Page 153 - ADMINISTRATIVE MANUAL

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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.