Title
Creation of Internal Audit Services
Law
Republic Act No. 3456
Decision Date
Jun 16, 1962
The Internal Auditing Act of 1962 mandates the establishment of internal audit services in all government agencies in the Philippines to ensure efficient fiscal administration and performance, with the Auditor General overseeing the implementation and development of these services.
A

Organization and Control of Internal Audit Services

  • The Internal Audit Service is placed under the direct administrative supervision and control of the chief or assistant chief of the agency.
  • It functions as an independent staff unit performing staff functions within the agency.
  • Its primary responsibility is to institute and conduct an internal audit program for the agency.
  • The chief of the Internal Audit Service holds a rank and salary equivalent to the agency’s third-ranking official.
  • The chief of the Internal Audit Service reports directly to the agency chief or assistant chief.

Role of the Auditor General in Policy and Implementation

  • The Auditor General is tasked with promulgating and enforcing general policies, rules, and regulations on internal auditing.
  • The Auditor General coordinates and schedules the gradual installation of internal audit services across all government departments, bureaus, and offices.
  • Responsibilities include developing working plans and training programs for continuous improvement and effectiveness of internal audit services.
  • The Internal Auditing Coordinating Staff of the General Auditing Office assists the Auditor General in executing these duties.

Funding Provisions

  • Necessary funds for implementing the Act are to be included in the annual General Appropriations Act starting with the 1963 fiscal year.

Effectivity

  • The Act took effect immediately upon its approval on June 16, 1962.

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