NAME OF COOPERATIVE AUDIT COMMITTEE: AUDIT OBSERVATION

PERIOD COVERED: AO # 1

Dear _____

In connection with the conduct of our audit of ____we have noted the audit observations as detailed hereunder. We shall
appreciate your duly signed and dated comments/reply and/or action already taken on the said audit observations , as
well as discuss these matters with you. Thank you.

AUDIT OBSERVATION Management reply, comments or action

Auditor: Audit Committee Chair:

NAME OF COOPERATIVE
COOPERATIVE: M.AUDIT
I. AMECOMMITTEE REPORT
ACCOUNTING OFFICE AUDIT OBSERVATION

ESCUELA DE SAN DIONISIO PERIOD COVERED:

School year June 1 , 2011 – May 31, 2012 AO # 210

Dear MS.____Trinidad
Ms. ____

In connection with
with the
the conduct
conductofofour
ouraudit
auditofof___
___COOPERATIVE,
COOPERATIVE,wewehave noted
have thethe
noted audit observations
audit as as
observations detailed
detailed
hereunder. We shall appreciate your duly signed and dated comments/reply and/or action already
already taken on the said audit
taken on the said audit
observation on
observations , asorwell
before November
as discuss 29,2012.
these mattersThank you.Thank you.
with you.

AUDIT OBSERVATION Management reply, comments or action

Trialhave
We balance is that
noted not properly
followingpresented. We respect
matters with recommend
to
that accounts
your accounts be presentedparticularly
receivable, accordingthose
to thearising
following
order:tuition
from 1. Assets
fees:2. Liabilities 3. Equity 4. Revenue 5.
Expense
1. Reconciliation of Subsidiary vs. General ledger
is not being performed; thus, differences
between subsidiary and general ledger are
bound to get substantial. Initial difference
between subsidiary ledger listing of receivables
vs. general ledger amounted to Php 700,000
plus. Although this difference was settled to a
smaller amount, we have reason to
recommend that a monthly reconciliation will
be beneficial not only for internal control
purposes but for planning and evaluation
purposes as well.
2. Ageing of receivables must always be observed
in order to determine of the allowance for
probable losses is adequate.

Auditor: AUDIT COMMITTEE CHAIR:

NAME OF COOPERATIVE: AUDIT COMMITTEE REPORT AUDIT OBSERVATION

PERIOD COVERED: AO # 3

Dear MS.____

In connection with the conduct of our audit of ___ COOPERATIVE, we have noted the audit observations as detailed
hereunder. We shall appreciate your duly signed and dated comments/reply and/or action already taken on the said audit
observations , as well as discuss these matters with you. Thank you.

AUDIT OBSERVATION Management reply, comments or action

The beginning balance of the inventory should be

closed to Income and expense summary and the
correct ending balance of the inventory should also be
set up. This is a necessary procedure in order to
internally determine the Net Surplus.

Auditor: AUDIT COMMITTEE CHAIR:

NAME OF COOPERATIVE: AUDIT COMMITTEE REPORT AUDIT OBSERVATION

PERIOD COVERED: AO # 4

Dear MS.____

In connection with the conduct of our audit of ___ COOPERATIVE, we have noted the audit observations as detailed
hereunder. We shall appreciate your duly signed and dated comments/reply and/or action already taken on the said audit
observations , as well as discuss these matters with you. Thank you.

AUDIT OBSERVATION Management reply, comments or action

The use of receiving reports, purchase order, and

requisition slip and other supports for procurement is
advised for internal control purposes.

Auditor: AUDIT COMMITTEE CHAIR:

NAME OF COOPERATIVE: AUDIT COMMITTEE REPORT AUDIT OBSERVATION

PERIOD COVERED: AO # 5

Dear MS.____

In connection with the conduct of our audit of ___ COOPERATIVE, we have noted the audit observations as detailed
hereunder. We shall appreciate your duly signed and dated comments/reply and/or action already taken on the said audit
observations , as well as discuss these matters with you. Thank you.

AUDIT OBSERVATION Management reply, comments or action

Inventory tags for property and equipment must be

implemented to distinguish every item in the list of the
company's property and equipment.

Auditor: AUDIT COMMITTEE CHAIR:

NAME OF COOPERATIVE: AUDIT COMMITTEE REPORT AUDIT OBSERVATION

PERIOD COVERED: AO # 6

Dear MS.____

In connection with the conduct of our audit of ___ COOPERATIVE, we have noted the audit observations as detailed
hereunder. We shall appreciate your duly signed and dated comments/reply and/or action already taken on the said audit
observations , as well as discuss these matters with you. Thank you.

AUDIT OBSERVATION Management reply, comments or action

The role of the Internal Audit department of any

business entity is to see to it that Internal Controls are
being carried out effectively and efficiently by the
management. Management is primarily responsible in
seeing to it that these controls measures are being
done on their level. I recommend that the related
duties and responsibilities of the Internal Audit
department as well as management on internal
controls be revisited so that we can implement a much
better Internal Control as well as accounting
information system.

Auditor: AUDIT COMMITTEE CHAIR:

NAME OF COOPERATIVE: AUDIT COMMITTEE REPORT AUDIT OBSERVATION

PERIOD COVERED: AO # 7

Dear MS.____

In connection with the conduct of our audit of ___ COOPERATIVE, we have noted the audit observations as detailed
hereunder. We shall appreciate your duly signed and dated comments/reply and/or action already taken on the said audit
observations , as well as discuss these matters with you. Thank you.

AUDIT OBSERVATION Management reply, comments or action

The last actuarial valuation made by independent

actuaries and employee benefits consultant was dated
July 10, 2008. It is recommended that annual actuarial
valuation be conducted to efficiently monitor any
significant changes in the total annual outlay due to
salary increases, benefit payments, population shifts
and growth of the fund, as well as any recent
government legislation.

Auditor: AUDIT COMMITTEE CHAIR:

NAME OF COOPERATIVE AUDIT COMMITTEE REPORT AUDIT OBSERVATION

PERIOD COVERED: AO #8

Dear MS.____

In connection with the conduct of our audit of ___ COOPERATIVE, we have noted the audit observations as detailed
hereunder. We shall appreciate your duly signed and dated comments/reply and/or action already taken on the said audit
observations , as well as discuss these matters with you. Thank you.

AUDIT OBSERVATION Management reply, comments or action

Bank reconciliation is prepared by the the internal

auditor of the company, however, we have noticed its
late preparation causes delay on financial reports of
the company. I suggest that preparation of bank
reconciliation be prepared by the accounting
department so that reports will be available on a
timely basis. Further, the internal audit department
should be tasked with seeing to it that the bank
reconciliations are being performed on time, accurately
and independently.

Auditor: AUDIT COMMITTEE CHAIR:

NAME OF COOPERATIVE AUDIT COMMITTEE REPORT AUDIT OBSERVATION

PERIOD COVERED: AO # 9

Dear MS.____

In connection with the conduct of our audit of ___ COOPERATIVE, we have noted the audit observations as detailed
hereunder. We shall appreciate your duly signed and dated comments/reply and/or action already taken on the said audit
observations , as well as discuss these matters with you. Thank you.

AUDIT OBSERVATION Management reply, comments or action

There are collections recorded as income such as

receipts from ID's, class pictures and others which
should not be included as income because these
collections are immediately utilized for its purpose and
the school does not generate income from the
transactions. T

Auditor: AUDIT COMMITTEE CHAIR:

NAME OF COOPERATIVE: AUDIT COMMITTEE REPORT AUDIT OBSERVATION

PERIOD COVERED: AO # 10

Dear MS.____

In connection with the conduct of our audit of ___ COOPERATIVE, we have noted the audit observations as detailed
hereunder. We shall appreciate your duly signed and dated comments/reply and/or action already taken on the said audit
observations , as well as discuss these matters with you. Thank you.

AUDIT OBSERVATION Management reply, comments or action

Trial balance is not properly presented. I recommend

that accounts be presented according to the following
order: 1.) Assets 2.) Liabilities 3.) Equity 4.) Revenue 5.)
Expense

Auditor: AUDIT COMMITTEE CHAIR: