Understanding the COA Audit Process

COURSE DESCRIPTION

COA audit plays a crucial role in ensuring that public resources are managed properly. It is not just about compliance, but about building trust in institutions and ensuring that the government delivers on its commitments to the people. With increasing demands for transparency, accountability, and compliance with laws, rules and regulations, audit serves as a powerful tool for governance reform.

This course will enable the participants to have a good understanding of the COA audit process, including its legal basis; types of audits; how audits are executed; how audit results are communicated, responded and reported; and how to prevent and correct deficiencies, in order to promote transparency, accountability, and compliance in the use of public funds.


TARGET PARTICIPANTS

•  Government officials and personnel of National Government Agencies (NGAs),
   Local Government Units (LGUs) and Government Corporations (GCs)
   involved in managing government funds and implementing programs/projects

• Interested private groups or individuals

LEARNING OBJECTIVES

At the end of the session, the participants should be able to: 

• Tell the legal basis and mandate of the Commission on Audit.
• Differentiate the types of COA audits.
• Describe the key phases of the COA Audit Framework and Process
• Recognize the responsibilities of auditees and auditors in the audit process.
• Interpret common audit findings and understand how agencies are expected to respond or
   comply to prevent and correct deficiencies.
• Apply knowledge of the audit process to actual agency practices
   (e.g., preparing documentation, responding to • AOMs/NSs/NDs/NCs, complying with audit recommendations)

METHODOLOGY

1. Webinar or Face to Face Lecture
2. Question and Answer Segment

COURSE OUTLINE

SESSION 1:  3 hours

Module 1: Introduction to COA and Its Mandate
       • Audit Mandate of COA (1987 Constitution, PD 1445)
       • Entities within the jurisdiction of the COA
       • Role of COA in public accountability
       • Overview of auditing principles and standards

Module 2: Types of COA Audits 
       • Financial audit
       • Compliance audit
       • Performance (value-for-money) audit
       • Special audits and fraud investigations

Module 3: The COA Audit Framework and COA Audit Process

      • Phase 1: Strategic Planning and Risk Identification
             - Perform Government Risk based planning
             - Development of COA Annual Audit Plan

 
      • Phase 2: Preliminary Engagement
            - Ensuring Engagement Team's Independence and Compliance with Ethical Standards
            - Defining & Communicating the Terms of Audit Engagement

      • Phase 3: Planning - Agency Audit Planning and Risk Assessment
            - Prepare Agency Audit Work Plan
            - Understand the Agency
            - Identify Significant Agency Risks
            - Conduct Audit Risk Assessment
            - Develop Audit Plan
                 - Determine Audit Scope and Timing
                 - Determine need for specialized skills

      • Phase 4: Execution
            - Design and Execute Audit Tests
            - Evaluate Audit Results
            - Communicating Audit Results
                 - Issuance of Audit Observation Memorandum (AOM); Notice of Suspension (NS),
                   Disallowances (ND), Charge (NC), Summary of Audit Settlement of Disallowances
                   and Charges (SASDC)

      • Phase 5: Reporting
            - Summarize Audit Results
            - Conduct Exit Conference
            - Prepare Audit Report
                 - Types of Audit Reports
                 - Linkage of AOMs, NSs/NDs/NCs to the Annual Audit Report (AAR)
                 - Types of Auditor's Opinion or Conclusions and its relation to good governance

      • Phase 6: Quality Control


SESSION 2:

Module 4: Myths and Facts about COA

Module 5: Common Audit Findings
       • Examples of typical audit issues/ audit findings

Module 6: Responding to COA Findings and How to Prevent or Correct Deficiences
       • How to prevent or correct deficiences (Roles of Agency personnel)
       • How to respond to AOMs
       • Remedies for and settlement of NS/ND/NC
       • Decisions and appeals on ND/NC
       • Proceedings before the Director, Assistant Commissioner and Commission Proper
       • Finality and Enforcement of Decisions
       • Dropping from the Books of Accounts of Settled ND/NC
       • COA Order of Execution (COE)
       • Remedies for Non-Compliance with the COE
       • Opening/ Revision of Settled Accounts