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BAICS Communications

This memorandum summarizes an internal audit engagement plan for assessing an agency's program, project, system, or process. The plan outlines the introduction, audit objectives, scope, criteria, methodology, and resources for the audit. The objectives are to evaluate compliance with laws and procedures and assess performance and conditions against standards. The scope specifies the timeframe, locations, and processes to be examined. The criteria are the standards used for assessment. The methodology describes the audit activities. Resources include policies, objectives, systems, staff, and timelines.

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Denmark Costanilla
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312 views4 pages

BAICS Communications

This memorandum summarizes an internal audit engagement plan for assessing an agency's program, project, system, or process. The plan outlines the introduction, audit objectives, scope, criteria, methodology, and resources for the audit. The objectives are to evaluate compliance with laws and procedures and assess performance and conditions against standards. The scope specifies the timeframe, locations, and processes to be examined. The criteria are the standards used for assessment. The methodology describes the audit activities. Resources include policies, objectives, systems, staff, and timelines.

Uploaded by

Denmark Costanilla
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd
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[Date]

MEMORANDUM

For : [Agency Principal]

From : [Head of Internal Audit]

Subject : CONDUCT OF NON-INTERNAL AUDIT TASKS

Pursuant to item 5.7, Chapter 1, Part I of the revised Philippine Government


Internal Audit Manual (PGIAM), which was issued by the Department of Budget
and Management (DBM) through Circular Letter No. 2020- , an internal audit unit
(IAU) of a government agency should refrain from participating in the operations
and processes of another unit as this is in conflict with the post-audit function of
the internal audit. Further, the IAU is not responsible for or required to participate
in activities which are essentially part of the regular operating functions or the
primary responsibility of another unit in the organization.

May we highlight that among the non-internal audit tasks being referred to is/are
the [cite here the non-internal audit task(s) being instructed to be undertaken].

Relative thereto and in compliance with said DBM issuance, we are


constrained from undertaking the foregoing task(s) being assigned to
our office.

The undersigned is ready to further discuss the matter more should the [Agency
Principal] have questions or items for clarification on the same.

For consideration and/or further instruction. Thank you.

Head of Internal Audit


Internal Audit [Nomenclature, e.g., Service] Order No. , s. [Year]
Date:

Subject : ESTABLISHMENT OF PLANNING TEAM FOR THE CONDUCT


OF BASELINE ASSESSMENT AND INTERNAL CONTROL
SYSTEM (BAICS)
As part of the strategic planning activities of the IAS for [indicate the three-year
period], a Planning Team is hereby created to lead in the conduct of the BAICS of
the [agency].

Relative thereto, the following IAS personnel are hereby assigned to constitute
the Planning Team:

Team Leader:
Alternate Team Leader:
Members:

The Planning Team shall perform planning activities, including, but not limited to
the following:

a. Evaluation and analysis of information/documents that are relevant in the


documentation of the five (5) components of the internal control system;
b. Preparation and administration of an Internal Control Questionnaire on key
processes of critical operating and support systems of OPS, support to
operations (STO), and general administration and support (GAS) of all agency
programs and projects;
c. Review of key processes and controls in the OPS, STO and GAS;
d. Evaluation of controls using flowcharts and narrative notes;
e. Conduct of walkthrough;
f. Testing of controls;
g. Conduct of interim analysis; and
h. Preparation of various reports and plans, including the Interim Report,
Baseline Assessment Report, Strategic Plan and Annual Work Plans.

For compliance.

Head of Internal Audit


[Official Agency Letterhead]

AUDIT ENGAGEMENT PLAN


As of [Date]

Agency Program/Project/System/Process:

Type of Audit:

I. Introduction

Contains a brief description of the management controls, i.e., the plan of organization
and all the methods and measures adopted within an agency to ensure that resources
are used consistent with laws, regulations and managerial policies; resources are
safeguarded against loss, wastage and misuse; financial and non-financial information
are reliable, accurate and timely; and operations are economical, efficient, ethical and
effective
II. Audit Objectives

Ideally, an audit objective would be consistent with the achievement of the objectives of
the organization/program/project.

Examples:

 Compliance audit – to assess compliance of controls with laws, rules, methods and
procedures
 Management audit – to ascertain if the operations has its measurement and
evaluation system which will be used to review and improve performance
 Operations audit – to determine if the agency program/project/system/process is
achieving its target

III. Audit Scope

Framework or limits of the audit. Audit scope is the extent and boundaries of an audit. It
must be consistent with the audit objectives. Audit scope includes timeframe, locations
and major processes/operating systems/support systems or key controls that will be
covered by the audit to achieve audit objectives.
OFFICE OF THE CITY MAYOR
Internal Audit Services Section
New City Hall, Sitio Cabcabon, Banga, Bayawan City,
Negros Oriental. 6221 Philippines
Phone nos.531-0020/21 (local-1015)
www.bayawancity.gov.ph

IV. Audit Criteria

Set of reasonable and attainable standards of performance, statutory or managerial


policies, laws and regulations, etc.; Criteria are standards against which adequacy of
performance and conditions can be assessed.

V. Audit Methodology

Statements that describe the activities that will be undertaken in conducting the audit

VI. Resources/Inputs

Statutory policies, mandates, managerial policies, government regulations, established


objectives, systems and procedures/processes, human resources, materials, equipment,
timelines etc.

Prepared by: Reviewed by:

Name(s) of Team Member(s) Name of Team Leader


Date Date

Approved by:

Head of Internal Audit


Date

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