Prepared and Presented by: Danilo V. Cabug, Consultant

National Audit Authority

The Evolution of Auditing

Prepared and Presented by: Danilo V. Cabug, Consultant

Rationale and Objectives

Why is there a shift to Risk-Based Audit Approach?

The RBA will:

- align the audit process more closely with the government’sneeds to improve the governance structure of the auditee particularly in the area of financial reporting;- provide users of the financial statements a higher level of assurance that the auditee’s processes are designed and operating effectively;- enable the performance of a comprehensive audit of accountsand use of funds and property;

Prepared and Presented by: Danilo V. Cabug, Consultant

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enable auditors to check compliance of auditees on laws,circulars and regulations, and will determine whether related compliance risk is properly addressed;

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strengthen accountability in the auditees;

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recommend numerous value-added deliverables and measures to improve the efficiency and effectiveness of government operations noted in the course of the financial audit.Why is there a shift to Risk-Based Audit Approach?

Rationale and Objectives