I. Definition of Terms
Mandate: The legal authority granted to the Commission on Audit (COA) by the 1987 Philippine Constitution to audit government finances and recommend efficiency improvements.
Citizen's Charter: An official document outlining government services, processes, requirements, and timelines to ensure public understanding.
Financial Audit: An examination to verify the accuracy and compliance of an entity’s financial reports with applicable regulations.
Performance Audit: A review assessing the efficiency, economy, and effectiveness of government programs and entities.
Compliance Audit: An evaluation of adherence to legal, regulatory, and financial requirements within audited organizations.
Complex Transactions: Applications requiring detailed evaluation due to intricate or multifaceted issues.
Simple Transactions: Applications that involve straightforward ministerial action or resolution.
Fraud Audit: Investigations focused on detecting fraudulent use or mismanagement of government funds.
Public Accountability: The responsibility of government entities to justify their use of public resources.
Transparency: Ensuring accessible and clear processes to facilitate public oversight of government operations.
Dormant Accounts: Financial accounts that remain inactive for extended periods, potentially subject to write-offs.
Disallowance: The act of declaring specific government expenditures improper or excessive.
Notice of Suspension: A temporary halt on a government transaction pending resolution of audit issues.
Notice of Charge: A formal communication identifying under-collected government revenues.
Special Audit: A targeted review of specific government programs or funds upon request.
Technical Services: COA's provision of expert support to design and improve internal government control systems.
Government Auditing Code: The legal framework (Presidential Decree No. 1445) governing COA audits.
Legal Retainer Review: COA's evaluation of government agency contracts with private lawyers.
Annual Audit Report (AAR): A comprehensive yearly assessment of a government agency's financial and operational performance.
Engagement Letter: A formal document detailing the scope and terms of an audit assignment.
Risk Assessment: The evaluation of potential risks that could compromise the accuracy and integrity of financial records.
Audit Observation Memorandum (AOM): A document summarizing issues and recommendations identified during an audit.
Quality Assurance Review: Internal evaluations ensuring COA’s auditing methods meet established standards.
Ease of Doing Business Act: Republic Act No. 11032, which aims to promote efficient public service delivery.
Capacity Building: COA-led training initiatives designed to enhance the financial management skills of government personnel.
II. Enumeration
1–5. Mandates of COA (Article IX-D, 1987 Constitution)
Examine, audit, and settle accounts related to government revenue and expenditures.
Promulgate accounting and auditing rules to prevent irregularities.
Submit annual financial reports to the President and Congress.
Recommend measures to improve government operations.
Maintain and preserve government accounting records.
6–9. Main Types of Public-Sector Audits (ISSAI 100)
Financial Audit.
Performance Audit.
Compliance Audit.
10–14. Steps for Conducting a Financial Audit
Submission of financial reports by the auditee.
Entrance conference.
Audit planning and risk assessment.
Execution of the audit program.
Exit conference and final report submission.
15–20. COA Service Pledge
Discharge duties with competence and professionalism.
Uphold ethical standards.
Ensure public interest over personal gain.
Advocate transparency and accountability.
Incorporate social and environmental responsibility.
21–25. Key Features of COA Vision
Trustworthy.
Respected.
Independent.
Enabling partner of government.
Focused on improving Filipino lives.
III. Acronyms
COA - Commission on Audit
RA - Republic Act
PD - Presidential Decree
SMR - Statement of Management Responsibility
AAR - Annual Audit Report
ND - Notice of Disallowance
NS - Notice of Suspension
NC - Notice of Charge
FCER - Fraud Case Evaluation Report
ISSAI - International Standards of Supreme Audit Institutions
LGU - Local Government Unit
NGO - Non-Governmental Organization
G2C - Government to Client
G2G - Government to Government
eNGAS - Electronic New Government Accounting System
SSS - Special Services Sector
ATL - Audit Team Leader
SA - Supervising Auditor
RD - Regional Director
CD - Cluster Director
IV. Trivia
What is the primary mandate of the Commission on Audit (COA)?
B. Audit and settle all government accounts.
Which document must auditees submit to initiate a financial audit?
C. Complete set of financial statements.
What does the acronym ISSAI stand for?
C. International Standards of Supreme Audit Institutions.
What are the three main types of audits conducted by COA?
C. Financial, Performance, and Compliance Audits.
What is the name of the system COA uses for electronic accounting and budgeting?
A. eNGAS.
What is the primary goal of a performance audit?
C. To assess economy, efficiency, and effectiveness of government programs.
Which Philippine law mandates the Citizen’s Charter?
D. Republic Act No. 11032.
What document contains COA’s comprehensive audit guidelines and processes?
C. Government Auditing Code of the Philippines.
What type of audit examines compliance with laws, rules, and regulations?
A. Fraud Audit.
What is the vision of COA as stated in the Citizen’s Charter?
C. A trustworthy, respected, and independent audit institution.
