorities

Obtain sufficient appropriate evidence about compliance with those laws and regulations generally recognized to have an effect on:

- The determination of material amounts and disclosures in financial statements by considering them when auditing the assertions related to the determination of the amounts to be recorded and the disclosures to be made

- Programs, activities and projects of the agency

Sign one of the following statements, as applicable:

Performance of the above procedures has not indicated any noncompliance by the agency with laws and regulations that may materially affect the financial statements.

A possible non-compliance by the agency with laws and regulations was suspected or detected and we have obtained an understanding of the nature of the act and circumstances in which it has occurred, and sufficient other information to





General Audit Procedures WP Ref.

Performed by

Reviewed by

evaluate the possible effect on the financial statements and appropriate documentation , evaluation and notification of management and others has been performed.

7. Related parties

Review information provided by the directors and agency management identifying the names of all known related parties and perform procedures in respect of the completeness of this information including the following: a. Review prior year workpapers for

names of known related parties. b. Review the agency’s

procedures for identification of related parties

c. Inquire as to the affiliation of directors and officers with other entities

Inquired of:

d. Review agency management minutes of the meetings

e. Inquire of other auditors currently involved in the audit, or predecessor auditors, as to their knowledge of additional related parties.

8. Inquiry regarding Litigation and Claims

Carry out procedures in order to become aware of any litigation and claim involving the agency that may have a material effect on the financial statements.

9. Considering the Work of Internal Audit

Obtain a sufficient understanding of internal audit activities to assist in planning the audit and developing an effective audit approach.

Perform a preliminary assessment of the internal audit function when it appears that internal audit is relevant to the external audit of the financial statements in specific audit areas. Such assessment includes evaluating the competence and objectivity of the internal auditors.






by Reviewed

by

When the audit team intends to use specific work of internal audit, evaluate and test that work to confirm its adequacy for our purposes.

10. Subsequent events

Perform procedures designed to obtain sufficient appropriate audit evidence that all events up to the date of the auditors’ report that may require adjustment of, or disclosure In, the financial statements have been identified.

11. Going concern

The engagement team has considered and evaluated the appropriateness of management’s use of the going concern assumption underlying the preparation of the financial statements both in the planning phase and throughout the performance of the audit procedures.

12. Management Representations

Obtain a letter of representations that is tailored to the particular circumstances, dated the same date as our auditors’ report, and signed by the members of management who have primary responsibility for the agency and its financial aspects

13. Financial Statements Review

Apply analytical procedures at or near the end of the audit when forming an overall conclusion as to whether the financial statements as a whole are consistent with our understanding of the agency.

Verify opening balances on the basis of the prior year’s audit report and/or workpapers.

Cross-reference year-end amounts on the general ledger trial balance to the related audit workpapers.

Examine supporting documents and/or inquire of agency personnel to determine that significant entries made solely to prepare the financial statement, other than entries covered by other audit procedures, were properly authorized and






by Reviewed

by

accounted for.

Agree or reconcile the financial statement amounts and the financial data in the footnotes to the general ledger trial balance or other workpapers.

Determine that the financial statements and the financial data in the footnotes are clerically accurate

14. Communication of Audit Matters with Management and those Charged with Governance

Inform management as soon as practicable:

- If a fraud has been identified or if information obtained indicates that a fraud may exist

- Of the existence of material weaknesses in the design or implementation of internal control, including material weaknesses in the design or implementation of internal control to prevent and detect fraud, that have come to our attention

The audit team has determined the relevant persons who are charged with governance and with whom audit matters of governance interest are to be communicated.

The audit team has considered all audit matters of governance interest that arose from the audit of financial statements and communicated them to those charged with governance. Ordinarily such matters include:

a. General audit approach and overall scope of the audit

b. Selection of, or changes in , significant accounting policies

c. Potential effect of any significant risk and exposure that is required to be disclosed

d. Audit adjustments that could have a significant effect on the agency’s financial statements

e. Material uncertainties relating to going concern

f. Disagreements with management that could have a significant impact on the financial statements or the audit report






by Reviewed

by

g. Expected modifications to the audit report h. Internal control issues i. Issues with respect to agency’s integrity

and or fraud within the agency

Determine whether any identified risk of materials misstatements due to fraud has continuing control implications. Consider whether any control deficiency related to these risks, or whether the absence of or deficiencies in programs or controls to mitigate specific risks of fraud or to otherwise help prevent, deter, and detect fraud, represent matters (including potential material weaknesses) that should be communicated to agency management or any relevant regulatory body.

Inform those charged with governance about those uncorrected misstatements aggregated by us during the current audit that were determined by management to be immaterial, both individually and in the aggregate, to the financial statements as a whole.

Inform those charged with governance if a fraud has been identified involving management, employees who have significant roles in internal control, or others where the fraud results in a material misstatement in the financial statements.

Inform those charged with governance of material weakness in the design or implementation of internal control, including material weaknesses in the design or implementation of internal control to prevent and detect fraud, that have come to the auditors attention.

Inform those charged with governance of the agency’s noncompliance with laws and regulations that have come to our attention. If we have reason to believe that members of agency management are involved in noncompliance, report the matter at the next higher level of authority.

The audit team has communicated the above matters in a timely manner.






by Reviewed

by

The engagement team has communicated the matters in a way, which is appropriate depending on the nature and significance o f the matter as well as on the size and legal structure of the agency being audited.

I have reviewed this Quality Inspection Tool and the results of the procedures for this engagement and am satisfied that all applicable general audit procedures have been completed, the conclusions are reasonable and consistent with professional standards, and the AAR properly reflect the issues addressed.

Signature: ____________________________________ Date:

Maintenance of

Documented Information

COMMISSION ON AUDIT Document Code: COA-PAWIM-MDI-01


MAINTAINENANCE OF DOCUMENTED INFORMATION



THIS DOCUMENT WHEN PRINTED is an UNCONTROLLED COPY. ENSURE that the printed copy being used is the

current version by checking the effectivity date of the CONTROLLED COPY in the FILE SERVER/WEBSITE.

1. PURPOSE

This procedure defines the policies and processes on the maintenance of all

Maintained Documented Information to ensure that appropriate versions are

identified and made available at point of use. It also aims to ensure that Maintained

Documented Information of external origin is identified and their distribution

controlled.

2. SCOPE

2.1 This procedure applies to all Maintained Documented Information needed

for the Quality Management System of the Commission. The procedure

also covers the monitoring and/or distribution of externally-generated

Maintained Documented Information. Documents covered by the Quality

Management System of COA is identified in the structure as illustrated

below:

3. POLICY

It is the policy of the Commission to ensure that pertinent Maintained Documented

Information are properly identified, updated, approved and made available at points

of use. Likewise, it is the policy of the Commission to ensure that Maintained

Documented Information of external origin is identified and controlled during

distribution.








4. DEFINITION OF TERMS AND ACRONYMS Refer to GLOSSARY OF TERMS attached as Annex “A” for the definition of terms used in this Procedure. Refer to ACRONYMS attached as Annex “B” for the acronyms used in this Procedure.

5. RESPONSIBILITIES

Document Controller – shall oversee the implementation of this Procedure and

shall maintain and keep the original copy of QMS Maintained Documented

Information. In-charge of uploading, downloading and dissemination of finalized

and approved revision of QMS Maintained Documented Information.

Document Originator – initiates the creation and revision of any document.

Process Owner Head– reviews and approves creation and revision of any

document.

QMS Team Leader– reviews the established Maintained Documented Information

in line with the requirements of the ISO 9001 standards and approves the same for

implementation.

6. PROCEDURE

Major Steps Substeps Responsible

Reference/

Documented

Information

6.1 1. Prepare/revise

and update

document/

receive external

maintained

documented

information

Process

Owner Head,

/ Records

Management

Services

(RMS), GSO

Draft COA

Resolution/Circular

/ Memo

/ Manuals and

Procedures / MDI

Matrix

6.2 1. Record in the

logbook/DTS

actions taken in

the document

2. Review/approve

MDI

3. Generate

barcode sticker

DTS in-

charge of

concerned

Office,

Head of

Office/Sector,

Chairperson,

Commission

Proper

Approved COA

Resolution/Circular

/ Memo

Creation/revision and

update/receiving of

maintained

documented

Information

Review and approval

of documented

information








Major Steps Substeps Responsible

Reference/

Documented

Information

and attach to the

signed document

6.3 1. Assign document

number

2. Update record in

the DTS of

assigned

document

number

Records

Management

Services,

GSO

COA

Resolution/Circular

/ Memo

MDI Matrix

6.4 1. E-mail the PDF

copy to the RO

2. Produce copies

and upload the

PDF format in

the COA

Website for

Information

dissemination

3. Forward

photocopy to all

concerned

offices indicated

in the Covering

Document and

received/logged

in the MDI

logbook

4. Publish in the

website

Records

Management

Services,

GSO;

Information

Technology

Office

COA

Resolution/Circular

/ Memo

MDI Matrix

PROCEDURE DETAILS

6.1 Creation/Review/ Receipt of Maintained Documented Information

6.1.1 Quality Management System-related Maintained Documented

Information like Quality Procedures, and Work Instruction Manual

and Quality Manual shall be reviewed periodically or as deemed

necessary. Refer to attached Document Information Matrix.

6.1.2 The creation/revision of the documents depending on the type of

document follows the Manual of COA’s writing style.

Registration and

updating in the DTS

Dissemination,

uploading in the

COA Website and

maintenance of

controlled copies of

MDI








6.1.3 Process Owner Head or the Head of Office concerned initiates a

creation or revision of a document.

6.1.4 All documents that have been revised shall be considered obsolete.

The Document Controller requests for the deletion of obsolete

Maintained Documented Information from the file server/website.

However, the Document Controller keeps the latest obsolete

document in hard copy.

6.1.5 Externally-generated Maintained Documented Information received

either by the Document Controller of the Central Office and COA

Regional Offices are registered in the DTS and logbook for tracking

of the copy holder.

6.2 Review and approval of Maintained Documented Information

6.2.1 The proposed “DRAFT” for the new/revised Maintained

Documented Information is attached to the covering memo/briefer

which undergoes review and approval as follows:

Type of Document Reviewed by Approved by

Policies (COA

Resolution / Circular)

Concerned

Office/Sector Head,

Assistant

Commissioners’ Group

Commission Proper

(CP)

Policies (Internal

Policies – COA Memo)

Concerned

Office/Sector Head,

Assistant

Commissioners’ Group

Chairperson

Procedures, Manuals

(QMS, Operations, and

Audit Manuals,

Information Education

Communication (IEC)

Materials)

Concerned

Office/Sector Head /

Committee

CP and/or Chairperson

6.2.2 All existing forms prior to the implementation of the QMS and all

other government-prescribed forms being used are considered

approved for use and application.

6.2.3 The Document Tracking System is used to record the receipt and

status of action taken, and release of the document upon review

and approval by the DTS In-charge of the concerned office. Backup

of the system and its database is being done daily and monthly

backup is transmitted to an offsite backup location by the

Information Technology Office.








6.2.4 The concerned reviewing authority reviews the document within the

prescribed period as indicated in the work plan or as appropriate.

The comments on the documents reviewed is reflected as marginal

notes and/or separate communication attached to the document.

6.2.5 All approved master copy of documents including e-file, are

submitted to the Central Office Document Controller for

maintenance and monitoring.

6.2.6 A Maintained Documented Information shall be implemented on the

effectivity date as approved and signed by the Signatories.

6.2.7 A masterlist shall be maintained for tracking of the revision history

by the Document Controller – Central Office.

6.2.8 Originating office maintains the record of the document review.

6.3 Registration of Maintained Documented Information

6.3.1 A masterlist shall be maintained for tracking of the registration by

the Document Controller – Central Office. The assigned document

number shall be issued upon approval of the document.

6.3.2 Upon approval of documents, a document numbering shall be

implemented as follows:

Type of Document Document No. Format Responsible

Policies (COA

Resolution /

Circular)

Year - Series (yyyy - xxx)

eg. 2016-001

Commission

Secretariat

Policies (Internal

Policies – COA

Memo)

Year - Series (yyyy - xxx)

eg. 2016-001

Office of the

Chairperson

Procedures,

Manuals (QMS,

Operations, and

Audit Manuals, IEC

Materials)

Agency - Type of

Document Manuals (M)

and Procedures (P)

- Office - Series

eg. COA-M-PDS-001

eg. COA-P-QAO-001

Document

Controller – Central

Office

Forms and IEC

Material

Agency - Type of

Document - Office -

Series - Revision No.

eg. COA- F- ITO-001-

Rev01

Document

Controller – Central

Office








6.3.3 All the documents signed/approved by the Chairperson contains a

barcode.

6.3.4 Plans are identifiable as to revision through date and revision

number reflected on the header.

6.4 Distribution and maintenance of Maintained Documented Information

6.4.1 All documents upon approval are distributed as follows:

Type of

Document Distribution Method Responsible

Circular 1. Publication in the COA

website

2. Photocopy forwarded to all

concerned government

agencies and all COA offices

RMS

Resolution

Memorandum

1. Publication in the COA

Intranet

2. Photocopy forwarded to all

COA offices

Plan Photocopy forwarded to all

concerned COA offices

Manuals

Procedures

Photocopy forwarded to all


Forms Photocopy forwarded to all


Concerned

Office/RMS

6.4.2 COA Issuances such as COA Memo, Resolution, Office Order, etc.

for internal use are uploaded in the COA Intranet. Otherwise,

documents for use of government agencies such as COA Circulars

and Resolutions are uploaded in the COA Website and/or published

in the newspaper of general circulation.

6.4.3 All QMS documents, once uploaded onto the COA website shall be

considered current, hence, are applicable for adoption.

6.4.4 For certain document obtained through internet, access shall be

governed by concerned agency’s information access guidelines.

However, Maintained Documented Information received through e-

mail shall be recorded in the DTS for externally-generated

document.








7. FORMS AND TEMPLATES

7.1 Maintained Documented Information Matrix (Annex “A”)

7.2 Document Masterlist (Annex “B”)

7.3 Document History and Copy Holder Matrix (Annex “C”)

COMMISSION ON AUDIT Document Code: COA-PAWIM-MDI-

Form-01_MDI





THIS DOCUMENT WHEN PRINTED is an UNCONTROLLED COPY. ENSURE that the printed copy being used is

the current version by checking the effectivity date of the CONTROLLED COPY in the FILE SERVER/WEBSITE.

ANNEX “A”

MAINTAINED DOCUMENTED INFORMATION MATRIX

Functional

Area Process

Maintained Documented Information

Internally Sourced Externally Sourced

Office of the

Commissioner

Policy Formulation

and Development

Review and

Approval of:

Guidelines,

Decisions,

Circulars,

Guidelines, circulars,

resolutions, memoranda

Memoranda,

Resolutions

Philippine Public Sector

Standards on Auditing

INTOSAI Guidelines

Philippine Public Sector

Accounting Standards

CGS,NGS,LGS

Audit Process PPSSA,

IRRBA Manual

PPSAS

PFRS

General Audit Instructions

Planning COA Memo 2014-011 dated

Oct. 21, 2014 Re: Revised

Guidelines Unified Audit

Approach

Determine the

elements of the

audit

Identify subject

matter and criteria

Specific Audit Instructions

Understand the

entity and

environment

Develop audit

strategy and plan

Understand

internal control

Establish

materiality for

planning purpose

Assess risk

Plan audit

procedure to

enable reasonable

assurance

Audit Program

Consider non-compliance that may indicate

suspected unlawful acts


Form-01_MDI







Functional

Area Process



Execution IRRBA Manual GAA, COB, Budget

Ordinances

COA Circular 2012-003

dated Oct. 29, 2012 Re:

Updated guidelines on

irregular, unnecessary,

excessive, extravagant and

unconscionable

Gather evidence

through various

means

COA Circular 2012-001 Re:

Revised documentary

requirements on basic

government transactions

Continually update

planning and risk

assessment

Evaluate whether

sufficient

appropriate

evidence obtained

Consider

materiality for

reporting purpose

Form conclusions

and issue AOM,

ND and NC

COA Circular 2009-006

dated Sept 15, 2009 Re:

Rules and Regulations on

Settlement of Account

COA Rules and Regulations

on Settlement of Account

Obtain written

representations as

necessary


Settlement of Account

Address

subsequent events

as necessary

Prepare audit

reports (AAR, MLs,

SAORs, etc.)

COA Memo 2014-006 dated

May 8, 2014 Re: Guideline

on the submission,

processing and publication

of reports in the COA

website

Include

recommendations

and responses

from entity as

appropriate.


Oct. 21, 2014 Re: Guideline

on the consolidation,

transmittal, annual/year-end

audit report


Form-01_MDI







Functional

Area Process



Transmit reports to

auditee and

oversight

Follow-up

Follow-up the

implementation of

audit

recommendation

using the AAPSI


March 18, 2014 Re:

Enhance monitoring of

compliance with

recommendation in the AAR

thru AAPSI and APMT

Legal Affairs

Office

Support Services

Legal Services

Render Legal

Opinion


Settlement of Accounts

(RRSA)

1987 Constitution

Rules of Procedure of the

COA (RRPC)

PD 1445

Policy issuances of COA GAA, COB,

Appropriation

Ordinance

COA Decisions Other laws creating the

agencies or mandating

audit of specific

programs, including its

Opinions of the LAO

Director or the General

Counsel

Implementing rules,

regulations, guidelines,

standards (i.e. RA

9184, RA 7160, RA

9710, etc.)

Audit Reports/AOMs/NDs/

NCs

SC

decisions/resolutions/

jurisprudence

Comment/Recommendation

of Audit Team/Supervising

Auditor/Cluster Director

DOJ, OGCC Opinions

CSC rules and

regulations

Accounting

Office

Transaction

Processing and

Billing Services

Processing of

Payroll

Regular/ Salary

Payroll)

Approved Appointment

Re-assignment Orders

Office Orders

COA Policy Issuances on

the payment of claims ad

Civil Service

Commission Issuances

General Appropriation

Act


Form-01_MDI







Functional

Area Process



Special Payroll

(Bonus/Producti

vity Personnel

Benefit & etc.)

Preparation of

Incentive/Other

Benefits

Processing of

Funded Claims

(DV's/GP's/Etc.)

required supporting

documents

Guidelines on the

Centralization of Payroll

Payroll Systems Operations

Manual

Cash Disbursement

Systems Operations Manual

Account Receivable

Systems Operations Manual

Collection Systems

Operations Manual

Government Accounting

Manual

DBM Issuances on the

release and utilization

of funds

GSIS, Pag-ibig,

Philhealth – Issuances

on Premium

Remittance

BIR issuances on

withholding of taxes

Memorandum of

Agreement on the ATM

Payroll with LBP

SC/OMBUDSMAN/CS

C Decision

General

Services

Office

Support Process: Contract Republic Act 9184 Procurement Manual

Procurement of Supplies and Materials

Notice of Award

Notice to Proceed

Infrastructure Management

Guidelines in the implementation and maintenance of Projects

Transaction Flowchart

Information Resources

Records Management Operations Manual

Work Environment Management

Transport operations manual

Security Services Contract/ Manual

Internal Audit

Office

Internal Audit

COA Resolution No. 2008-012 dated October 10, 2008

Phil. Government Internal Audit Manual

National Guidelines on Internal Control System

ITO

Website Maintenance

ITO Operation Manual – Website Administration and Database Administration

Data Privacy Act of 2012

COA Memo No. 99-067 dated September 30, 1999 re: Publication of Requested Annual Audit Reports in the COA Website

COA Memo No. 2014-006

dated May 8, 2014 re:

Guidelines on the

Submission, Processing and

Publication of


Form-01_MDI







Functional

Area Process



Reports/Documents in the

COA Website

AS Memo dated September

5, 2014 re: Request for

Corrections of Reports

Already Published in the

COA Website

Information

Systems

Development and

Maintenance

ITO Operation Manual –

Information Systems

Development and

Maintenance

ITO Operation Manual –

Quality Assurance and

Implementation

Approved COA Information

Systems Strategic Plan for

2014 to 2017

Network

Administration

Manual of Procedures for

Network Administration

Administration Sector

Memorandum dated July

15, 2013 re: Issuance of

Information and

Communications

Technology (ICT)

Guidelines on the Proper

Use of ICT Resources §

Guidelines on the Use of

COA Information and

Communications

Technology (ICT)

Resources for Users in

General

AS Memo dated December

9, 2013 re: Granting of

requests for E-mail (MS

Outlook) account

AS ITO 2014-001 dated July

7, 2014 re: Guidelines on

the Use of Wireless

Connection and Internet

Access

AS Memo dated September

3, 2014 re: Internet Usage


Form-01_MDI







Functional

Area Process



AS Memo dated January

28, 2015 re: Configuration

of newly acquired and

issued computers

System

Administration

Manual of Procedures for

System Administration

Professional

Development

Office

Training of

Personnel

Needs

Assessment

Design

Development

Implementation/

Delivery of

Training

Evaluation

Inventory of Training Needs

Course Design (Rationale,

Description, Target

Participants, No. of Days,

Course Agenda)

Training manuals and

materials

Human

Resource

Management

Recruitment and

Promotion

Merit Selection Plan

Selection and Promotions

Board Minutes of the

Meeting

CP Minutes of the Meeting

Relevant COA Resolutions

and Memoranda

CSC Qualification

Standards Manual

CSC Omnibus Rules

on Appointments

CSC Memorandum

Circulars

Special Audits

Office

Audit Process

Planning

Execution

Reporting

Post-Audit

Activities

Legal Services

COA Issuances

(Resolutions/ Circulars /

Memoranda)

Audit Plan

PD 1445 / RA 9184 /

GRs / EOs

Digitization of audit

evidence

Indexing /

Boxing /

Shelving

Scanning /

Quality Control

and Monitoring

of audit

documents

Printing of

requested

COA Issuances

(Circulars/Memoranda)


Form-01_MDI







Functional

Area Process



documents by

investigating

bodies

Certification as

to authenticity of

printed

documents

Quality Assurance Office

Quality Assurance Quality Assurance Review Handbook

Technical Services Office

Conduct technical review and evaluation of government contracts a) Infrastructure projects b) Goods and Services Conduct Inspection of a) Infrastructure projects b) Goods and Services"

Internal Documents Operating guidelines (submitted to CP for approval) Contracts Review Manual Inspection Manual COA Resolution No. 2015-018 COA Resolution No. 2015-014 COA Circular No. 2012-001 - Documentary requirements for various government transactions COA Memorandum No. 2009-074 - Guidelines in the assignment, technical supervision & control of Technical Audit Personnel TSO prescribed forms for a) review, b) inspection

PD 1445 RA 9184 - Government Procurement Act DPWH Department Orders - Preparation of ABC DPWH Standard Specifications for roads and bridges ACEL Equipment Rates

Conduct review of

appraisal or

valuation of real

estate properties

and unserviceable

properties for

disposal

Appraisal guidelines -

submitted for review by

Ascom's group/approval by

CP

International Valuation

Standards

Philippine Valuation

Standards

Information

Technology

Audit Office

(ITAO)

Conduct

information

technology/

information

systems audit

COA Resolution 2015-018

Operations Manual

Guidelines

External Documents

Philippine Constitution

PD 1445

Review of

procurement

Information and

Communications

Technology


Form-01_MDI







Functional

Area Process



resources and

services of

government

agencies;

Develop and

implement an e-

audit approach for

on-line

government-wide

financial systems

and assist in the

formulation

/enhancement of

accounting policies

and guidelines on

ICT-related matters

Systems

Consultancy

Services

Office (SCSO)

Evaluation of

manual and

computer-based

internal control

systems in

government

agencies in

coordination with

operating sectors.



Operations Manual

Philippine Constitution

PD 1445

International standards

on the practice of

internal auditing

RA 3456 dated June

16, 1962,(b) issuances

of COSO,INTOSAI

GOV (9001-9199) and

DBM issuances

Review the proper

installation of

Internal Audit

Service (IAS) and

recommend

measures for its

effective

implementation.

Conduct capacity

building activities

of IAS staff in

coordination with

Professional and

Institutional

Development

Sector (PIDS).


Form-02_DM







ANNEX “B”

DOCUMENT MASTERLIST

DOCUMENT

CODE

DOCUMENT

TYPE

DOCUMENT

TITLE/DESCRIPTION EFFECTIVITY

DOCUMENT

ORIGINATOR

REVISION

NO.

Illustration:

DOCUMENT

CODE

DOCUMENT

TYPE DOCUMENT TITLE EFFECTIVITY

DOCUMENT

ORIGINATOR

REVISION

NO.

COA-M-QMS-

QAO-001 MANUAL

COA QUALITY

ASSURANCE

MANUAL

JANUARY

2015 QAO, PIDS 0


Form-02_DM




Page No.: 1 of 1



ANNEX “C”

DOCUMENT HISTORY AND COPY HOLDER MATRIX

DOCUMENT CODE

DOCUMENT TYPE

DOCUMENT TITLE

EFFECTIVITY REVISION

NO. REVISION DETAILS

COPY HOLDER OF CONTROLLED

REPRODUCED COPY

Illustration:

DOCUMENT CODE COA-M-QMS-QAO-001 DOCUMENT TYPE MANUAL DOCUMENT TITLE COA QUALITY ASSURANCE MANUAL

EFFECTIVITY REVISION

NO. REVISION DETAILS

COPY HOLDER OF CONTROLLED

REPRODUCED COPY

JANUARY 2015 0 - QAO, PIDS

Commission Secretariat

Assistant Commissioners

Group

Sector Heads

COA Library Services, PRIDO

Records Management

Services

Information Technology Office

All Concerned Offices

JUNE 2016 1 Additional Procedures

on QMS

QAO, PIDS

Commission Secretariat

Assistant Commissioners

Group

Sector Heads

COA Library Services, PRIDO

Records Management

Services

Information Technology Office

All Concerned Offices

Retention of

Documented Information

COMMISSION ON AUDIT Document Code: COA-PAWIM-RDI-01


RETENTION OF DOCUMENTED INFORMATION





1. PURPOSE

This procedure aims to define and provide the controls needed on the use,

maintenance and disposal of Retained Documented Information.

2. SCOPE

This procedure applies to all Retained Documented Information needed for the

implementation of the Quality Management System as indicated in the Records

Disposition Schedule.

3. POLICY

It is the policy of the Commission to ensure pertinent Retained Documented

Information are established, organized, maintained and disposed properly in

accordance with the guidelines provided on retention of Retained Documented

Information.


Refer to GLOSSARY OF TERMS attached as Annex “A” for the definition of terms

used in this Procedure.

Refer to ACRONYMS attached as Annex “B” for the acronyms used in this

Procedure.

5. RESPONSIBILITIES

5.1. Records Management Services – is responsible for the maintenance and

disposition of inactive RETAINED DOCUMENTED INFORMATION.

5.2. Retained Document Information Custodian - ensure that the data and

information provided are sufficient as required in the relevant document or form.

5.3. RECORDS Officer – ensures and implements the proper collection, storage,

protection, retrieval, retention, and disposition of relevant or active RETAINED

DOCUMENTED INFORMATION.








6. PROCEDURE

Procedure Flow

(Key Activities) Sub-steps Responsible

Documented

Information

1.1 Identification of documents

is through agency name,

document type, title, year

(include Electronic file

name)

1.2 Centralized filing through

assigning of code in

accordance with decimal-

numerical coding system to

ensure uniformity of

recording

1.3 For each sector, filing is

done by cluster, year, and

type of document. For each

cluster, filing is done by

audit groups. For each audit

group, filing is done by audit

team.

1.4 Mainly, indexing is in

alphabetical order based on

the title.

1.5 For Legal RDI, we follow

docket system of recording

files/doc

RDI Custodian

Records Officer

Records

Management

Division

Operations

Manual

Coding System

Manual

NAP Guidelines

2.1 Labeling of folders, shelves,

and envelopes according to

filing system to ensure easy

retrieval

2.2 Records Disposition

Schedule is maintained

2.3 RDI borrowed by other

offices from the Records

Management Services is

traced thru a Retrieval

Reference Form

RDI Custodian

Records Officer

RDS

NAP Guidelines

Identification/

Classification of

RDI

Retrieval/

Retention of RDI








Procedure Flow


Documented

Information

3.1 RDI are kept in appropriate

locations

3.2 Backup of e-record is

maintained periodically

3.3 Access to the storage place

is limited to authorized

personnel to prevent leakage,

alteration, tampering, and loss.

3.4 Appropriate storage areas

are provided and pest control

conducted to avoid physical

deterioration, damage, and loss

of retained documented

information.

3.5 As a general rule,

correction in retained

documented information is not

allowed, unless there is

accompanying authorization.

RDI Custodian

Records Officer

ITO

NAP Guidelines

Pest Control

Schedule

4.1 Maintenance and disposal

are in accordance with the

established Records

Disposal Schedule

RDI Custodian

Records Officer

RDS

NAP Guidelines

PROCEDURE DETAILS

6.1. Identification/Classification of RDI

6.1.1. Identification of retained documented information is through document

type, title and year which will be used for reference in the maintenance

and filing of documents.

6.1.2. The retained documented information kept by the records office is

identifiable through assigned decimal-numerical coding system to ensure

uniformity of recording.

6.1.3. The indexing of issuances and decisions is by subject matter and office

order and decision numbers

Protection/

Storage of RDI

Maintenance/

Disposal of RDI








6.1.4. Each office follows alphabetical indexing based on the title of retained

documented information.

6.1.5. General classification of documents is identified using the NAP

Guidelines.

6.2. Retrieval/Retention of RDI

6.2.1. Retrieval of documents is through filing chronologically in designated

areas. Filing of retained documented information is arranged

systematically and alphabetically according to year. For voluminous

retained documented information, further classification is by Sector.

6.2.2. Records Disposition Schedule is used as basis for the retention of active,

storage, and disposition.

6.2.3. The RDS is revised as appropriate and through the creation of a Records

Management Improvement Committee.

6.2.4. All borrowed retained documented information from the Records

Management Services is traced thru a Retrieval Reference Form.

6.3. Protection/Storage of RDI

6.3.1. Regular pest controls to protect stored RDI are implemented according to

request and regular schedule.

6.3.2. The Administrative Aide is responsible in the custodianship of RDI of the

assigned Sector and the Service Chief has the overall responsibility of all

RDI under the custody of the Records Management Services

6.4. Maintenance/Disposal of RDI

6.4.1. The centralized files maintained in the Records Management Services are

stored in air-conditioned room to minimize physical deterioration. Iron

doors are installed to avoid theft and well-ventilated area to facilitate

storage and protection.

6.4.2. RMS request to the NAP for approval for the disposal of RDI in

accordance with the established Records Disposal Schedule, and holding

period of retention of RDI. (mention use of form)

6.4.3. All concerned Offices should fill out the Request for Authority to Dispose

of Records Form at the time of disposal of RDI for submission to the CP.









7.1. Records Retrieval Reference Form (Annex “A)

7.2. Records Disposal Schedule Form (Annex “B”)

7.3. Request For Authority To Dispose Of Records (Annex “C)

COMMISSION ON AUDIT Document Code: COA-PAWIM-RDI-

Form-01_RRR







ANNEX “A”

RECORDS RETRIEVAL REFERENCE

COMMISSION ON AUDIT Filing, Retrieval & Disposal Section RMD Form No. 06

RECORDS MANAGEMENT

SERVICES

Retrieval Reference Service

File No.

Re:

Subject/Description

THE REQUESTING OFFICIAL AND HIS/HER AGENT ARE JOINLTY LIABLE IN CASE OF LOSS OF THIS RECORDS.

Requesting Officer

NAME & OFFICE

Received By:

SIGN OVER PRINTED NAME

Issued By: Date


Form-02_RDS







ANNEX “B”

RECORDS DISPOSITION SCHEDULE

Agency 3. Schedule 5. Page 1 of 11

COMMISSION ON AUDIT 3RD

ADDRESS 4. Date Prepared

Commonwealth Ave, Quezon City September 23, 2003

6. 7. 8. Retention Period 9.

Item No.

RECORDS SERIES TITLE AND DESCRIPTION

a. Active

b. Storage

c. Total

Disposition Authority/Remark

ACCOUNTING AND FINANCIAL RECORDS

1 Abstracts of Real Property Tax Receipts (Provl F # 10-A )

4 yrs 4yrs

2 Abstracts of Collections and Deposits 1 yr 1 yr After corresponding voucher/receipt had been post-audited and finally settled.

3 Advices of Allotment & Appropriation ( Local Govt )

Permanent

4 Advices of Allotment - National ( DBM Form ) 3 yrs 3 yrs

5 Advices of Checks Issued and Cancelled ( GF # 17 )

1 yr 1 yr

6 Agency Budget Matrix/Allotment Release Orders 2 yrs 2 yrs

7 Allotment and Obligation Slips 3 yrs 3 yrs Unless attach to the voucher

8 Annual Audit Reports Transfer to the COA Library after transmitted to Agency concerned.

Auditing Unit Permanent

Records Management Division 2 yrs 2 yrs

9 Annual Information Return of Income Taxes Withhled on Compensation/Expanded ( BIR 1604CF/E )

1 yr 2 yrs 1 yr

10 Application for Bonding Officials and Employees ( GF # 58-A )

1 yr 1 yr After cancelled.

11 Approved Corporate Operating Budgets Permanent

12 Audit Plans 2 yrs 2 yrs


Form-02_RDS







13 Audit Programs 5 yrs 5 yrs After audited or case had been finally settled.

14 Audit Working Papers 5 yrs 5 yrs Provided there is no case.

15 Balance Sheets & Statements of Operation by Agency, Department and Overall Consolidated Statements

Permanent

16 Bank Passbooks 3 yrs 3 yrs After post audited, finally settled and not involved in any case.

17 Bank Reconciliation Statements 2 yrs 2 yrs After date of statement or case had been settled and law court decision had been issued.

18 Bank Statements with Credit Memo, Debit Memo & Used Checks

2 yrs 2 yrs - do -

19 Bills of Lading ( GF # 9-1 ) 2 yrs 2 yrs - do -

20 Bills/Statement of Accounts 5 yrs 5 yrs After payable/receivable had been received/settled.

21 Breakdown of Corporate Assessments and Balances

3 yrs 7 yrs 10 yrs


Form-03_RFADR







ANNEX “C”

NATIONAL ARCHIVES OF THE PHILIPPINES

AGENCY NAME:

Pambansang Sinupan ng Pilipinas COMMISSION ON AUDIT

REQUEST FOR AUTHORITY TO DISPOSE

ADDRESS:

OF RECORDS Commonwealth Ave, Quezon City

DATE: TELEPHONE NUMBER:

9510932

Records Management Services

GRDS/ RDS ITEM

NO.

RECORDS SERIES TITLE AND DESCRIPTION

PERIOD COVERED

RETENTION PERIOD AND PROVISION/S

COMPLIED (if any)

LOCATION OF RECORDS: VOLUME IN CUBIC METER:

COMMISSION ON AUDIT

Commonwealth Ave, Quezon City

PREPARED BY: (Name & Signature)

POSITION:

CERTIFIED AND APPROVED BY: This is to certify that the above mentioned records are no longer needed and not involved nor connected in any administrative or judicial cases.

Internal Quality Audit

COMMISSION ON AUDIT Document Code: COA-PAWIM-IQA-01


INTERNAL QUALITY AUDIT Effectivity Date: 29 Dec 2016




1. PURPOSE

An Internal Quality Audit (IQA) is conducted at planned intervals to provide information

on whether the COA-Quality Management System (QMS) conforms to its own

organizational requirements and those of ISO 9001:2015, and is effectively implemented

and maintained.

This procedure establishes the responsibilities and requirements of the COA Internal

Quality Audit Team with regard to planning and preparation, execution, reporting of

results, and monitoring of actions to address nonconformities (NC) and opportunities for

improvement (OFI) detected in audit.

2. SCOPE

2.1 The IQA covers the COA-QMS management, operations, support and outsourced

processes on the provision of audit services delivered by the following audit

clusters in the COA Central Office with audit groups and audit teams assigned to

agencies in the National Capital Region:

2.1.1 Cluster 1 – Banking and Credit, Corporate Government Sector

2.1.2 Cluster 6 – Health and Science, National Government Sector

2.1.3 National Capital Region, Local Government Sector

3. POLICY

3.1 Internal Quality Audit (IQA) is an integral part of the COA-QMS. It is recognized

that by providing assurance on the effectiveness of the Commission’s internal

control environment and risk management systems, the IQA can provide a valuable

contribution to achieving COA’s objectives.

The IQA conducts a systematic, independent, and documented process for

obtaining evidence; evaluate the evidence objectively to determine the extent to

which the criteria for quality are fulfilled; and, report findings to top management.

3.2 QMS IQ Auditors are selected based on the following criteria:

3.2.1 Must possess the knowledge, skills, and attitude of a competent auditor.

3.2.2 Must have completed the QMS/IQA Training.

3.2.3 Must not be assigned to an area where they have had involvement and/or

they are responsible organizationally for at least one year prior to the audit.

3.3 The audit of a QMS process is conducted at least once a year. Unplanned IQA may

be conducted when any of the following conditions exist:

3.3.1 Adoption of new policies and procedures

3.3.2 Changes in the quality system, personnel and processes;

3.3.3 Unusual increase in report of nonconformity;







3.3.4 Request of Relevant Interested Parties; and

3.3.5 Any conditions as determined by the QMS Leader


5. RESPONSIBILITIES

5.1 QMS Leader

5.1.1 Oversees the implementation of the IQA Program and recommends the

selected QMS IQ auditors for approval of the Chairperson; and

5.1.2 Renders overall authority on the disposition of IQA findings/conclusion.

5.2 IQA Supervisor

5.2.1 Prepares the IQA Program for the year and endorses it to the QMS Leader

for approval;

5.2.2 Selects composition of the IQA Team based on set criteria;

5.2.3 Assigns IQA Team Members to particular unit/area/process to be audited in

consultation with the IQA Team Leader;

5.2.4 Approves the IQA Plan;

5.2.5 Oversees and monitors the conduct of IQA;

5.2.6 Reviews the RFA before issuance;

5.2.7 Monitors the status of the Disposition/Action Plan (Section III of the RFA);

5.2.8 Reviews all audit reports and submits them to the QMS Leader; and

5.2.9 Monitors the conduct of IQA.

5.3 IQA Team Leader

5.3.1 Prepares the IQA Plan;

5.3.2 Leads IQA Team in the conduct of internal quality audit, assigns specific

tasks to team members, and deliberates findings;

5.3.3 Ensures that all RFAs issued to the office/process owner are acted upon

and completed within prescribed deadline from receipt of the RFA;

5.3.4 Evaluates the status of the RFAs and maintains records and updates the

RFA registry;

5.3.5 Provides an update or report on the status of RFAs;

5.3.6 Verifies the status of the implementation of the Disposition/Action Plan

(Section III of the RFA);

5.3.7 Recommends the issuance of non-audit related RFAs; and

5.3.8 Leads the conduct of IQA for the assigned audit area/process.







5.4 IQA Team Member

5.4.1 Conducts internal quality audit;

5.4.2 Prepares necessary report such as but not limited to audit reports and

RFAs;

5.4.3 Acts as documenter during the audit engagement;

5.4.4 Performs the IQA; and

5.4.5 Performs tasks as may be assigned by the IQA Team Leader.

5.5 Office/Process Owner

5.5.1 Represents the Office or process unit/area to be audited in consultation with

the IQA Team;

5.5.2 Undertakes root cause analysis;

5.5.3 Determines and implements correction and corrective actions;

5.5.4 Ensures the availability, readiness of office and conduct of internal quality

audit as scheduled in their respective offices; and

5.5.5 Ensures that all audit findings are acted upon without undue delay.

6. PROCEDURE

Procedure Flow


Documented

Information

6.1

6.1.1 Form the IQA Teams

6.1.2 Develop and Approve IQA Program and IQA Plan

6.1.3 Develop IQA Checklist

COA Chairperson

QMS Leader

IQA Supervisor

IQA Team Leader

Approved List of IQ Auditors

COA Office Order

IQA Program

IQA Plan

IQA Checklist

6.2

6.2.1 Conduct Initial Conference

6.2.2 Gather data

6.2.3 Record facts and evidences

6.2.4 Conduct Exit Conference

IQA Supervisor

IQA Team

Minutes of Entrance Conference

Interview Notes

Filled out IQA Checklist

Summary of IQA Findings

Minutes of Exit Conference

Plan the IQA

Conduct the

IQA







Procedure Flow


Documented

Information

6.3

6.3.1 Prepare and issue

RFAs

6.3.2 Prep/are IQA report

QMS Leader

IQA Supervisor

IQA Team

RFA

RFA Registry and Monitoring Matrix

IQA report

6.4

6.4.1 Verify implementation

and effectiveness of Disposition/Action Plan

6.4.2 Update the QMS Leader on the status of the Disposition/Action Plan

QMS Leader

IQA Supervisor

IQA Team Leader

RFAs as verified by the IQA Team

PROCEDURE DETAILS

6.1 Plan the IQA 6.1.1 Form the IQA Teams

6.1.1.1 The QMS Leader initiates the creation of the IQA Team.

6.1.1.2 The IQA Supervisor selects the IQA Team Members from the pool

of QMS Auditors and drafts the Office Order.

6.1.1.3 The QMS Leader initials the draft Office Order and submits it to

the COA Chairperson for approval.

6.1.1.4 The Office of the Chairperson forwards the approved Office Order

to the Records Officer for distribution to the concerned parties.

6.1.2 Develop and Approve IQA Program and IQA Plan

6.1.2.1 The IQA Supervisor prepares the IQA Program and is approved by

the QMS Leader. The IQA Program contains the following:

Audit Area

Audit Criteria

Name of the Office/Process Owner

Date of audit

Name of QMS IQ Auditors

Remarks

6.1.2.2 The IQA Team Leader prepares the IQA Plan and is approved by

the IQA Supervisor. It contains the following:

Report the

Results and

Findings of the

IQA

Monitor and

Evaluate the

Disposition/

Action Plan







Name of Office/Process Owner

Scope of the audit

Objective of the audit

Process to be audited

Responsible Person and Signature

Date of Audit

Name of the IQA Team Members assigned to audit the

process

Remarks

6.1.3 Develop IQA Checklist

6.1.3.1 The IQA Team reviews the QMS documents such as the QMS

Manual, Quality Procedure, and other related documents.

6.1.3.2 The IQA Team prepares the IQA Checklist based on the audit

scope, purpose, and document review. The checklist includes but

not limited to the relevant ISO requirement clause for proper

guidance and easy reference for audit report preparation.

6.1.3.3 The IQA Supervisor approves the QMS IQA Checklist.

6.2 Conduct the IQA

6.2.1 Conduct Entrance Conference

6.2.1.1 The IQA Team together with the IQA Supervisor conduct an

entrance conference with the concerned officials of the

office/process owner to be audited to discuss the audit scope and

objective and other matters related to the audit.

6.2.2 Gather data

6.2.2.1 The IQA Team gathers data through interviews, review of

documents, observation of process, inspection, and verification of

relevant documents or other techniques applicable under the

circumstances.

6.2.3 Record facts and evidences

6.2.3.1 The IQA Team records their findings, compares against criteria or

set standards to determine nonconformities or opportunities for

improvements.

6.2.3.2 The IQA team presents initial findings to the office/process owner

6.2.3.3 The IQA Team Leader calls for a deliberation meeting with the IQA

Team Members, IQA Supervisor, and QMS Leader where issues

are needed to be resolved which include, among others, the

classification of findings into conformity (C), nonconformities (NCs)

or opportunities for improvement (OFIs).

6.2.4 Conduct Exit Conference

6.2.4.1 The IQA Team Leader prepares the summary of IQA findings, and

provides copy to the office/process owner prior to the exit

conference.







6.2.4.2 The IQA Team together with the IQA Supervisor conduct exit

conference with concerned officials of the office or process owner

to present the IQA findings.

6.3 Report the Results and Findings of the IQA

6.3.1 Prepare and issue RFAs

6.3.1.1 The IQA Team documents the audit findings using the RFA Form.

6.3.1.2 The IQA Supervisor reviews the RFA, and issues the same to the

concerned head of office/process owner within five (5) working

days after the exit conference.

6.3.1.3 The IQA Supervisor ensures that all issued RFAs are recorded in

the RFA Registry and Monitoring Matrix.

6.3.1.4 The IQA Team Leader requests the office/process owner to submit

the duly accomplished RFA (Section II) within prescribed deadline

upon its receipt.

6.3.2 Prepare IQA Report

6.3.2.1 For each office/process owner audited, the IQA Team Leader

prepares the IQA Report summarizing the audit findings and audit

conclusions, including favorable observations.

6.3.2.2 The IQA Supervisor reviews the IQA Report and submits it to the

QMS Leader.

6.3.2.3 The QMS Leader approves the IQA Report and presents in the

management review.

6.4 Monitor and Evaluate the Disposition/Action Plan

6.4.1 Verify implementation and effectiveness of Disposition/Action Plan

6.4.1.1 The IQA Team Leader secures a duly accomplished Section II of

the RFA from the Office/Process Owner within prescribed deadline

from acknowledgement of the issued RFA.

6.4.1.2 The IQA Team Leader schedules a follow-up and the IQA Team

verifies the actions taken on the Disposition/Action Plan to address

nonconformities or opportunities for improvement and

accomplishes Section III of the RFA.

6.4.1.3 The IQA Supervisor monitors effective implementation of

Disposition/Action Plan by the Office/Process Owner and

accomplishes the appropriate portion of Section III of the RFA.

If the Disposition/Action Plan is not yet implemented on 1st

verification, request the office/process owner to submit a new

implementation date, subject to a 2nd verification.

If action is still not implemented on 2nd verification, the IQA

Supervisor forwards the case to the QMS Leader then elevate

to the QMR, for decision.

6.4.2 Update the QMS Leader on the status of the Disposition/Action Plan







6.4.2.1 The IQA Supervisor evaluates the effectiveness of the

Disposition/Action Plan relative to the attainment of the quality

objectives of the COA QMS, and submits the results of evaluation

to the QMS Leader.

6.4.2.2 The QMS Leader reviews the results of the evaluation conducted

by the IQA Team.

6.4.2.3 The QMS Leader submits to the QMR a periodic report containing

recommended courses of action to address those unimplemented

corrective actions for endorsement to the COA Chairperson for

approval.


7.1 Internal Quality Audit Program (Annex “A”)

7.2 Internal Quality Audit Plan (Annex “B”)

7.3 QMS IQA Checklist (Annex “C”)

7.4 Request for Action (Annex “D”)

7.5 Internal Quality Audit Report (Annex “E”)

7.6 RFA Registry and Monitoring Matrix (Annex “F”)

7.7 Summary of IQA Findings (Annex “G”)

7.8 Minutes of Entrance/Exit Conference (Annex “H”)

COMMISSION ON AUDIT Document Code: COA-PAWIM-IQA-Form-01_IQAPr






ANNEX “A”

Commission on Audit

Commonwealth Avenue, Quezon City, Philippines

Form No:

Rev. No:

Rev. Date:

INTERNAL QUALITY AUDIT (IQA) PROGRAM

_______________ (Year)

AUDIT AREA AUDIT

CRITERIA

OFFICE (PROCESS OWNER)

DATE OF

AUDIT

QMS IQ AUDITORS

REMARKS

Prepared by: (IQA Supervisor)

Approved by: (QMS Leader)

Signature over Printed Name Signature over Printed Name

Date: Date:

COMMISSION ON AUDIT Document Code: COA-PAWIM-IQA-Form-02_IQAPl






ANNEX “B”

Commission on Audit

Commonwealth Avenue, Quezon City, Philippines

Form No:

Rev. No:

Rev. Date:

INTERNAL QUALITY AUDIT PLAN

NAME OF OFFICE/PROCESS OWNER: DATE OF AUDIT:

SCOPE OF THE AUDIT:

OBJECTIVE OF THE AUDIT:

PROCESS TO BE

AUDITED

PROCESS OWNER DATE

OF IQA

QMS IQ AUDITOR

REMARKS RESPONSIBLE PERSON

SIGNATURE NAME OFFICE/UNIT

• Due to availability concerns, the assigned auditor can be replaced without prior notice to the Auditee. • An IQA Report will be submitted to the QMR at the conclusion of the audit.

Prepared by: (IQA Team Leader)

Approved by: (IQA Supervisor)

Conforme:

(Office Head/Process Owner)

Signature over Printed Name Signature over Printed Name Signature over Printed Name

Date: Date: Date:

COMMISSION ON AUDIT Document Code: COA-PAWIM-IQA-Form-03_IQAC






ANNEX “C”

Commission on Audit Commonwealth Avenue, Quezon City, Philippines

Form No:

Rev. No:

Rev. Date:

QMS IQA CHECKLIST

NAME OF OFFICE: (Process Owner)

AUDIT TYPE DATE OF AUDIT IQ AUDITOR/S

IQA

FOLLOW UP

START END

AUDIT CRITERIA (As indicated in the

IQA Program)

CONDITION AUDIT NOTES/REMARKS

FINDINGS

CONDITION:

C

CONFORMITY Requirement has been met; No action required

NA

NOT APPLICABLE No action required

NC

NONCONFORMITY Failure to meet one requirement of a clause of ISO 9001:2015 or set criteria; a lapse in the system that needs improvement

OFI

OPPORTUNITY FOR IMPROVEMENT Statement of fact or condition that does not signify a failure in the system but needs to be addressed

Prepared by:

(IQA Team Leader)



Date: Date:

COMMISSION ON AUDIT Document Code: COA-PAWIM-IQA-Form-04_RFA






ANNEX “D”


Form No:

Rev. No:

Rev. Date:

REQUEST FOR ACTION RFA No.

Section I. This section is to be accomplished by the IQ Auditor or Initiator

ISSUED TO: (Office/Process Owner)

DATE:

Nature of RFA: Source of RFA:

NC (Nonconformity-Failure to

comply with a requirement) Internal Quality Audit External Quality

Audit

OFI (Opportunity for

Improvement – Does not signify failure in the system but may be enhanced)

Others (Pls. specify) _______________________

REFERENCES: (Manuals, Procedures, COA Issuances, QMS Documents, ISO requirements, Statutory and

Regulatory requirements, etc.)

DESCRIPTION OF NC/OFI: (Statement of facts and observations. Include “what”, “when”, “where”, as

necessary, leading to the NC/OFIs)


Reviewed by: (IQA Supervisor)

Acknowledged by: (Office/Process Owner)


Date: Date: Date:

Section II. This section is to be accomplished by the Office/Process Owner (Attach sheet if necessary)

A. ROOT CAUSE ANALYSIS:(Appropriate tools like fishbone diagram, 5 whys, etc. may be

used/employed)

COMMISSION ON AUDIT Document Code: COA-PAWIM-IQA-Form-04_RFA






B. DISPOSITION/ACTION PLAN

1. Immediate Correction/s: (short term action/s to address detected NCs/OFIs)

Description Responsible Implementat

ion Date

2. Corrective Action/s: (long term action/s to address root causes of NCs/OFIs)

Description Responsible Implementat

ion Date

Prepared by: (Process Owner)

Approved by: (Process Owner)


Date: Date:

Section III. This section if for use by the IQA Team

VERIFICATION OF DISPOSITION/ACTION PLAN

Date Result Remarks Verified by:

(IQA Team Leader)

(1st verification)

(2nd verification)

Action Taken by the IQA Supervisor:

Signature over Printed

Name Date: ______________

Instructions:

1. Request the office/process owner to submit the duly accomplished RFA to the IQA Team within five (5) working days upon its receipt.

2. Verify the Disposition/Action Plan on the implementation date provided by the office/process owner. 3. If the Disposition/Action Plan is not yet implemented on 1st verification, request the office/process owner to

submit a new implementation date, subject to a 2nd verification. 4. If action is still not implemented on 2nd verification, the IQA Team Supervisor forwards the case to the QMS

Leader then elevate to the QMR, for decision.

COMMISSION ON AUDIT Document Code: COA-PAWIM-IQA-Form-05_IQAR






ANNEX “E”


Form No:

Rev. No:

Rev. Date:

INTERNAL QUALITY AUDIT REPORT ________

YEAR

OFFICE/PROCESS OWNER AUDITED: DATE OF AUDIT:

PURPOSE:

I. Audit Coverage

Area/Process Audited Responsible (Process Owner)

II. Favorable Observations

Area/Process Audited Description

III. Summary of Findings

RFA No. Brief Description of Findings Nature

(NC, OFI)

Status of Disposition/Action

Plan (Section III of

RFA)

IV. Audit Conclusion/s



Approved by: (QMS Leader)

Acknowledged by: (Head of QMR)

Signature over Printed Name




Date: Date: Date: Date:

COMMISSION ON AUDIT Document Code: COA-PAWIM-IQA-Form-06_RFARMM






ANNEX “F”


Form No:

Rev. No:

Rev. Date:

RFA REGISTRY & MONITORING MATRIX __________

YEAR

RFA No.

Description Nature

(NC/OFI) Criteria

RFA Initiator

Recipient

(Process Owner)

Date Issued

Status

Instruction: The IQA Team Supervisor shall see to it that this form is always updated.

COMMISSION ON AUDIT Document Code: COA-PAWIM-IQA-Form-07_SIQAF






ANNEX “G”


Form No:

Rev. No:

Rev. Date:

SUMMARY OF IQA FINDINGS _______________

(Date)

OFFICE/PROCESS OWNER AUDITED:

DATE OF AUDIT:

NO. CRITERIA EVIDENCE FINDINGS

1.

2.

3.

4.

5.

6.

7.




Date : Date :

Note: This is for discussion purpose only

COMMISSION ON AUDIT Document Code: COA-PAWIM-IQA-Template-01_ME/EC






ANNEX “H”


Form No:

Rev. No:

Rev. Date:

MINUTES OF ENTRANCE/EXIT CONFERENCE

Date: Time: Venue:

ATTENDEES:

Name: Position: Office:

Matters discussed during the meeting:

Prepared by: (IQA Team Member)

Reviewed by: (IQA Team Leader)



Date : Date : Date :

Control of Nonconformity and

Corrective Action

COMMISSION ON AUDIT Document Code: COA-PAWIM-CNCCA-01


CONTROL OF NONCONFORMITY AND CORRECTIVE ACTION





1. PURPOSE

This procedure establishes the process for dealing with nonconformities and

providing corrective actions.

2. SCOPE

This procedure covers from reviewing nonconformities including clients and relevant

interested parties’ (RIPs) complaints; determining the causes; and implementing

effective corrective actions to deal with the nonconformities which can affect the

COA’s Quality Management System (QMS).

3. POLICY

The delivery of services satisfies clients and RIPs’ requirements in accordance with

the COA mandate. As such, it is the policy of the Commission to identify, control, and

prevent the recurrence of services/outputs/processes that do not conform to specified

requirements. Likewise, it is also part of the policy to implement corrective actions to

continually improve the effectiveness of the established QMS.


Refer to GLOSSARY OF TERMS attached as Annex “A” for the definition of terms used in this Procedure. Refer to ACRONYMS attached as Annex “B” for the acronyms used in this Procedure.

5. RESPONSIBILITIES

5.1. Chairperson – ensures that this procedure is properly implemented and that

all identified NCs are verified and that appropriate disposition and control

measures are taken and in place

5.2. Sector Head/ Cluster/Regional/Office Director/ Process Owner – identifies

the detected NC and initiates the control and disposition measures; records

the information/data related to the detected NC using the RFA form or the

Action Plan on Unmet Targets; ensures the effectiveness of actions taken

5.3. Internal Quality Audit (IQA) Team – verifies if the disposition measures to

eliminate the NCs have been carried out








6. PROCEDURE

Major Steps Major Sub-steps Responsible

Documented

Information

6.1

6.1.1 Review

outputs

6.1.3 Identify the

NCs

COA officials/

employees/process

owners

Sector Heads/

Cluster/Regional/

Office Directors

Complaints from

COA Citizens Desk

Client Satisfaction

Surveys

Audit reports

IQA reports

Accomplishment

reports

Benchmarking

reports

6.2

6.2.1 Document

the NC by accomplishing the RFA*

6.2.2 Monitor the issuance and closure of the RFA (using the RFA Registry Matrix)

* In the case of NC from a non-achievement of a Sector/Office’s objective, document the NC using the “Action Plan for Unmet Targets”.

Initiator IQA Team Sector Head/ Cluster/Regional/ Office Director

RFA RFA Registry Matrix Action Plan for Unmet Targets

Identification

of

nonconformi

ng services/

outputs

Issuance of

RFA








Major Steps Major Sub-steps Responsible

Documented

Information

Monitor the issuance and closure of the “Action Plan for Unmet Targets”.

6.3

6.3.1 Correct the

NC 6.3.2 Perform

Root Cause Analysis (RCA)

6.3.3 Perform Corrective Action

Process Owner

RFA Fish Bone Diagram Action Plan

6.4

6.4.1 Implement

the Action

Plan

6.4.2 Monitor the

implementat

ion of the

Action Plan

6.4.3 Evaluate the

effectivenes

s of the

action/s

taken

6.4.4

Recommen

d measures

to ensure

full and

continual

adoption of

effective

corrective

action/s

Process Owner Sector Head/ Cluster/Regional/ Office Director IQA Team ACG

RFA Action Plan RFA Registry and Monitoring Accomplishment and Status Report Policy Recommendations

Identification

of the

cause/s of

the NC and

preparation

of the Action

Plan

Monitoring

of the

implementati

on and

effectiveness

of the action

taken








PROCEDURE DETAILS:

6.1. Identification of nonconforming services/outputs

6.1.1. Review outputs

In the course of their functions/tasks/activities, COA

officials/employees/ auditors review the following, among others:

a. Statutory and regulatory requirements

b. Stakeholders’ feedback/satisfaction surveys

c. Delivery of services

d. Audit activities

e. COA officials’ reviews

f. Benchmarking with other Supreme Audit Institutions (SAIs)

6.1.2. Identify the NCs

COA officials/employees/auditors identify the nonconforming services/

outputs through or as a result of their review of (but not limited to) the

above-mentioned reports/documents.

6.2. Issuance of RFA

6.2.1. Document the NC by accomplishing the RFA*

a. The Initiator (i.e., the COA official/employee/auditor who detected

the NC) documents the NC by accomplishing the appropriate part

of the RFA.

b. The Initiator submits the RFA to the IQA Team for review and

control number assignment within two (2) working days.

c. The IQA Team forwards the RFA to the concerned Sector/Cluster/

Region/Office within two (2) working days upon receipt thereof.

d. The Initiator and the IQA Team coordinate with regard to the

status of actions, and until the NC is resolved.

e. The IQA Team logs the RFA in the RFA Registry.

6.2.2. Monitor the issuance and closure of the RFA (using the RFA Registry

Matrix)

*In the case of NC from a non-achievement of a Sector/Office’s objective:

6.2.3. Document the NC using the “Action Plan for Unmet Targets”








a. The Initiator (i.e., the Sector/Office concerned) prepares the Action

Plan for Unmet Targets.

i. Identify the reasons for the unmet targets

ii. Recommend actions and corresponding timelines to attain the

unmet targets

b. The Sector/Office Head reviews and approves the Action Plan for

Unmet Targets

6.2.4. Monitor the issuance and closure of the “Action Plan for Unmet

Targets”

6.3. Identification of the causes of the NC and preparation of the Action Plan

6.3.1. Correct the NC

a. Take immediate action/”band-aid solution” to correct or contain the

NC

b. Refer to NC matrix for initial disposition if already included

6.3.2. Perform Root Cause Analysis (RCA)

a. The Process Owner:

i. acknowledges the RFA by signing on the first page;

ii. performs the RCA of the detected NC; and

iii. formulates the corrective action/s using the results of the RCA.

b. As necessary, use a Quality Circle Tool such as the “Fishbone

Diagram” or other tools to further identify and analyze the root-

cause/s.

6.3.3. Perform Corrective Action

a. The corrective action/s to be taken should address the analyzed

cause/s.

b. The Process Owner prepares the Action Plan within seven (7)

working days from receipt of the RFA from the IQA. The Action

Plan includes, among others, the specific implementation date for

every corrective action to be undertaken.

c. The Sector Head/ Cluster/Regional/Office Director shall, within five

(5) working days:








i. review the RCA and the proposed Action Plan with the

corrective action/s and implementation date/s;

ii. approve the Action Plan; and

iii. submit the Action Plan to the IQA Team (for updating of status

in the Registry and scheduling of follow-up).

6.4. Monitoring of the implementation and effectiveness of the action taken

6.4.1. Implement the Action Plan

a. The Process Owner:

i. carries out the corrective action/s within the implementation

date/s provided in the approved Action Plan; and

ii. submits the Accomplishment and Status Report to the Sector

Head/ Cluster/Regional/Office Director (for unattained targets)

6.4.2. Monitor the implementation of the Action Plan

a. The Sector Head/ Cluster/Regional/Office Director monitors if the

corrective actions are carried out according to the targeted

implementation date.

i. compares the Accomplishment and Status Report with the

Action Plan;

ii. validates the implementation of the corrective action/s;

iii. monitors if the corrective action/s is/are carried out according

to the targeted implementation date/s;

6.4.3. Evaluate the effectiveness of the action taken

a. The Sector Head/ Cluster/Regional/Office Director:

i. assesses the degree of improvement/correction done on the

NC and determines the reason/s in case of any gap in the

implementation of the corrective action;

ii. conducts regular meetings to discuss application of the COA

QMS, the results of actions taken, if any and all other ISO

concerns; and

iii. communicates the results of the evaluation to the Assistant

Commissioners’ Group (ACG)








b. The Sector Head/ Cluster/Regional/Office Director shall be

primarily responsible in ensuring the effectiveness of his/her own

action/ disposition, i.e., the detected NC will not recur.

c. The IQA Team verifies the effectiveness of actions taken through

follow-up audit and reports to the closure of the RFA.

6.4.4. Recommend measures to ensure full and continual adoption of

effective corrective action/s

a. The ACG:

i. reviews the results of the evaluation of the effectiveness of the

corrective action/s on the NC detected; and

ii. recommends to the Chairperson the measures necessary to

ensure full and continual implementation of the corrective

action plan. (as appropriate)

7. Forms and Templates

7.1. RFA (Annex “A”)

7.2. Control of Nonconformity Matrix (Annex “B”)

7.3. Action Plan on Unmet Targets Matrix (Annex “C”)

7.4. Fishbone Diagram Template (Annex “D”)

7.5. Matrix on Action/Disposition Plan (Annex “E”)

COMMISSION ON AUDIT Document Code: COA-PAWIM-CNCCA-Form-01_RFA







ANNEX “A”


Form No:

Rev. No:

Rev. Date:

REQUEST FOR ACTION RFA No.

Section I. This section is to be accomplished by the IQ Auditor or Initiator

ISSUED TO: (Office/Process Owner)

DATE:

Nature of RFA: Source of RFA:

NC (Nonconformity-Failure to

comply with a requirement) Internal Quality Audit External Quality Audit

OFI (Opportunity for

Improvement – Does not signify failure in the system but may be enhanced)

Others (Pls. specify) _______________________

REFERENCES: (Manuals, Procedures, COA Issuances, QMS Documents, ISO requirements, Statutory and

Regulatory requirements, etc.)

DESCRIPTION OF NC/OFI: (Statement of facts and observations. Include “what”, “when”, “where”, as

necessary, leading to the NC/OFIs)





Date: Date: Date:

Section II. This section is to be accomplished by the Office/Process Owner (Attach sheet if necessary)








A. ROOT CAUSE ANALYSIS:(Appropriate tools like fishbone diagram, 5 whys, etc. may be

used/employed)

B. DISPOSITION/ACTION PLAN

1. Immediate Correction/s: (short term action/s to address detected NCs/OFIs)

Description Responsible Implementation

Date

2. Corrective Action/s: (long term action/s to address root causes of NCs/OFIs)

Description Responsible Implementation

Date

Prepared by: (Process Owner)

Approved by: (Process Owner)


Date: Date:

Section III. This section if for use by the IQA Team

VERIFICATION OF DISPOSITION/ACTION PLAN

Date Result Remarks Verified by:

(IQA Team Leader)

(1st verification)

(2nd verification)

Action Taken by the IQA Supervisor:








Signature over Printed

Name Date: ______________

Instructions:

1. Request the office/process owner to submit the duly accomplished RFA to the IQA Team within five (5) working days upon its receipt.

2. Verify the Disposition/Action Plan on the implementation date provided by the office/process owner. 3. If the Disposition/Action Plan is not yet implemented on 1st verification, request the office/process owner to

submit a new implementation date, subject to a 2nd verification. 4. If action is still not implemented on 2nd verification, the IQA Team Supervisor forwards the case to the QMS

Leader then elevate to the QMR, for decision.

COMMISSION ON AUDIT Document Code: COA-PAWIM-CNCCA-Form-02_CNCM







ANNEX “B”

CONTROL OF NONCONFORMITY MATRIX

NATURE OF NON-

CONFORMANCE IMMEDIATE RESPONSE RESPONSIBILITY

Not all audit areas are

covered in the audit

Discuss with the team the

reasons for not covering the

audit areas

Provide assistance / augment

the team with additional

manpower from the team which

has already completed the

audit, or from the OAC/other

offices in the Sector

Cluster Director/

Supervising

Auditor

The processes of

achieving audit outputs

may not be adequately

documented

Mentoring/coaching of auditors

on IRRBA

Simplify required IRRBA forms

Assess the present approach

and propose a revised

methodology

Supervising

Auditor

Audit team leader

(ATL)

Delayed Submission of

Audit Reports

Render overtime Cluster Director/

Supervising

Auditor/ ATL

Delayed preparation of

Strategic Plan resulting

in delayed

implementation of the

initiatives and strategies

Fast track implementation of

the plans

Establish reasonable timelines

Ensure proper assignment of

tasks

Ensure equal distribution of

requirements

Commission

Proper and PFMS

as leads

All sectors

Not all of identified

thrusts or priorities are

pursued/attained

Identify reason/s why identified

thrusts or priorities are not

pursued or attained

Commission

Proper, PFMS,








NATURE OF NON-


Delayed submission of

accomplishment

reports/status reports as

basis for monitoring

Proper implementation

of policies may not be

adequately monitored

Identify reasons for delayed

submissions of accomplishment

reports/status reports

Assign a responsible officer

with defined duties and

responsibilities to monitor the

implementation of policies

Concerned

Sectors

Lack of timelines for

effective implementation

of policies

Establish reasonable timelines

for projects with no timelines

Commission

Proper, Concerned

Sectors

Vague or outdated

policies

Revisit/restudy past and

present policies

Propose revisions and

amendments

Commission

Proper, Technical

Working Group,

CPASSSS

Unable to process

claims due to

insufficiency of funds

Request for

realignment/augmentation of

fund

Request release of funds

From DBM

Staff, Directors,

Assistant

Commissioner

Unable to fund

procurement of supplies

and equipment not

included in the Annual

procurement Plan(APP)

Recommend earmarking of

funds for approval of the

Chairperson as basis for the

preparation of supplemental

APP

Staff, Directors,

Assistant

Commissioner

Inability to process

funded claims on the

prescribed period

Render overtime work

Request from the HR additional

staff to process claims

Directors and Staff

Directors/Asst.

Commissioner








NATURE OF NON-


Insufficient knowledge

of processors on the

laws, rules and

regulation for each type

of government

expenditures and the

required supporting

documents

Enhance competency by:

Coaching, mentoring, FGDs

Attend training

Directors

Staff

Incomplete supporting

documents for funded

claims forwarded for

processing

Inform claimant thru:

- Telephone

- Memorandum

Staff

Directors

Failure of the System

Development Group to

provide immediate

resolution on system

errors encountered

during processing of

claims

Manually process claims

Staff and Division

Chief

Insufficient validation

controls embedded in

the systems to tract

errors in computation of

earnings and deduction

and double payment of

claims

Manually compute and

manually verify from index of

payment provided in the system

Staff and Division

Chief

Not all Procurement

Request are procured on

time.

Discuss with the Offices

concerned/end user the reasons

for delayed in the procurement.

Provide assistance/ guidance of

the Office/ Sector in the

procurement

requirements/process.

Cluster Director/

Procurement

Chief/Officer








NATURE OF NON-


The processes of

procuring supplies and

materials may not be

adequately documented

Guiding/Lecturing of

administrative/ procuring officer

Simplify the procurement flow

process

Assess the Office procuring/

requesting officer the simplified

process

Procuring Officer/

Administrative

Officer

Delayed Submission of

Purchase/procurement

request/program

Render overtime

Follow up memo

Cluster Director/

Administrative

Officer/ Procuring

Officer

Delay in action on

proposals for

recruitment and

promotion due to-

Non-conformity

with some

procedural

guidelines and

deadlines set;

Non-compliance

with qualification

standards;

Incomplete

supporting

documents;

Additional

documents

required by

higher reviewing

bodies;

Office Intervention

- Communicating with

offices/sectors concerned

regarding non-conformities;

- Making a follow-up by the

HRMO on action taken by

sectors/offices involved in

the process;

- Preparing in advance

covering memoranda for

the release of signed

appointments to ensure

their immediate release to

concerned sectors/offices

upon receipt by HRMO from

the Office of the

Commission Secretary;

HRMO

Directors/Service

Chief

Concerned

Offices/Sectors








NATURE OF NON-


Schedule of

meetings of

higher

reviewing/approvi

ng bodies that are

beyond the

control of HRMO

Completion of the

signing and numbering

of

resolutions/appointment

s by approving

authorities prior to

release to HRMO

Delayed submission of

Internal Audit

Observation

Memorandum (IAOM)

Supervisor’s Intervention

- Coaching

- Assistance to the Team

Leader to come up with the

desired outcome on time

Supervisor/

Director

Violation on the

Guidelines on the use of

COA ICT Resources –

e.g. Access to

unauthorized sites;

unauthorized installation

of software and

hardware

Memorandum addressed to the

Head Office and Concerned

Personnel informing them of

the violation made

ITO Head for the

preparation of

memo;

Concerned Head

for the

appropriated

action/disposition

on concerned

personnel

Delayed in the

submission of AAR


Head of Sector on the status of

publication of AAR

ITO Head for the

preparation of the

status report and

memo for the

Head of Sector to

follow-up on the

non-submission/

delay in the

submission of AAR








NATURE OF NON-


Unauthorized data

manipulation affecting

data integrity of the IS


Head Office and Concerned

Personnel informing them of

the violation made

ITO Head for the

preparation/

issuance of memo

to concerned Head

of Office;

Concerned Head

for the appropriate

action/ disposition

on concerned

personnel

Failure to render legal

opinion on audit matters

requested by the Audit

Team/Cluster Director

within 10 days from

receipt of request with

complete documents

Inform the LAO Director of the

failure to render legal opinion

within the prescribed period

Submit immediately the draft

legal opinion

Ensure immediate review,

approval and release the

finalized legal opinion

Legal Officer

LAO Director

Conduct of Training

Needs Assessment

(TNA) not conducted on

scheduled date

Instruction to the TDDS-

Evaluation Section to conduct

the required TNA

Training Design

and Development

Services (TDDS)-

Evaluation Section

Course design of some

trainings not yet

completed

Follow-up through letters/memo

the completion of the course

designs by the assigned course

designers/reviewers

TDDS- Design

Section

Update regularly the course

designs in the Ladderized

Training Program (LTP)

ITO Head for the

preparation/

issuance of memo

to concerned Head

of Office;

Concerned Head

for the appropriate

action/ disposition








NATURE OF NON-


on concerned

personnel

Training

manuals/materials

irregularly updated

Hire external Resource

Persons (RPs) (retired COA

officials/SAs) to update

manuals. (NOTE: PDO, PIDS

does not have sufficient internal

RPs to do the work.)

TDDS- Design

Section

Non-conduct of

scheduled training due

to:

(a) number of

participants nominated

to the trainings do not

reach the minimum

target number of 20

participants per class

Send letters/memos to the

different Sectors for the

submission of nominations after

the cut-off date and/or cut-off

number.

Nomination/Data

Bank Section

(b) non-availability of

Resource Persons

Search for other available RPs.

The Assistant Commissioner of

the Sector decided to include

all those who were sent abroad

on training to be part of the pool

of RPs for local training

Office of the

Director, Local

Training and

Consultancy

Services (LTCS)

and International

Training and

Consultancy

Services (ITCS)

(c) Deferred conduct of

training to give way to

special trainings

conducted by other

sectors

Less than 95% retrieval

rate of Evaluation

Reports

Explain the required 100%

retrieval rate for validity of

Conclusions to be made on

RPs' performance and catering

services

TDDS - Evaluation

Section








NATURE OF NON-


Submission of PTER not

conforming with

prescribed timeline of

less than 45 days after

training

Prescribed survey checklist to

be filled up by immediate

supervisor

TDDS - Evaluation

Section

Misinterpretation in the

news media regarding

issues contained in the

audit report

Clarification (i.e., letter to the

editor or press statement)

issued to media when

necessary

PIO Editorial Team

PIO Director

Concerned

Auditor/Cluster

Director

Chairperson (for

approval and

release)

Some media/public

requests/queries may

involve confidential

information and/or

requests for unofficial

documents that cannot

be released

Refer to COA Circular No.

2013-006 dated September 18,

2013 providing Guidelines in

the disposition of requests for

documents/records/reports/deci

sions and other information in

the possession and/or custody

of COA, including furnishing of

copies thereof to requesting

parties

Clarification of principle on

confidentiality in audit

PIO Editorial Team

PIO Director

Concerned

Auditor/Cluster

Director

Inability to issue

AsOM on target date

Inability to issue the

QAR report on target

date

Render overtime work

Assign staff to act as the

reviewer/supervisor

Perform the detailed review of

the consolidated findings; or

Request from the HR additional

staff to act as DC/SC

Directors and Staff

Directors








NATURE OF NON-


Assigned

staff/supervisor

Directors

Mismatched work

assignment with staff

qualifications

Enhance competency by:

- Coaching, mentoring, FGDs

- Attend training

Directors

Staff

Lack of standard

operating procedures in

the operation; thus,

creating confusion and

inconsistencies in the

performance of tasks

relative to the audit of

information technology

and rendition of

consultancy services

Develop and submit for

approval standard operating

procedures/operational

guidelines of the Office

Service Chiefs and

Directors, ITAO

and SCSO

Absence of alternative

procedures that can be

adopted in the

verification of

accomplishments which

is necessary in the

evaluation/review of

contracts, inspection,

appraisal, if inclement

weather conditions and

security problems exist

Develop and propose for policy

issuance appropriate

alternative procedures which

could be adopted and produce

reliable results

Service Chiefs and

Director, Technical

Services

COMMISSION ON AUDIT Document Code: COA-PAWIM-CNCCA-Form-03_APUTM







ANNEX “C”

TARGET

ACCOMPLISHMENT

UNMET

TARGET

REASON

PROPOSED

ACTION/

TIMELINE

COMMISSION ON AUDIT Document Code: COA-PAWIM-CNCCA-Fishbone Diagram







ANNEX “D”

FISHBONE DIAGRAM

Cause and Effect

Material Method

Environment People Machine

COMMISSION ON AUDIT Document Code: COA-PAWIM-CNCCA-Template-01_MA/DP







ANNEX “E”

NATURE OF

NONCONFORMITY

PROPOSED

ACTION/DISPOSITION

PROPOSED DATE

OF

IMPLEMENTATION

PERSON

RESPONSIBLE

Feedback Management

COMMISSION ON AUDIT Document Code: COA-PAWIM-FM-01


FEEDBACK MANAGEMENT Effectivity Date: 29 Dec 2016




1. PURPOSE

The purpose of this procedure is to gather feedback on client satisfaction on the Quality Management System (QMS), processes and services being rendered by the Commission.

2. SCOPE This procedure covers feedback from clients on auditing processes and services rendered by concerned Auditors under the QMS of the Commission pertaining to the “Provision of Auditing Services”.

3. POLICY It is the policy of the Commission to gather feedback to determine client perception and satisfaction, and opportunities for improvement as part of continual improvement of its audit services.


5. RESPONSIBILITIES

5.1. Assistant Commissioners of the National Government Sector (NGS), Corporate Government Sector (CGS) and the Local Government sector (LGS) – are responsible for the following activities:

5.1.1. Designate a staff that will be part of the Inter-Sector Committee on

Client Satisfaction (ISCCS) to review the draft Client Satisfaction Survey (CSS) Questionnaire for uniformity and consistency, and pilot-test the survey.

5.1.2. Approve the pilot-testing of the survey and the plan for the conduct of

survey; and authorize the designated staff to administer the survey. 5.1.3. Review and approve the CSS Questionnaire of their respective

Sector. 5.1.4. Supervise the designated staff in administering the survey. 5.1.5. Review the consolidated results of the survey of the Sector submitted

by the designated staff. 5.1.6. Conduct debriefing with the concerned Cluster Director/Regional

Director on the result of the Sector’s survey.







5.1.7. Submit to QMS Team Leader the result of the Sector’s survey for integration with the results of the other Sectors’ survey, together with recommended measure or appropriate action to address gaps or nonconformity with the requirements.

5.1.8. Use the results of the Sector’s survey in the Sector Strategic Plan. 5.1.9. Recommend measure or appropriate action to the Assistant

Commissioners’ Group for the continual improvement of the Procedure on Feedback Management and the QMS of the Commission.

5.2. Assistant Commissioners’ Group (ACG) – is responsible for the following

activities:

5.2.1. Review the integrated results of the survey submitted by the QMS Team Leader.

5.2.2. Require the QMS Team Leader to submit semestral accomplishment

or status report to ensure the successful implementation of the Procedure on Feedback Management.

5.2.3. Recommend measure or appropriate action to the Commission Proper

or the COA Chairperson on how the integrated results from the survey may be used in the strategic planning of the Commission; or in the amendment or revision to the approved policy on QMS or the Procedure on Feedback Management.

5.3. Audit Team Leader (ATL) – is responsible for the following activities: 5.3.1. Provide appropriate response on the results of the survey, if

appropriate; and 5.3.2. Submit to the concerned Cluster Director/Regional Director, through

the Supervising Auditor, the appropriate response on the results of the survey.

5.4. Cluster Director/Regional Director (CD/RD) – is responsible for the

following activities:

5.4.1. Request from the ATL, through the Supervising Auditor, response on the results of the survey.

5.4.2. Submit to the concerned Assistant Commissioner of NGS, CGS, and

LGS the appropriate response on the result of the survey. 5.4.3. Recommend to the Assistant Commissioner of NGS, CGS and LGS

measure or appropriation action on how the results of the survey may be used in the Sector’s strategic audit planning.







5.5. Commission Proper (CP) – is the Management Review Team responsible for the following activities:

5.5.1. Establish the QMS in the Commission. 5.5.2. Approve the QMS Manual and the Procedure and Work Instruction

Manual (PAWIM) through issuance of a COA Resolution including any amendment or revision thereto.

5.5.3. Conduct periodic Management Review Meetings. 5.5.4. Delegate to the COA Chairperson the proper implementation of the

QMS policy through the issuance of appropriate COA Memorandum. 5.6. COA Chairperson – is responsible for the following activities:

5.6.1. Lead the proper implementation and monitoring of the QMS, including recommendation for continual improvement of the QMS.

5.6.2. Ensure effectiveness of the QMS though risk-based thinking. 5.6.3. Recommend proposal to amend or revise any part of the QMS Manual

and the PAWIM. 5.6.4. Authorize the development/expansion of the Citizen’s Desk as

additional feedback management procedure to measure and monitor satisfaction of clients and relevant interested parties on the audit services and processes.

5.6.5. Designate the QMS Team Leader, QMS Secretariat, and Members of

the five QMS Core Teams: Knowledge Management Team, Quality Workplace Team, Internal Quality Audit Team, Risk Management Team and the Training and Advocacy Team.

5.6.6. Conduct semestral meeting with the QMS Team Leader and the Team

Leaders of the five QMS Core Teams for monitoring/update on the QMS implementation.

5.7. QMS Secretariat – is responsible for the following activities:

5.7.1. Design and pilot-test the Client Survey Questionnaire. 5.7.2. Tabulate/process the accomplished survey forms by Sector, and

provide analysis on the results of the survey. 5.7.3. Submit the result and analysis of the Sector’s survey to the concerned

Assistant Commissioner of NGS, CGS, and LGS, through the QMS Team Leader, for information and consideration in the Sector’s strategic audit planning.







5.7.4. Integrate the result and analysis of the survey, and provide general statement and recommendation for continual improvement of the QMS of the Commission.

5.7.5. Submit the integrated result and analysis of the survey, including the

general statement and recommendation for continual improvement to the QMS Team Leader for review and submission to the CP or COA Chairperson, through the ACG.

5.7.6. At the appropriate time when data are available, provide comparative

analysis of the integrated results of the survey as inputs to planning. 5.8. QMS Team Leader – is responsible for the following activities:

5.8.1. Supervise the activities of the QMS Secretariat, and approve its request, documents and reports.

5.8.2. Review the integrated result and analysis of the survey of the three

Sectors, including the general statement and recommendation for continual improvement of the QMS of the Commission.

5.8.3. Submit to the CP or COA Chairperson, through the ACG,

recommendation for continual improvement of the QMS of the Commission resulting from the survey.

5.8.4. Initiate the conduct of Management Review Meetings of the CP and

the meeting of the COA Chairperson with the Team Leaders of the five QMS Core Teams pertaining to the implementation of the QMS.

5.9. QMS Secretariat – is responsible for the following activities:

5.9.1. Perform complete staff work pertaining to the responsibilities of the QMS Team Leader, including the tabulation and report on the results of the survey.

5.9.2. Take custody of the QMS documents, records, reports, information,

especially the integrated result and analysis of the survey, to facilitate access and retrieval.

5.9.3. Prepare the agenda and notify the attendees of the meeting called by

the QMS Team Leader. 5.9.4. Take the minutes of meeting and provide copy of the minutes to the

attendees of the QMS meeting. 5.9.5. Monitor submission of QMS requirements, including Request for

Action. 5.9.6. Submit periodic report to the QMS Team Leader on the status of

Request for Action.







5.10. Supervising Auditor (SA) – is responsible for the following activities:

5.10.1. Endorse/recommend appropriate response on the results of the survey submitted by the ATL.

5.10.2. Submit to the concerned CD/RD, through the Supervising Auditor, the

appropriate response on the results of the survey. 5.10.3. Provide feedback or recommend measures for the continual

improvement of the QMS of the Commission.

6. PROCEDURE

Key

Activities Sub-steps Responsible

Documented

Information

6.1

1. Administer survey/receive feedback from the survey

2. Determine appropriate office/sector to administer survey

Designated staff at the Office of the Assistant Commissioner of the NGS, CGS, and LGS

Client Survey Questionnaire

6.2

1. Review result of survey

2. Analyze result of survey

3. Submit result and analysis of survey by Sector

3. Provide recommendation on the result and analysis of survey by the Sector

Designated staff at the Office of the Assistant Commissioner of the NGS, CGS, and LGS

Result and Analysis of Survey

6.3

1. Report result and analysis of survey by Sector

2. Integrate result and analysis of survey of the 3 Sectors

3. Review integrated result survey

4. Submit report on result and analysis of survey

5. Submit integrated result and analysis of survey to CP or COA Chairperson through the ACG with recommendation for continual improvement

QMS Team Leader

QMS Secretariat

Report on the result and analysis of survey by Sector

Report on the integrated result and analysis of survey from the 3 Sectors

PROCEDURE DETAILS 6.1 The Assistant Commissioners of NGS, CGS and LGS recommend to the COA

Chairperson, within five working days from approval of COA Resolution

Gather/

Receive

Feedback

Analyze

Feedback

Report/

Integrate

Feedback







authorizing the implementation of the PAWIM, the creation of the Inter-Sector Committee on Client Satisfaction (ISCCS) as part monitoring and measuring mechanism to determine the level of client satisfaction on the QMS of the Commission on “Provision of Auditing Services”.

6.2 The COA Chairperson approves the office order creating the ISCCS within five

working days from submission by the concerned Assistant Commissioners. 6.3 The ISCCS convenes within five working days from approval of the office order

to determine the parameters on the conduct of the survey, and draft their respective survey plan for approval of the concerned Assistant Commissioners of NGS, CGS and LGS.

6.4 The Assistant Commissioners of NGS, CGS and LGS approve their respective

plan for conduct of the survey within five working days from submission of the proposed plan by their designated staff to the ISCCS, including the sample size, frequency, manner and method of the conduct of such survey.

6.5 The ISCCS drafts and pilot-tests the survey questionnaire within 10 days from

approval of the COA Resolution authorizing the implementation of the PAWIM, and accordingly revise the same within five working days after pilot testing.

6.6 The ISCCS submits to the concerned Assistant Commissioner results of the

pilot tested survey questionnaire within three working days after its revision or customization for approval.

6.7 The Assistant Commissioners of NGS, CGS and LGS approve their respective

survey questionnaire within five working days from receipt of the customized survey questionnaire, and authorize their designated staff to the ISCCS to administer the survey based on the approved plan.

6.8 The designated staff to the ISCCS administers the survey questionnaire in

accordance with the approved plan for the conduct of the survey by the concerned Assistant Commissioners of NGS, CGS and LGS.

6.9 The designated staff to the ISCCS retrieves and collates the survey

questionnaire from respondent clients within three days after administering the survey.

6.10 The Assistant Commissioners of NGS, CGS and LGS submit the filled up

survey questionnaires to the QMS Secretariat, through the QMS Team Leader, within two days after submission by their designated staff to the ISCCS.

6.11 The QMS Secretariat tabulates the responses to the survey questions by

Sector, integrates the three Sectors, and provides analysis thereon within 15 days from receipt of the filled up survey questionnaire.

6.12 The QMS Secretariat submits to the concerned Assistant Commissioners of NGS, CGS and LGS, through the QMS Team Leader, the result and analysis of the survey, including recommendation to address nonconformity, if any, within five days after completion of the tabulation and analysis.







6.13 The QMS Secretariat submits to the QMS Team Leader the integrated result and analysis of the survey questionnaire, including recommendation to address nonconformity with QMS requirements, if any, within the same period of submission with the concerned Assistant Commissioners of NGS, CGS and LGS.

6.14 The QMS Team Leader reviews the integrated result and analysis of the survey

questionnaire within five working days from receipt thereof, including recommendation to address nonconformity with QMS requirements; and submits the same to the CP or COA Chairperson, through the ACG as inputs to planning or for policy consideration.

6.15 The ACG reviews the integrated result and analysis of the survey questionnaire

and recommend to the CP or COA Chairperson appropriate measure or action to address nonconformity with QMS requirements and continual improvement.

6.16 The CP conducts Management Review Meeting to discuss the recommended

appropriate action to address nonconformity with QMS requirements and continual improvement.

6.17 The COA Chairperson holds meeting with the QMS Team Leader and the

Team Leaders of the five QMS Core Teams to monitor implementation of the QMS, taking into consideration the integrated result and analysis of the survey.

6.18 The Assistant Commissioners of NGS, CGS and LGS conducts debriefing with

their respective CDs/RDs, SAs and ATLs on the result and analysis of the survey, including recommendation to address nonconformity with QMS, if any, and continual improvement.

6.19 At the appropriate time when data become available, the QMS Secretariat

prepares comparative data analysis on the results of the survey for monitoring compliance with nonconformity requirements and continual improvement.


7.1 Client Satisfaction Survey Questionnaire (Annex “A”)

COMMISSION ON AUDIT Document Code: COA-PAWIM-FM-Form-01_CSSQ






ANNEX “A”

Republic of the Philippines COMMISSION ON AUDIT Commonwealth Avenue, Quezon City, Philippines

CLIENT SATISFACTION SURVEY QUESTIONNAIRE

Instructions: The statements are divided into five parts, Part I refers to audit team, Part II refers to audit process, Part III refers to audit reports, Part IV refers to the relationship between the audit team and your agency and PART V refers to your overall experience with COA. Please rate the statements according to your general experience with COA audit services. The rate ranges from 9 (you strongly agree with the statement) to 1 (you strongly disagree with the statement). For items rated “3” and lower, please indicate the reason for disagreement and any suggestion for improvement. Rest assured, this document will be treated with utmost confidentiality and information obtained shall only be used as input in improving COA’s performance. What you have to say is important to us. Thank you and have a great day.

Name : (optional)

Agency :

Division/Department/Office :

Position :

Date this survey was accomplished

:

STATEMENTS

RANGE

REMARKS

Somewhat Agree to Strongly Agree

Fair to no reaction

Disagree to Strongly Disagree

9 8 7 6 5 4 3 2 1

PART I: EXPERIENCE WITH AUDIT TEAM ASSIGNED IN THE AGENCY

The audit team is knowledgeable of the audit tasks and functions.

The audit team shows professional ethics at all times.

The audit team communicates information







STATEMENTS

RANGE

REMARKS


Fair to no reaction


9 8 7 6 5 4 3 2 1

clearly to my agency.

The audit team follow through with its responsibilities and readily accept the consequences (e.g. admitting and performing corrective actions in case of unintentional mistakes committed in the conduct of audit).

The audit team is resourceful and well-organized in performing audit functions.

The audit findings and recommendations were crafted to assist my agency’s current and future needs in terms of improving financial status.

PART II: EXPERIENCE WITH AUDIT PROCESS CONDUCTED IN THE AGENCY

The audit process was completed efficiently.

The audit methods applied by the team best fits my agency,

My agency was provided with information regarding requirements, laws, rules and







STATEMENTS

RANGE

REMARKS


Fair to no reaction


9 8 7 6 5 4 3 2 1

regulation helpful to my agency’s financial performance/status.

The audit conference provides an opportunity for my agency to be aware of the requirements in improving financial status/performance.

The audit conference is an avenue for my agency to clearly discuss concerns relative to audit findings and recommendations.

PART III: EXPERIENCE WITH AUDIT REPORTS RECEIVED

The report contains logical conclusions and reasonable recommendations.

The related reports were transmitted within the prescribed period of time.

The audit report contains understandable, well-documented, clear, and concise information that adds value to my







STATEMENTS

RANGE

REMARKS


Fair to no reaction


9 8 7 6 5 4 3 2 1

agency’s performance.

The audit report was accessible through COA website or available through the auditor, whenever my agency needs it.

The audit report reflects the actual financial status as well as areas of improvement of my agency.

The audit findings are reliable.

PART IV: BUILDING RELATIONSHIP

My agency finds the audit team reasonable and considerate in their audit findings, ethical in their actions and easy to work with.

My agency was given clear and understandable answers to our inquiries.

PART V: OVERALL EXPERIENCE

Overall, COA performed well in performing its audit function and added value to my agency.







We will be pleased to hear your additional comments/suggestions that may not be covered

by the survey statements above.

_______________________________________________________________________

____

_______________________________________________________________________

____

- Thank you. -







Client Satisfaction Index

This document serves as Client Satisfaction Index start-up kit designed to particularly measure the auditee’s (COA’s client) level of satisfaction in relation to the services rendered by COA.

I. Methodology

A. Objective of the Client Satisfaction Index

To measure the Commission’s performance relative to its audit functions as perceived

by the client.

B. Framework

The framework for obtaining client satisfaction (Figure 1) shows the process involved. Step 1. Essentially, the process begins with pinpointing the particular service to be assessed and who are the respondents for this undertaking. As for this case, COA wishes to assess how the audited agencies perceive COA’s audit services. Steps 2 and 3. The succeeding steps pertain to data collection and plan of analysis. This will outline what particular information or dimensions are essential to the improvement of COA’s audit services. Likewise, the methods in obtaining the information needed as well as the manner of analysis are designed in accordance with the audit service (the context as defined by COA). Steps 4 and 5. The results of the analysis will be communicated to decision makers and may be considered as basis for policy/performance improvement. Step 6. The last stage pertains to other avenues that COA may explore. This may be done through further research or other form of feedback mechanism.

C. Target Respondents

Since the QMS refers to auditee agencies as the specific client, this document targets to gauge the point of views of this particular group. Thus, audited agencies are the target respondents of this Client Satisfaction Survey.

D. What are measured

In obtaining the data, the critical part is defining the scope of the survey as well as the dimensions that needs to be measured. For this particular undertaking, this tool identifies particular dimensions essential in the performance of audit functions. As seen in Table 1, this tool focused on the four basic dimensions essential to the COA’s service delivery: 1) Content of Audit Report or the Output; 2) Audit Process; 3) Audit Team; and 4) Relationship. To measure these dimensions, a set of key criteria were assigned to each dimension. To check the perception of the client relative to COA’s service delivery, the assigned







criteria were translated into key statements. Client’s responses to these statements will then be analyzed using the corresponding criteria for each dimension. This Client Satisfaction Index intentionally establishes a link between dimensions and criteria. This is evident in the way the statements are placed. Noticeably, some statements are rephrased and placed under several dimensions. This is to check the validity and consistency of client responses. For instance, the statement “The report contains logical conclusions and reasonable recommendations” measures the quality of report that the Commission renders (under Audit Report Dimension). Likewise, the statement was rephrased to “The agency finds the audit team reasonable and considerate in their audit findings, ethical in their actions and easy to work with” which also measures professional relationship (under Relationship Dimension).

Table 1: Dimension and criteria for gauging client’s perception of COA’s audit service delivery

DIMENSION CRITERIA STATEMENT

AUDIT REPORT

The report

(output)

- In terms of content, was

the report rendered with

quality?

- The audit report was

understandable, well-

documented and adds value to

the audited agency’s

performance.

- The report contains logical

conclusions and reasonable

recommendations.

- As enabler, was the report

useful and adds value to

the audited agency?

- Overall, COA performed well in

performing its audit function and

added value to my agency.

- Availability of report - The audit report is available

anytime needed by the audited

agency.

- Is the report accessible in

COA website?

- The audit report can be

accessed through COA website

or through the auditor, whenever

the agency needs it.

- Is the report accurate? - The report reflects the actual

financial status as well as areas

for improvement of the audited

agency.







AUDIT PROCESS

- Delivery - Was the audit conducted

and the audit reports

transmitted timely or as

scheduled?

- The audit process was

completed efficiently and the

reports transmitted within the

prescribed period of time.

- Audit methods - Was the audit process

applied best fits the

agency’s needs?

- The audit methods applied by

the team best fits the agency.

- Rules and

regulation

provided

- As enabler, were the

communicated laws, rules

and regulations as well as

COA issuances helpful to

the agency?

- The audited agency was

provided with information

regarding requirements, laws,

rules and regulation helpful to

the financial performance

audited agency

- Interface (e.g.

entrance

conference, exit

conference,

field work,

reporting)

- Were the audit

conferences clearly

covered requirements for

compliance with the audit

procedures?

- The audit conference provides

an opportunity for the agency to

be aware of the applicable

requirements in improving their

financial status/performance.

- Were the audit

conferences provide an

opportunity for the audited

agency to clearly discuss

concerns relating to audit

findings and

recommendations?

- The audit conference is an

avenue for audited agency to

discuss their concerns relative

to audit findings and

recommendations.

AUDIT TEAM

- Audit team’s

competence

- Was the audit team able

to communicate clearly?

- The audit team communicates

information clearly to the audited

agency.

- Was the audit team

knowledgeable of their

tasks and functions?

- The audit team is

knowledgeable of their audit

tasks and functions.

- Were the audit team

demonstrates a good

writing skill as reflected in

reports and written

communications?

- The audit reports and

communications are clear, direct

and concise. .


creative and forward

- The audit findings and

recommendations were crafted







thinking in crafting audit

findings and

recommendations?

to assist audited agency’s

current and future needs in

terms of improving financial

status.


efficient in the

performance of their audit

functions?

- The team is resourceful and

well-organized in performing

their audit functions.

- Audit team’s

professionalism

- Was the audit conducted

with integrity?

- The audit findings are reliable.

- Is the audit team

accountable for fulfilling

its duties and adheres to

professional standards?

- The audit team follow through

with its responsibilities and readily

accept the consequences (e.g.

admitting and performing

corrective actions in case of

unintentional mistakes committed

in the conduct of audit).

- The audit team shows

professional ethics at all times.

RELATIONSHIP WITH THE CLIENT

- Relationship

with client

- Was a professional

relationship built between

the audit team and the

auditee (manner of

responding, reliable

responses to client’s

inquiry, considerate of the

auditees concerns)?

- The agency finds the audit team

reasonable and considerate in

their audit findings, ethical in their

actions and easy to work with.

- Was the team prompt and

concise in replying to

inquiries?

- The agency was given clear and

understandable answers to

inquiries.







II. Plan of Analysis

The Client Satisfaction Index uses performance satisfaction level. Each level (somewhat agree, strongly disagree, fair, no reaction, disagree and strongly disagree) is assigned with code value that formed a set of scales. The set of scales intend to measure the degree of client satisfaction in relation to dimensions identified (audit team, audit process, audit report, and relationship).

RANGE


Fair to no reaction Disagree to Strongly Disagree

9 8 7 6 5 4 3 2 1

The information obtained from this set of scales will serve as raw data for analysis. The frequency of responses per dimension will be processed and analyzed. The frequency of responses will be tallied and the tally results will be converted into scores. The score result will be plotted against four quadrants (Figure 2) to assess which particular dimension needs improvement. Validation Procedures:

- Parts or statements that are not rated. In refining the data, only completed parts will be included for analysis. This is not to render the incomplete datasets invalid but only to avoid possible biased results per statement and uneven total number of respondents per part. However, these types of datasets will be segregated and will be analyzed separately.

- Consistency of responses. Check consistencies in responses to rephrased statements. If responses vary in scales but is under one level of satisfaction, the answer may be considered valid. This only signifies the respondent’s level of confidence to similar statements if placed under two different dimensions.







Sample of valid response to rephrased statements:

STATEMENTS

RANGE

REMARKS


Fair to no reaction


9 8 7 6 5 4 3 2 1



X



X

On the other hand, if responses to rephrased statements fall under two extreme levels, the answer should be verified or maybe considered invalid. This instance may signify that the respondent understood the rephrased statements differently or the respondent rated the rephrased the statements without contemplating on it.







Sample of invalid response to rephrased statements:

STATEMENTS

RANGE

REMARKS


Fair to no reaction


9 8 7 6 5 4 3 2 1



X



X

Data encoding process

- If answers for rephrased statements are inconsistent or pending verification – encode this as invalid or as pending verification

- If a statement is not rated – encode this as unanswered question - If respondent failed to answer an entire part of page – encode this as pending

verification or unrated - If two scales are selected for one statement – encode this response as invalid - If remarks are indicated – encode the exact remarks







Figure 1: Client Satisfaction Index Framework

Identif

y the

target

client

s

Define

services

covered

by this

survey

- Plan the

mode of

data

collection

and

analysis

- Identify

the

dimensio

ns to be

measured

(e.g. staff

capacity,

process)

- Identify

the

- Identify

the

dimensio

n that

needs

Measur

e

clients’

experie

nce

Analyze

the

insights

obtained Communi

cate the

findings

Take

action

- Explo

re

areas

which

may

help

in

impro

Explore

Start

Here







Figure 2: Measuring the Client Satisfaction Index

Sample interpretation: Audit reports scored 4 and more than 50% of the respondents

are not confident with the audit reports rendered. The analyst may check on the criteria

provided to assess which among the criteria gained a low score.

High-Low High-high

Low-Low Low-High

Range

9

8

7

6

5

4

3

2

1

Percentage of client

0 10 20 30 40 50 60 70 80 90 100

Audit

team

Audit

Process

Audit reports

APPENDICES

COMMISSION ON AUDIT Document Code: COA-PAWIM_Glossary

GLOSSARY OF TERMS

Revision No.: 0



APPENDIX “A”

Assistant Commissioner – is a third ranking official of the Commission. There are 11

Assistant Commissioners of the Commission, each one heads a Sector.

Assistant Commissioners’ Group – the executive committee and recommendatory

policy-making body to the CP or the COA Chairperson. The 11 Assistant Commissioners

constitute the ACG.

Audit Team Leader – heads the audit team assigned to clients of the Commission

Citizen’s Desk – a text hot line and/or email address where citizens/public can

send/report their allegations of fraud, waste, abuse, or mismanagement of public funds

Client – the auditees of the NGS, CGS, and LGS

Client Survey – a mode of measuring client satisfaction by gathering feedback through

periodic administration of survey questionnaire

Cluster Director – heads a Cluster in the NGS and the CGS

COA Chairperson – the Chief Executive Officer of the Commission and presiding officer

of the CP

Commission Proper – is the highest policy-making and adjudicating collegial body of

the Commission. The Chairperson and two Commissioners constitute the CP.

Conformity – fulfillment of a requirement

Controlled Document – registered documents in the MDI master list and DTS

Corporate Government Sector – an Audit Operating Sector with audit jurisdiction over

all GOCCs

Correction – immediate action to address the identified nonconformity/problem.

Corrective Action – action to address root cause of the identified problem/gap to

prevent the recurrence of a detected nonconformity or other undesirable situation

Disposition – action or set of actions to be taken

Disposition Method – the manner of disposing, whether by destroying or deleting, RDI

in accordance with NAP guidelines


GLOSSARY OF TERMS

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Disposition/Action Plan – refers to both the identified correction and corrective action

to address the causes of the nonconformity and opportunity for improvement

Document Controller – designated personnel to oversee the implementation of the

document control procedure at the COA Central Office and Regional Offices

Document Copyholder – personnel identified as recipient of the distributed controlled

document

Document Master List – a listing of MDI being controlled by the Document Controller

and the Document Copyholder for their respective externally-generated MDI

Document Number – a set of characters, serving as the registration number, assigned

by the Document Controller to an approved QMS MDI

Document Originator – any employee/official who initiates the creation or revision of

any MDI

Document Tracking System – an online information system for monitoring the receipt,

review, approval, and distribution of internal and external documents

E-Maintained Documented Information – electronic Maintained Documented

Information that exist only in electronic form such as data stored on a computer, network,

backup, archive or other storage media

External Document Distribution List – a registry of the distribution of externally-

generated Maintained Documented Information generated from sources outside of the

Commission and are in custody of the Document Controller and/or the Document Copy

Holder because of its relevance to the operations

Government Auditing Services – a systematic process of providing relevant interested

parties, with objective assessments concerning the stewardship and performance of

government policies, programs or operations; and evaluate evidence to determine

whether information or actual conditions conform to establish criteria depending on the

type of audit to be conducted

Initiator – any official/employee/QMS IQ auditor of the Commission who identifies the

NC and OFI and initiates the issuance of an RFA

Internal Quality Audit – is a systematic, independent, and documented process for

obtaining objective evidence and evaluating it objectively to determine the extent to

which the audit criteria are fulfilled. This is conducted by the trained auditors within the

organization.


GLOSSARY OF TERMS

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Inter-Sector Committee on Client Satisfaction – the committee composed of

designated staff by the Assistant Commissioners of NGS, CGS and LGS that will draft

the plan for the conduct of survey, administer the survey, and retrieve the survey

questionnaire

IQA Checklist – a set of questions/items used as guide by a QMS IQ auditor in the

conduct of internal quality audit

IQA Criteria – a set of policies, procedures, or requirements, used as a reference

against which objective evidence is compared

IQA Evidence – qualitative or quantitative record, statements of fact or other

information, which are verifiable and relevant to the internal quality audit criteria

IQA Findings – result of the evaluation of the collected audit evidence against the

internal quality audit criteria. It can either be good/commendable, conformity,

nonconformity, potential nonconformity, or opportunity for improvement.

IQA Plan – a planned route of audit which specifies the audit scope, objective, process

to be audited, date of audit, name of office/process owner, person responsible and

signature, and the assigned QMS IQ auditor/s.

IQA Program – the annual plan of the IQA team, which consists of activities to be

conducted on COA Offices as stated in the herein scope. It details the audit area, audit

criteria, office/process owner, schedules, QMS IQ auditors, and remarks.

IQA Report – a document summarizing the audit results that presents the audit findings,

related evidences and audit conclusions. The basis for the preparation of this IQA Report

is the RFAs.

IQA Team – composed of qualified auditors to conduct IQA and prepare necessary

documents and reports.

Local Government Sector – an Audit Operating Sector with audit jurisdiction over all

LGUs

Maintained Documented Information – refers to meaningful information that includes

both internal and external documents which are required to be controlled and maintained

by the organization and the medium on which it is contained.

Master Copy – any QMS document that is in the control and possession of the

Document Controller

Master copy Maintained Documented Information – original approved document for

distribution


GLOSSARY OF TERMS

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National Government Sector – an Audit Operating Sector with audit jurisdiction over all

NGAs

Nonconformity – failure to comply with a requirement

Obsolete Maintained Documented Information – a superseded document indicated by

red “Obsolete Document” mark. The latest obsolete document is kept by the Document

Controller.

Office Director – heads a support office in the Commission

Opportunity for Improvement – an observed situation which is not an NC but where

the results achieved may not be optimal, less than well-organized, or over-complicated

Process Owner – the office, services, section, or unit in the Commission performing the

functions or the processes

QMS IQ Auditor – the person with demonstrated attributes and competence to conduct

IQA

QMS Leader – the head of the Quality Management System Core Team

QMS Secretariat – performs complete staff work for the QMS Team Leader and

supports the requirements of the five QMS Core Teams

QMS Team Leader – heads the five QMS Core Teams: Knowledge Management Team,

Quality Workplace Team, Internal Quality Audit Team, Risk Management Team, and

Training and Advocacy Team.

Quality Management System – a set of interrelated or interacting elements that allows

the organization to establish its policy and objectives and processes to achieve those

objectives

Records Disposition Schedule – a listing of RDI with its retention period and

disposition method

Records Officer – the designated personnel to oversee the implementation of this

procedure, maintenance of the centralized records and compliance to the NAP

Guidelines

Regional Director – heads a COA Regional Office geographically located nationwide.

Request for Action – a tool/form used to record the nonconformity and opportunity for

improvement, the corresponding root cause analysis, and appropriate actions taken to


GLOSSARY OF TERMS

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address such. It is a document utilized by anyone in the Commission to report any

detected NC and OFI.

Retained Documented Information – refers to documented information in written form

or any material - whether on film, negative, tape or other medium capable of being

reproduced; or by means of any recording device or process, computer or other

electronic device.

Retained Documented Information Custodian – the Administrative Officer from each

Office held responsible for the collection, maintenance, filing and safekeeping of RDI in

their areas

Retention Period – length of time a specific RDI must be kept within respective work

areas of office. The RDI is disposed of subject to the approval from the National Archives

of the Philippines in accordance with the approved disposition plan/schedule.

Revision History – is used to monitor all changes/revisions to the document

RFA Registry and Monitoring Matrix – a tool/form used to record the issued RFA and

its status

Sector – the major grouping of offices and clusters in the Commission.

Supervising Auditor – heads an audit group which constitutes several audit teams of a

Cluster or Regional Office.

Third Party Audit – an audit conducted by a certifying body

Uncontrolled Maintained Documented Information – any document that was

unofficially printed, reproduced and/or downloaded

COMMISSION ON AUDIT Document Code: COA-PAWIM_Acronyms

ACRONYMS Revision No.: 0



APPENDIX “B”

AAR – Annual Audit Report

AC – Assistant Commissioner

ACD – Assistant Cluster Director

ACG – Assistant Commissioners’ Group

ARD – Assistant Regional Director

ATL – Audit Team Leader

CAAR – Consolidated Annual Audit Report

CD – Cluster Director

CDk – Citizen’s Desk

CGS – Corporate Government Sector

CP – Commission Proper

CS – Client Survey

DTS –Document Tracking System

GOCC – Government-Owned and/or Controlled Corporation

IQA – Internal Quality Audit

ISCCS – Inter-Sector Committee on Client Satisfaction

LGS – Local Government Sector

LGU – Local Government Unit

MDI – Maintained Documented Information

ML – Management Letter

MRT – Management Review Team

NC – Nonconformity

NGA – National Government Agency

NGS – National Government Sector

OFI – Opportunity for Improvement

QMS – Quality Management System

RAT – Regional Audit Team

RCML – Regional Consolidated Management Letter

RD – Regional Director

RDI – Retained Documented Information

RDS – Records Disposition Schedule

RFA – Request for Action

RSA – Regional Supervising Auditor

SA – Supervising Auditor

SUCs – State Universities and Colleges

WD – Water District

COMMISSION ON AUDIT Document Code: COA-PAWIM_Reference

REFERENCES

Revision No.: 0



APPENDIX “C”

STANDARDS

ISO 9001:2015 Quality Management System Standard MANUALS Integrated Results and Risk-based Audit Manual Operations Manual – Records Management Office

COA ISSUANCES COA Memorandum No. 2016-023 dated November 14, 2016 COA Memorandum No. 2014-011 dated October 21, 2014 COA Strategic Plan 2016-2022 OTHER ISSUANCES NAP Guidelines

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