QuestionsQuestions (COA Resolution NO. 2006-002)
Article IX-D of the 1987 Constitution. It vests COA with authority to examine, audit, and settle all accounts pertaining to (1) revenue and receipts, and (2) expenditures or uses of funds and property owned or held in trust by, or pertaining to, the government or any of its subdivisions, agencies, or instrumentalities.
A comprehensive audit is composed of financial audit, compliance audit, and performance audit.
The focus had been primarily financial audit, which subsumed compliance audit, while performance audit became the primary responsibility of the Management Services with emphasis on the Government Wide and Sectoral Performance Audits (GWSPA).
After evaluation of COA’s performance and assessment of stakeholders’ requirements, COA found the need to redirect its efforts; it had also already commenced comprehensive audits via prior resolutions (COA Res. Nos. 2005-004 and 2006-001).
COA Resolution No. 2005-004 dated March 17, 2005 (which included financial, compliance, and performance audits) and COA Resolution No. 2006-001 dated January 31, 2006 (which delineated responsibility to issue notices of suspension, disallowance, or charges).
Auditors shall conduct compliance audit as well as performance or value-for-money (VFM) audits, complementary to their financial audit.
It indicates that compliance and performance/VFM audits are conducted alongside and alongside the financial audit, to support and enrich the overall audit coverage under the Risk Based Audit Approach.
They must include the gist in the Annual Audit Report under the “Comments and Observation” section as prescribed in COA Memorandum No. 2002-047 dated August 13, 2002.
Yes. It states that separate reports on the compliance/VFM audits are available in more detail, while only the gist of significant findings must be included in the Annual Audit Report’s specified section.
Management Services shall continue conducting the Government Wide and Sectoral Performance Audits (GWSPA) and, when necessary, coordinate with audit sectors for concerted efforts in performance audits in agencies implementing government programs/projects.
It refers to the performance audits conducted government-wide and for particular sectors, focusing on programs, projects, or functions, for which Management Services has specific responsibility.
It directs that when necessary, Management Services should coordinate with audit sectors to ensure more concerted efforts in conducting performance audits in agencies implementing government programs and/or projects.
The Chairman shall issue the necessary guidelines to implement the resolution.
It takes effect immediately.
Financial audit focuses on financial matters; compliance audit checks adherence to rules/laws/regulations; performance or VFM audit evaluates efficiency, effectiveness, and value-for-money in government operations/program implementation.
They are performance audits aimed at determining whether government programs/projects or functions are carried out with efficiency and effectiveness, delivering value for money—referred to as performance or VFM audits.