Internal Audit Services

Internal Audit Services
 Ensure that all financial transactions of the University comply with COA and other
government requirement and regulations;
 Ensure that vouchers and supporting papers, records and documents are
reviewed, verified and found to be correct and that fidelity in handling and
safekeeping of them shall be exercised at all times;
 Recommend policies and procedures for effective management and economic

utilization of the resources of the University;
 Review agency organizational structure, staffing, administrative systems and

procedures;
 Oversee and monitor the operations of the offices in the University;
 Discuss audit results with auditee/s before the draft of the report is finalized;
 Prepare report on the results of audit;
 Make appropriate recommendations based on the result of the audit;
 Follow-up action to determine if audit recommendations have been carried out or

not and to inquire for the reasons for non-compliance; and,
 Perform other functions that may be delegated by superiors.
ESTABLISHEMENT OF THE TARLAC STATE UNIVERSITY INTERNAL AUDIT

SERVICE (TSUIAS)
The TSUIAS was created on February 13, 1995 through Administrative Order no.
11, s. 1995 entitled “Creation of an Internal Audit Service (IAS) tasked to promote
efficiency, economy, effectiveness and accountability in the operations of the
University”.
On July 16, 2015, TSU Administrative Order no. 52, s. 2015 entitled “Functions of
the Internal Audit Service” was issued to align the functions of TSUIAS with
Philippine Government Internal Auditing Manual.
Finally, TSU Administrative Order no. 62, s. 2019 entitled “New Functions of the
Tarlac State University Internal Audit Service” was issued to align its functions to
Commission on Audit Resolution no. 2018-007 dated February 1, 2018 which
approves the adoption of Internal Auditing Standards for the Philippine Public
Sector (IASPPS) with Philippine Application Guidelines (PAG).
PURPOSE
Legal Bases
The establishment of the IAS is mandated by Republic Act No. 3456, as amended
by Republic Act 4177, and, Administrative Order Numbers 278 and 70, dated April
28, 1992 and April 14, 2003, respectively. Its creation is likewise supported
by circulars issued by other government agencies such as the Commission on
Audit, Department of Budget and Management and Civil Service Commission.
Mission
TSUIAS shall provide independent and objective assurance and advisory services
to Tarlac State University for the purpose of adding value and helping it achieve
its vision through a systematic and disciplined approach of evaluating and
improving the effectiveness of its governance, risk management and control
processes.
Scope of Work
The TSUIAS undertakes assurance and advisory services to assist Tarlac State

University stakeholders in realizing the university’s vision, mission and goal. It is
for this purpose that it shall conduct periodic and regular assessments
and evaluations of systems and processes of all offices, colleges and units via a
risk-based and methodical approach. It shall likewise conduct activities aimed at
improving the governance, risk management and control processes of the
University. Further, it shall perform other special audit activities which may be
required by the Head of the Agency which are within the scope of this Charter
and within the bounds of IASPPS.
Assurance Services
Assurance services involves the objective examination of evidences relative to the

engagement for the purpose of providing an independent assessment of
governance, risk management and control processes of the University’s. Results
are intended to add value and provide reasonable assurance that governance, risk
management and control processes are being carried out efficiently and
effectively by its colleges, offices and units. The nature and scope
of such engagement shall be determined by the Internal Audit Service.
Advisory Services
This involves the issuance of advisory opinions intended to add value and

improve client’s governance, risk management and control processes. Advisory
services are based on data and/or information provided by the auditee. The
adoption or implementation of advisory opinion whether in whole or in part shall
be the discretion of the University and not the Internal Audit Service where it
does not assume any responsibility. The Internal Audit Service may issue a
subsequent advisory, as addendum to a previous issuance, whenever necessary,
proper, or called for by circumstances. The nature and scope of an advisory
service shall be limited to those agreed upon by the client and the
Internal Audit Service.
AUTHORITY
In the performance of its functions, the Internal Audit Service is authorized

to:
1. have full, free and unrestricted access to any and all the University’s
records, personnel, and physical properties which are intrinsic in
carrying out the objectives of an internal auditing engagement
without violating pertinent laws and policies, particularly those on
confidentiality, probity, decency, and ethical conduct;
2. determine the duration, manner, and techniques to be used in audit
engagements, and the frequency of audit activities;
3. shall allocate funding and resources to accomplish audit engagements
with strict adherence to applicable government auditing and
accounting rules and regulations;
4. request for the provision of needed manpower, equipment, facilities
and tools, necessary and proper to accomplish audit engagements;
and
5. seek the assistance of authorities, experts or professionals from within
or outside the University, as may be deemed necessary to accomplish
audit engagements.
Other actions which are not covered by the foregoing authorities granted by this
Charter require the approval of the University President prior to execution.
ORGANIZATION AND REPORTING STRUCTURE
Organization
The TSUIAS is headed by a Director, whose appointment/designation shall be

approved by the TSU Board of Regents, upon recommendation of the University
President who shall be responsible for over-all internal auditing activities,
professional development and conduct of its personnel, and quality assurance
and improvement of the Office. The Director of the IAS functionally and
administratively reports to the University President.
The IAS is divided into two (2) units namely the Operations Audit Unit, and the
Management Audit and Compliance Unit.
Functions
TSU Administrative Order no. 62, s. 2019 states the following functions of the
Tarlac State University Internal Audit Service:
1. provide assurance services by conducting an objective examination of

evidences for the purpose of providing an independent assessment on
governance, risk management, and control processes of
the University;
2. provide advisory services which are intended to add value and
improve the University’s governance, risk management and control
processes; and
3. perform such other related duties and responsibilities as may be
assigned by the President in compliance with IASPPS with PAG.
INDEPENDENCE AND OBJECTIVITY
To achieve independence and objectivity, the TSUIAS shall be detached from

all functions of routine operating processes such as:
1. conduct of internal quality audit as part of the ongoing

implementation of Quality Management Systems (QMS);
2. participation in procurement procedures, including membership in the
Bids and Awards Committee, its secretariat or technical
working group;
3. review and certification of financial reports before approval by the
agency head;
4. pre-audit of vouchers and countersignature of checks;
5. inspection of deliveries, although TSUIAS may observe the
inspection as part of its internal auditing activities;
6. preparation of treasury and bank reconciliation statements;
7. development and installation of systems and procedures, except in
exceptional cases wherein the internal auditor may assist by way of
giving suggestions;
8. taking physical inventory, although TSUIAS may observe the inventory
taking as part of internal auditing activities;
9. maintaining property records; and
10. all other activities related to operations.

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Internal Audit Services

 Recommend policies and procedures for effective management and economic

 Review agency organizational structure, staffing, administrative systems and

 Oversee and monitor the operations of the offices in the University;

 Prepare report on the results of audit;

 Make appropriate recommendations based on the result of the audit;

 Follow-up action to determine if audit recommendations have been carried out or

 Perform other functions that may be delegated by superiors.

ESTABLISHEMENT OF THE TARLAC STATE UNIVERSITY INTERNAL AUDIT

The TSUIAS undertakes assurance and advisory services to assist Tarlac State

Assurance services involves the objective examination of evidences relative to the

This involves the issuance of advisory opinions intended to add value and

In the performance of its functions, the Internal Audit Service is authorized

ORGANIZATION AND REPORTING STRUCTURE

The TSUIAS is headed by a Director, whose appointment/designation shall be

1. provide assurance services by conducting an objective examination of

To achieve independence and objectivity, the TSUIAS shall be detached from

1. conduct of internal quality audit as part of the ongoing

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