Proposed

Revised Guidelines on the Implementation of the Unified Audit

Approach

Problems Encountered under the Existing Implementation

of UAA

1. Absence of supervision and control, and monitoring of audit

activities in the region by the RD

2. Limited supervision and control, and monitoring of audit

activities and performance of personnel in the region by CD due
to distance

3. Tedious coordination activities between the CD and RD in terms

of assignment and reshuffling of personnel in the region
considering the need to request comment from, and
concurrence by the CD of the NGS/CGS

4. Delay in the transmittal of Management Letters (MLs), Annual

Audit Reports (AARs), Consolidated AARs (CAARs) and other
consolidated requirements due to delayed submission of
inputs/reports by the Regional Supervising Auditor (RSA) and
Audit Team Leader (ATL)

I. General Guidelines (Proposed)

1. All employees in the regional offices, including the RATs assigned

to NGAs/GOCCs will be under the direct supervision of the RD.

2. The RD will be responsible in ensuring the timely release of

quality MLs/Regional Consolidated MLs (RCMLs) to the audited
agencies

3. The RD will be responsible for the submission of quarterly status

report and other required reports to CD taking into consideration
the instructions and requirements of the CD for RAT assigned to
an NGA/GOCC.

4. The RD is also responsible in the recruitment,

assignment/reassignment/reshuffling, and promotion of all
employees within the region including staffing of RATs, and in all
other technical and administrative matters.

5. The Assistant Commissioners (ACs) of NGS and CGS shall

provide on time, General Audit Instructions (GAI) indicating the
audit foci on matters that cut across the Sector for uniform
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 implementation. They shall also provide GAI to RDs on general
issues concerning the operations of State Universities and
Colleges (SUCs) and Water Districts (WDs).

6. The GAI that would cover critical and significant areas of

operations specific to each Cluster of the NGS/CGS shall be
identified and prescribed by the CD. The Specific Audit
Instructions (SAI) by audit groups shall be prepared by the
concerned Supervising Auditor (SA) at the CO and approved by
the CD.

7. All policy issues/concerns on NGAs/GOCCs encountered by the

RD/RSA and not resolved at the level of the Local Government
Sector (LGS) shall be resolved by the ACs of the NGS and CGS.

8. The CDs and the Assistant Cluster Directors (ACDs) shall initiate
the conduct of two joint conferences/workshops yearly to be
attended by the SA at the CO, the RD or Assistant Regional
Director (ARD) and/or RSAs or ATL for the purpose of (a)
assessing prior years audit performance and group level risk,
and audit planning given the results of assessment; and (b)
reviewing and consolidating annual audit outputs. The RD, CD
and other COA personnel may resort to online conferences as
the need arises.

9. The GAI containing the audit foci and thrusts for the LGUs shall
be issued by the AC of the LGS while the SAI shall emanate from
the RDs. The RD shall also issue SAI for Stand Alone
Agencies. Stand Alone Agency pertains to a national or
corporate agency located in the region and without
ROs/branches/FOs outside the region.

II. Specific Guidelines (Proposed)

A. CD of NGS and/or CGS

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.
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.
3. Disseminate to SA, ARD and RD the approved SAI for the
ensuing year not later than November of the current year.
4. Initiate the conduct of mid-year assessment not later than
July 31 to be attended by the RD or the ARD and/or the RSA
or ATLs to review and revise the audit foci and thrusts
areas for the year.
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 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.
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.
7. 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.
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.
9. Require the SA to review Annual Audit Report (AAR) of
teams under his/her direct supervision before submitting to
the CD and to prepare the CAAR considering the matrix
submitted by the RD and the ATL, and results of workshop
as input.
10. Review and transmit on time AARs and CAARs of agencies
with due consideration to the areas covered in the SAI.
11. Act on appeals from NDs/NCs and other decisions issued by
the SA/ATL within NCR.
12. Perform such other duties, functions and responsibilities for
the effective implementation of the UAA.

B. RD

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.
2. Ensure equitable distribution of workload to the different
RATs and supervise the conduct of audit.
3. Assess the quarterly status reports submitted by the RSA
on the implementation of and SAI, and act accordingly on
any audit issues raised 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. Review and transmit to the agency head RCML within the
set deadline.
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 5. Review the consolidated matrix prepared by the RSA taking
into account the SAI and submit to CD for consideration in
the preparation of CAAR.
6. Act on appeals from NDs/NCs and other decisions issued by
the RSA/ATL within their respective region.
7. Perform such other duties, functions and responsibilities for
the effective implementation of the UAA.

C. ACD

1. Assist the CD in the preparation of GAI, review of SAI and

conduct of mid-year assessment.
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.
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. 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.
5. Review AAR and CAAR before forwarding to the CD for final
review.
6. Perform such other duties, functions and responsibilities for
the effective implementation of the UAA.

D. ARD

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.
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.
3. Review the RCML submitted by the RSA and submit to RD
for review and transmittal to the agency head.
4. Evaluate the consolidated Matrix prepared by the RSA and
submit to the RD for review.
5. Perform such other duties, functions and responsibilities for
the effective implementation of the UAA.

E. SA

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.

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 2. Assist the CD in the preparation and conduct of mid-year
assessment to be conducted not later than July 31 to
review and revise the initial SAI.
3. Revise the SAI taking into consideration the results of mid-
year assessment and submit to the CD within five days
from the completion of the planning conference for review
and approval.
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.
5. 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.
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.
7. Review AAR prepared by the ATLs under its direct
supervision taking into consideration the SAI and forward to
CD for review. Sign the Independent Auditors Report (IAR).
8. 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 for review.
9. Perform such other duties, functions, and responsibilities
for the effective implementation of the UAA.

F. RSA

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 Observation and
Recommendation (SAOR) to the head of the agency.

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 10 th 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.

3. Review working papers submitted by the audit teams in the

region and issue AOM, NC, ND, and NS, jointly with the ATL.
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 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.

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.

6. Perform such other duties, functions and responsibilities for

the effective implementation of the UAA.

G. ATL

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.

2. Issue AOMs, NS and NDs on transactions with deficiencies

jointly with the SA/RSA.

3. Review working papers of the ATMs, and file and organize

them in accordance with the guidelines of the Commission.

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.

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.

6. Perform such other duties, functions and responsibilities for

the effective implementation of the UAA.