Question & AnswerQ&A (COA Resolution NO. 2012-017)
The scope of the SAS covers special audit and related services beyond the regular audit services such as Financial/Compliance/Regularity Audit, Fraud Audit, Performance or Value-for-Money Audit, and Government-Wide and Sectoral Performance Audit.
The Commission may deputize and retain certified public accountants and other licensed professionals as necessary to assist government auditors in specialized audit engagements when the exigencies of the service so require, as authorized under Section 31 of P.D. No. 1445.
The EL must include the scope of work, procedures to be undertaken, estimated timetable, form and nature of the work product, the amount or structure of service fees, and the terms and conditions for undertaking and delivering the services, including a Management Representation Letter and proof of authority of the auditee.
The service fee is the higher of either the industry rate for similar engagements or a fixed amount based on actual man-hours, supervisory and operating expenses, out-of-pocket expenses, and a reasonable premium determined by the COA Chairperson considering factors such as urgency, scope, complexity, and timeliness.
Up to a maximum of seventy percent (70%) of the service fees can be allocated collectively as honoraria for team leaders, members, supervising auditors, cluster directors, resource persons, and engaged experts.
No, those entitled to receive honoraria for participation in SAS projects shall not collect overtime pay for their participation.
Any unutilized portion of the fees collected shall accrue to the special fund of the Commission established for the purpose.
The COA Chairperson considers the degree of participation, effectiveness, quality of work, professionalism, timeliness of work completion, the complexity of the engagement, and the accomplishments reported for each participant.