Professional Documents
Culture Documents
Coa C95-007 PDF
Coa C95-007 PDF
95-007
May 30, 1995
1.0 RATIONALE
With the promulgation of COA Resolution No. 95-208 asserting the power, authority, and
duty of the Commission on Audit to examine, audit, and settle all accounts pertaining to
the revenues and receipts of government agencies and subdivisions, it has become
necessary to issue these general guidelines and procedures for the implementation of
the auditors in the field.
The legal basis of this Commission to undertake audit of revenues and receipts is the
1987 Philippine Constitution which provides, as far as relevant, as follows:
2.1 The Commission on Audit shall have the power, authority, and duty to examine,
audit, and settle all accounts pertaining to the revenue and receipts of, and
expenditures or uses of funds and property, owned or field in crust by, or pertaining
to, the Government, or any of its subdivisions, agencies, or instrumentalities
including government-owned and controlled corporations xxx (Sec. 2[1] Article IX-
D, Philippine Constitution)
2.2 The Commission shall have exclusive authority, subject to the limitations in this
Article, to define the scope of its audit and examination, establish the techniques
and methods required therefore, and promulgate accounting and auditing rules and
regulations xxx (Sec. 2[2], Ibidem).
2.3 No law shall be passed exempting any entity of the Government or its subsidiary in
any guise whatever, or any investment of public funds from the jurisdiction of the
Commission on Audit (Sec. 3; Ibid).
3.0 SCOPE
This Circular shall apply to the audit of revenues and receipts in all sectors of
government whether national, local or corporate. The provisions of Section 29 of the
State Audit Manual, and such other COA issuances on the matter, shall continue to be
observed in the audit of revenues and receipts.
4.0 DEFINITION OF TERMS
4.2 Tax Docket - is a compilation of tax documents and other financial records of a
taxpayer pertaining to a particular tax for a given period, usually consisting of tax
returns or declarations and other related documents necessary in the computation
of the tax.
4.3 Assessment - is the process of determining the base of the revenue or other
receipts as basis for the computation of the amount due.
5.1 The audit of revenues and receipts is conducted to provide an examination of the
procedures followed by the assessing and collecting officers, to ensure that the
government is receiving the correct amount of revenues and other receipts due it.
5.3 The general objectives of a revenue and receipts audit is to determine if the
assessing and collecting officers observed the proper systems and procedures
as prescribed by law and regulations.
5.4 The audit of assessment, collection and recording of revenues and receipts shall
invariably be confined to available documents/records in the custody of the
audited agency concerned, or in other government offices.
5.5 COA auditors and other personnel assigned to the audit of revenues and receipts
are hereby strictly prohibited from directly or indirectly communicating with the
taxpayers, such as visiting their places of business for purposes of examining the
latter's books of accounts and other records. This, however, does not preclude
the auditor from sending confirmation letters by mail, as required by generally
accepted auditing standards.
5.6 The evaluation of the internal controls of the revenue administration system, as
well as the verification of the collections and its reporting and recording, shall be
undertaken by the resident auditing unit.
5.7 However, the examination of the tax assessments and receipts for the purpose of
ascertaining compliance with the requirements of laws and regulations may be
assigned to, or undertaken by a special team to be placed under the direct
supervision of a COA Director, at the discretion of the COA Chairman.
5.9 Whenever the law grants discretion to the assessing and collecting officers, the
reasonable exercise thereof shall be respected by the examining auditors
provided done within the bounds of the implementing rules of the revenues
agency concerned.
5.10 Audit reports embodying the findings and recommendations of the examining
auditors shall be submitted directly to the head of the revenue agency
concerned.
5.11 The audit and examination as herein required shall be strictly on post audit basis,
and consequently shall be undertaken only after the tax or receipts shall have
been paid. In case of controverted assessments, or whenever the taxpayer
questions the payment of the tax, the auditor concerned shall invariably refrain
from examining the transaction.
5.12 In case the audited agency refuses to give COA auditors access to the
assessment and other tax records in the custody of the agency concerned, the
auditors shall issue subpoena or subpoena duces tecum, pursuant to Section 40
(1) of P.D. No.1445. In the event of non-compliance, a report thereof shall be
submitted to the COA Chairman for his appropriate action.
5.13 Except as otherwise provided under existing COA regulations, no auditor or other
COA personnel is allowed to divulge to any person or make known in any other
manner than may be provided by law information regarding the business,
income, or estate of any taxpayer, the secrets, operation, style or work, or
apparatus of any manufacturer or producer, or confidential information regarding
the business of any taxpayer, the knowledge of which was acquired by him in the
discharge of his official duties.
6.1 In the event an agency head, or any public officer for that matter, refuses to give
COA auditors access to public records which are in his custody and essential in
the conduct of the audit, the Commission on Audit through the Commission
Proper may hold him in contempt pursuant to Sec. 40 (2) of P.D. No. 1445. The
Commission may, if the situation warrants, also file a case against the official
concerned for violation of Sec.3 (a) of the Anti-Graft and Corrupt Practices Act
(R.A. No.3019). It may further institute administrative disciplinary action either
with the Civil Service Commission under the Civil Service Law, or with the
Presidential Commission Against Graft and Corruption in the case of presidential
appointees under Executive Order No. 151, series of 1994.
6.3 Any auditor or other COA personnel who violates the provisions of Sec. 5.10 of
this Circular or in any manner divulge business or trade secrets or any
confidential information regarding the business of any taxpayer, the knowledge of
which was acquired by in him the discharge of his official duties, shall be held
criminally liable under the Anti-Graft and Corrupt Practices Act. In addition, he
shall be subject to such civil liabilities and administrative disciplinary action as
may be provided for by law and regulations.
6.4 Any other violation of this Circular other than those mentioned in the preceding
paragraphs, shall be subject to such disciplinary actions as may be provided for
under existing laws and regulations.
All circulars, memoranda and other issuances which are inconsistent with this Circular
are hereby amended or repealed accordingly.
8.0 EFFECTIVITY