Saint Louis College

Carlatan, City of San Fernando, La Union

College of Commerce, Secretarial and Accountancy

EMANCIPATORS MULTI-PURPOSE COOPERATIVE

An Internal Control Study

Presented to the Faculty of the

College of Commerce, Secretarial and Accountancy

In Partial Fulfillment of the Requirements for the Course

Audit 1a & b: Auditing and Assurance Service, pt.1

Submitted by:

Abaga, Jolina Grace G.

Abobo, Danah Mae P.

Costales, Daphne Maureen B.

de Austria, Via Samantha B.

Lobingco, Kimberly Jean C.

Submitted to:

Mrs. Merish Dinah A. Rebuldela, CPA, MBA

encouragement and financial help to the researchers during the course of completion of this study. for their never-ending support. strength. Rebuldela. MBA. determination and wisdom to the student auditors in order to face all the challenges and problems encountered in the completion of this academic endeavor. In particular. Merish Dinah A. Madeline R. February 2017 ACKNOWLEDGMENT This internal control study is made possible with the combined efforts of the members of the group. Mrs. for their trust and confidence in sharing the necessary information needed by the members. love. Corazon C. Mrs. the members would like to thank the following:  To the Almighty Father who imparted courage. especially to Mrs. Ancheta and Engr. for her unwavering encouragement.  To the student auditor’s parents. Melchor P. support and love for her students. CPA. Tanguilig. Dorao. The members would like to acknowledge the different people and entities who became part of the realization of the member’s goal. Mrs. Daquep. each of these people generously shared their guidance and time to the members.  To the management of the Emancipators Multi-Purpose Cooperative. Leovic J. and also for their hospitality to the members despite their schedules. 2 .  To the adviser.

The Student Auditors DEDICATION 3 . who gave them solace and succor to accomplish this study. To the student auditor’s peers.

information and communication processing. control activities and monitoring by adequate planning and performance of audit procedures like 4 . risk assessment. enforcement of rules and regulations and employment of accounting system and information processing. This study focuses only to the evaluation and assessment of the components of internal control which are control environment. SCOPE AND DELIMITATION We have studied the nature of business operation of Emancipators Multi- Purpose Cooperative to determine the effectiveness of its internal control system as to adherence to policies and standards.

ii Dedication…………………………………………………………………………….…………………………………..vii List of Tables…………………. inquiry and inspection to provide reasonable assurance in giving an opinion as to whether the operation procedures are effective and viable.observation.iii Scope and Limitation…………………………………………………….…………..v List of Figures…………………………………….……………………………………………………....i Acknowledgement…………………………………………………………………….viii 5 .. TABLE OF CONTENTS Title Page……………………………………………………………………………….iv Table of Contents……………………………………………………….…………. This study gave emphasis only in one activity of the cooperative which is their Lending Activity.

Accounting Operations…………………………………28 A. Services Offered………………………………………….…………. Brief History………………………………………….8 Chapter 2 Internal Control and Company Business Operations……….. Information and Communication System………23 D.24 E.Audit Plan………………………………………………………………………. Weaknesses. Vision and Mission Statement………………….1 I.. Monitoring…………………………………………. Opportunities and Threats Analysis …………………………………………..………28 B. Purchases and Disbursement Cycle………. Location and Contact Information…………………….10 I.…39 Chapter 3 Strengths...2 II.……ix Chapter 1 Company Profile……………………………………………..……35 C. Internal Control………………………………………….4 III. Control Environment………………………………...27 II.22 C.11 B. Control Activities……………………………………. Revenue and Collection Cycle……………. 6 ..10 A.…….….5 IV.…….. Payroll Cycle………………………………………...42 Chapter 4 Recommendations and Conclusion…………………………….. Risk Assessment…………………………………….

A. Questionnaires…………………………………………………………... B. E.. Documents……………………………………………………………….…...……………………….APPENDICES……………………………………………………………………. Documentations……………………………………………………. Endorsement Letter…………………………….. C. Engagement Letter……………………………………………………. D... Curriculum Vitae LIST OF FIGURES 7 .

00…….1 Organizational Structure…………….Figure Title Page 1.000.00………...…37 2.…………………….4 1.3 Revenue Cycle for Loan more than Php 100.000.2 Location Map…….…………………………………………….1 Company Logo……………………………………………………….5 Payroll Cycle………………………………………………………….2 Revenue Cycle for Loan less than Php 100...….……..4 Purchase and Disbursement Cycle………………………….8 2.14 2.40 8 ..…31 2.…33 2...

ix 1.……….. LIST OF TABLES Table Title Page 1 Audit Plan……………………………………………………….5 9 .….….1 Types of Loan Offered………………………………….....

ABOBO. Members: ABAGA. COSTALES. Danah Mae P. LOBINCO. Kimberly Jean C. Audit Plan Subject Matter: Emancipation Muti-Purpose Cooperative The Student Audit Team: Team Leader: DE AUSTRIA. Via Samantha B. Objectives: To be able to plan the study of Emancipation Muti-Purpose Cooperative. Daphne Maureen B. Jolina Grace G. Table 1 Audit Plan Date Specific Activity Key Estimated Objective Person Expenses 10 .

November To finish. 2016 letter and engagement engagement letter. Company Business Operations 11 . approval for the study of their internal control.00 December endorsement letter and 1. questionnaires for questionnaires 100.00 2016 information for Company gathering for Profile and Company Profile Business (Chapter 1) and Operations. letter. December To finish the Make All Php 26-30. submit Give the All Php 28 – and distribute the endorsement 125. company to study company and 2016 and ask for their ask for approval. Involved November To search for a Find a All Php 80.00 21-26.

date for interview. endorsement endorsement 2017 letter.00 12 . engagement letter and letter to new engagement company and ask letter and for scheduled scheduled a interview. 2017 company to study company and 200.00 10-13. January To gather All Php 2-6. January To gather Interview the All Php 70. 2017 information for 150. January To distribute Give the All Php 50. January To search for a Find a All Php 7-9.00 and ask for their ask for approval. (Chapter 2). approval for the study of their internal control.00 Company Profile and Business Operations.

24. February To be able to Able to finish All Php 10.00 2017 Company Profile 2. (Chapter 1) and Company Business Operations (Chapter 2) of the study.00 (Chapter 3) and Conclusion and Recommendation s (Chapter 4) of the study. 100. February To be able to Able to finish All Php 50. January To be able to Able to finish All Php 27-29. finish the Chapter 1 and 100. 2017 information for manager.00 13. 2017 finish Chapter 4 Chapter 4. 13 . Company Profile supervisor and Business and staff. Operations. 2017 finish the SWOT Chapter 3.

2017 final manuscript.00 15. works and print. proofread the study. February To be able to Finalized the All Php 50. February Find an expert to Found All Php 50. February Submission of Passed the All Php 0. study. of the study.00 study and have a print the hard copy. 2017 complete the complete and 100. February To be able to Able to All Php 16. 2017 finalize the paper paper works.00 17. 14 .00 14. 2017 proofread the someone to study. study.