Special Assignment Internal Audit

The document discusses the elements of an assurance engagement as they relate to an audit performed by the Commission on Audit (COA) of the Department of Health (DOH). It indicates that the DOH violated criteria such as accounting errors and omissions based on the COA annual report. While not stated directly, the errors could indicate corruption. Government agencies should ensure compliance by completing required reports and financial statements for COA.

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Reyne Yusi

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Special Assignment Internal Audit

Uploaded by

Reyne Yusi

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Yusi, Reyne L.

A-333
Internal Auditing: Principles of Auditing and Assurance Services
1. What are the elements of an assurance engagement? Which elements on the
audit performed by COA pertain to each item in an assurance engagement?
 A three-party relationship, involving: the practitioner, a responsible party
and intended users. The practitioner is the COA itself, the responsible
party is the entity or organization being audited such as government
agencies, and the intended users are the public.
 Appropriate subject matter. The utilization of the budget used by DOH in
the year 2020
 Suitable criteria. International Public Sector Accounting Standards
 Sufficient, appropriate evidence to support the conclusion. The figures and
financial statements as of December 31, 2021 given by DOH to COA
 A conclusion contained within a written report. The Independent Auditor’s
Report
2. Should an auditor publish the results of an audit report? Why or why not?
Yes, because as an element of assurance engagement, the general public
is one of the main intended users of these reports, it is necessary to release the
report in public, or in other words, publish it to the general access. It is for the
people to know the status or to know what is really happening, especially if it
involves a government agency.
3. Based on the report issued by COA (please use substantiation), was DOH in
violation of the criteria?
As written in the executive summary and the part II of the annual report, it
is evident that DOH violated the criteria such as Accounting errors and
Omissions, misstatements in assets, liabilities and equity, unaccounted balances,
error in allocation of income, and a lot of deficiencies in the amounts of its
different accounts.
4. Does violation, if any, on the criteria pertain to corruption? Why or why not? Is it
identified in the report?
Even if it not straightforwardly stated in the reports, we can’t help but
think,” why do they have to present a report with such enormous errors and
misstatements?” And with the reasoning they give the auditors and to the public
are irrelevant to what is being asked to them. And with that we can infer that this
is one way to say that this involves corruption. Because if not, it would not result
to material errors.
5. What actions may the government agencies have undertaken prior to release of
the findings to ensure compliance?
For them to ensure compliance, they make sure to complete the needed
reports and financial statements required by COA for them to submit. Section
Yusi, Reyne L.
A-333
Internal Auditing: Principles of Auditing and Assurance Services
104 states the Records and reports required by primarily responsible officers.
The head of any agency or instrumentality of the national government or any
government-owned or controlled corporation and any other self-governing board
or commission of the government shall exercise the diligence of a good father of
a family in supervising accountable officers under his control to prevent the
incurrence of loss of government funds or property, otherwise he shall be jointly
and solidarily liable with the person primarily accountable therefor. The treasurer
of the local government unit shall likewise exercise the same degree of
supervision over accountable officers under his supervision, otherwise he shall
be jointly and solidarily liable with them for the loss of government funds or
property under their control.