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CHAPTER XIV

THE INTERNAL AUDIT SERVICE

Legal Bases:
1) R.A. No. 3456
2) R.A. No. 4177
3) Administrative Order No. 278
4) Administrative Order No. 70

OBJECTIVES:

1) GENERAL
The overall objective of the work of the service is to assist the agency management in
achieving an effective and efficient administration of its fiscal and operating function.

2) SPECIFIC
2.1 To evaluate the existing system and identify weaknesses, inadequate/excessive
controls and breakdowns in control and propose/recommends measures to improve
the existing control including the cost and benefits to be delivered;
2.2 To monitor agency’s compliance with University policies, accounting and auditing laws,
rules and regulations;
2.3 To identify laws, regulations and policies which need amendment/revision for the
improvement of operation.
2.4 To review the reliability of financial information and the effective and efficient utilization
of resources and ensure that its assets or resources are accounted/recorded.
2.5 To evolve a system of evaluation and recommend/implement appropriate corrective
action.

ORGANIZATION:

As required by the Internal Auditing Act of 1962 (R.A. No. 3456 as amended by R.A. No.
4177), the Service shall be created in all departments, bureaus and offices.
The Service in the different campuses shall be independent from each other. However,
they shall coordinate with each other in order to achieve their common objectives effectively.

SCOPE OF WORK:

The agency head should define in general terms the nature and scope of work to be
performed by the Service. This is necessary so that the duties and responsibilities, functions and
stature of the Service will be recognized by all components of the agency.

In general, the scope of work of the Service is not restricted to accounting and financial
matters but extend to the review of operating matters. The Service may be also called upon to
perform special assignments by the management or as situation warrants.