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    Prescribing The Use of IASPPS & ICS For PPS

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    Julie Khristine Panganiban
    The circular prescribes the use of the Internal Auditing Standards for the Philippine Public Sector (IASPPS) and Internal Control Standards for the Philippine Public Sector (ICSPPS) for all government agencies to strengthen governance, risk management, internal controls, and the effectiveness of internal auditing. It provides that the IASPPS comprises Attribute and Performance Standards to guide the professional practice of internal auditing. The ICSPPS establishes a basic internal control framework with objectives for operations, reporting, compliance, and safeguarding of assets. The standards are intended to modernize rules on internal auditing and controls and keep up with developments in the field.

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    Prescribing The Use of IASPPS & ICS For PPS

    Uploaded by

    Julie Khristine Panganiban
    105 views6 pages
    The circular prescribes the use of the Internal Auditing Standards for the Philippine Public Sector (IASPPS) and Internal Control Standards for the Philippine Public Sector (ICSPPS) for all government agencies to strengthen governance, risk management, internal controls, and the effectiveness of internal auditing. It provides that the IASPPS comprises Attribute and Performance Standards to guide the professional practice of internal auditing. The ICSPPS establishes a basic internal control framework with objectives for operations, reporting, compliance, and safeguarding of assets. The standards are intended to modernize rules on internal auditing and controls and keep up with developments in the field.

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    Prescribing the Use of IASPPS & ICS for PPS

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    Prescribing the Use of IASPPS & ICS for PPS

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    The circular prescribes the use of the Internal Auditing Standards for the Philippine Public Sector (IASPPS) and Internal Control Standards for the Philippine Public Sector (ICSPPS) for all government agencies to strengthen governance, risk management, internal controls, and the effectiveness of internal auditing. It provides that the IASPPS comprises Attribute and Performance Standards to guide the professional practice of internal auditing. The ICSPPS establishes a basic internal control framework with objectives for operations, reporting, compliance, and safeguarding of assets. The standards are intended to modernize rules on internal auditing and controls and keep up with developments in the field.

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Download as pdf or txt
    105 views6 pages

    Prescribing The Use of IASPPS & ICS For PPS

    Uploaded by

    Julie Khristine Panganiban
    The circular prescribes the use of the Internal Auditing Standards for the Philippine Public Sector (IASPPS) and Internal Control Standards for the Philippine Public Sector (ICSPPS) for all government agencies to strengthen governance, risk management, internal controls, and the effectiveness of internal auditing. It provides that the IASPPS comprises Attribute and Performance Standards to guide the professional practice of internal auditing. The ICSPPS establishes a basic internal control framework with objectives for operations, reporting, compliance, and safeguarding of assets. The standards are intended to modernize rules on internal auditing and controls and keep up with developments in the field.

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    Republic of the Philippines

    COMMISSION ON AUDIT
    Commonwealth Avenue, Quezon City

    CIRCULAR
    No. : .201 g - 00,3
    Date: NOY 2 1 2018

    To : All Heads of Departments, Bureaus, Offices, Agencies and Instrumentalities


    of the National Government, Chief Executives of Local Government Units
    (LGUs), Managing Heads of Government-Owned and/or Controlled
    Corporations (GOCCs), including their Subsidiaries, Heads of State
    Universities and Colleges, and Heads of Water Districts, COA Assistant
    Commissioners, COA Directors, COA Auditors, and All Others Concerned

    Subject: Prescribing the use of the Internal Auditing Standards for the Philippine
    Public Sector and Internal Control Standards for the Philippine Public Sector

    1.0 . Rationale

    Article IX-O of the 1987 Constitution vests in the Commission on Audit (COA) the
    exclusive authority to promulgate auditing rules and regulations. Further, it
    provides that where the internal control system of the audited agency is
    inadequate, the Commission may adopt such measures, including temporary or
    special pre-audit, as necessary and appropriate to correct deficiencies.

    Section 4 of Republic Act (RA) No. 3456, or the Internal Auditing Act of 1962, as
    amended by RA No. 4177, provides that the Auditor General shall be responsible
    for the. promulgation and enforcement of general policies, rules and regulations on
    internal auditing; and shall also develop for execution, working plans and training
    programs to continuously maintain the effectiveness of these internal audit
    services.

    The Internal Audit Service (IAS) has a vital role in enhancing good governance,
    transparency, accountability, and efficiency and effectiveness of government
    operations, including risk management and the internal control framework of all
    government entities. The existing rules and regulations require all government
    agencies to establish a sound Internal Control System (ICS). The ICS aims to
    achieve four general objectives - operations (orderly, ethical, economical, efficient,
    and effective), reporting (acc~u.nt~ility), compliance (with laws and regulations),
    and safeguarding of resouroe~

    t
    ...
    In view of the lapse of more than three decades since the promulgation of
    Presidential Decree No. 1445 (The Government Auditing Code of the Philippines)
    and more than five decades since the promulgation of RA No. 3456, as amended
    by RA No. 4177, it is deemed necessary to adopt the internal auditing standards,
    update the existing rules and regulations on the internal control system, and keep
    abreast with the recent developments in the internal auditing profession and in the
    internal control system.

    In line with the foregoing, this Commission hereby promulgates and prescribes the
    use of the Internal Auditing Standards for the Philippine Public Sector (IASPPS)
    and Internal Control Standards for the Philippine Public Sector (ICSPPS).

    2.0 Coverage

    The IASPPS provides guidance essential for the professional practice of internal
    auditing to improve the effectiveness of governance, risk management, and control
    processes in all agencies of the government. It comprises two main categories:
    Attribute and Performance Standards, as shown in Annex A.

    On the other hand, the ICSPPS provides guidelines on a basic framework and is
    integrated with the essential management processes of planning, executing, and
    monitoring. It consists of the four general objectives, five components of internal
    control, and levels of agency's structure, as shown in Annex B.

    3.0 Repealinq Clause

    All existing COA circulars, memoranda, and rules and regulations inconsistent with
    this circular are hereby amended/modified accordingly.

    4.0 Effectivity
    NOV 2 1 2018
    This Circu ar shall take effect on --------

    .•....•. ,,;.
    lA}" CONI'IIIIS.SION ON AUDIT
    ': lHl.;.·:, OFIIIC. 0," THI CO"'M,SSIQN SICiltIT .••IlI&T
    -c.i>

    1111111111111111111111 MIC L G. AGUINALDO


    Chairperson ~
    .. ,

    JOJ.tJ~~
    C:~~=~~ ROLAND C. ~OC
    Commissioner

    'Page 2 of 2
    ANNEXA

    INTERNAL AUDITING STANDARDS FOR THE PHILIPPINE PUBLIC SECTOR

    Attribute Standards

    1000 - Purpose, Authority, and Responsibility


    1010 - Recognizing Guidance in the Internal Audit Charter

    1100 - Independence and Objectivity


    1110 - Organizational Independence
    1111 - Direct Interaction with the Head of Agency or the Governing
    Board/Audit Committee
    1112 - Roles of Head of Internal Audit Beyond Internal Auditing
    1120 - Individual Objectivity
    1130 - mpairment to Independence or Objectivity

    1200 - Proficiency and Due Professional Care


    1210 - Proficiency
    1220 - Due Professional Care
    1230 - Continuing Professional Development

    1300 - Quality Assurance and Improvement Program


    131 (I - qequirements of the Quality Assurance and Improvement Program
    1311 - .nternal Assessments
    1312 - External Assessments
    1320 -- Communicating Results of the Quality Assurance and Improvement
    Program
    1321 - use of "Conforms with the Internal Auditing Standards for the
    Philippine Public Sector"
    1322 - Oisdosure of Nonconformance

    Performance Standards

    2000 - Managing the Internal Audit Service


    2010- Planning:A / .
    2020 - '2ommun~~n and Approval of Internal Audit Service Plan
    2030 - esource Management
    2040 - Policies and Procedures
    2050 - Coordination and Reliance
    2060 - Reporting to the Head of Agency or the Governing Body/Audit
    Gommittee ~

    -:
    2100 - Nature of Work
    2110 - Governance
    2120 - Risk Management
    2130 - Control

    2200 - Engagement Planning


    2201 - Planning Considerations
    2210 - Engagement Objectives
    2220 - Engagement Scope
    2230 - Engagement Resource Allocation
    2240 - Engagement Plan and Work Program

    2300 - Performing the Engagement


    2310- Identifying Information
    2320 - Analysis and Evaluation
    2330 - Documenting Information
    2340 - .=ngagement Supervision

    2400 - Com u lea 'jng Results


    2410 -':riteria for Communicating
    2420 -Quality of Communications
    2421 - Errors and Omissions
    2430 - Use of "Conducted in Conformance with the Internal Auditing
    Standards for the Philippine Public Sector"
    2431 - t:ngagemen'c Disclosure of Nonconformance
    2440 - Oisseminatinq Results
    2450 "'- Overall Opinion

    2500 - Monitoring progres~~ /

    2600 - Communicatinq the~ePtanee of RIsks


    ANNEXB

    INTERNAL CONTROL STANDARDS FOR THE PHILIPPINE PUBLIC SECTOR

    General Objectives

    A. Operations Objectives - pertain to effectiveness and efficiency of the agency's


    operations, including operational and financial performance goals. The government
    agency's operations should be orderly, economical, efficient, effective, and ethical.
    These objectives should be consistent with the agency's mission.

    B. Reporting Objectives - relate to internal and external financial and non-financial


    reporting. These objectives may encompass developing, maintaining, and making
    available reliable and relevant financial and non-financial information; fair disclosure
    of information in timely reports to internal as well as external stakeholders; and other
    terms as set forth by regulators, recognized standard setters, or the agency's
    policies.

    C. Compliance Objectives - deal with agency's adherence to laws, rules and


    regulations, contracts, managerial policies, and management directives.

    D. Safeguarding of Assets or Resources Objectives - concern with the safeguard


    of resources against loss, misuse, and damage due to waste, abuse,
    mismanagement, errors, fraud, and irregularities.

    Components

    A. Control environment - sets the tone of an agency, influencing the control


    consciousness of its staff. It is the foundation for all the other components of
    internal control, providing discipline and structure.

    B. Risk assessment - the process of identifying and analyzing relevant risks to the
    achievement of the agency's objectives and determining the appropriate
    response.

    C. Control activities - the policies and procedures established to address risks and
    to achieve the agency's objectives. Internal control activities are responses to risk
    designed to contain the uncertainty of outcome that has been identified.

    D. Information and communication - effective processes and systems that


    identify, capture, and report among other things the operational, financial, non-
    financial, compliance, and other related information in a form/content and
    timeframe inat enable people to carry out their responsibilities.

    E. Monitorireg - th':'A ~ess that assesses the quality of the internal control
    system's (Jerfor~~~er time.

    l
    levels of Agency Structure

    The levels of the agency's structure, where internal control operates, are as follows:

    A. Government Agency refers to any of the various units of the


    government, including a department, commission, bureau, office,
    instrumentality, government-owned and/or controlled corporations and its
    subsidiaries, any self-governing board or commission of the government, a
    local government unit or a distinct unit therein, and any other entity or
    instrumentality of the government.

    B. Division/Office refers to any major functional unit, within the framework of a


    government agency, where functions are defined by law or regulation.

    C. Operating Unit refers to a government institution/unit charged with carrying


    out specific substantive functions or which directly implements program,
    activity, and project of a government agency.

    D. Function refers.~~~A~ program, project, activity, or process in the


    government age~~~
    v

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