Carino, Patricia Andrea

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AAPRINCIPLES

1. What are the elements of an assurance engagement? Which elements on the

audit performed by COA pertain to each item in an assurance engagement?

There are five Elements of an Assurance Engagement, first is a three-party

relationship which are the practitioner, responsible party, and the intended users. The
COA's purpose is to represent the Philippine government, its subdivisions, agencies,
including instrumentalities, along with government-owned or controlled enterprises with
original charters. The second element is the appropriate subject matter, it can be
composed of different forms and/or characteristics as to what is relevant to the intended
users. COA conducts financial, compliance, and performance audits on the agencies
entrusted to them on a regular basis. In consideration of COA's focus areas and public
engagement, special audits and fraud audits are being done on selected government
entities or subject matters. Thirdly, suitable criteria are the set of standards to be followed
by the practitioner. It helps them have reliable information and allows them to understand
and measure the subject matter fairly and clear. COA services, such as audit and
adjudication, abide to deadlines established by the Constitution, Presidential Decree No.
1445, also known as the Philippine Government Auditing Code, and its own policies, such
as the 2009 Revised Rules and Procedures of the Commission on Audit, auditing
guidelines, and so on. Fourth is evidence, this is where the judgment is verified by
materiality, risk, quantity, and quality of the evidence used when the engagement is
performed. This shows every detail and fact used when doing the said engagement to
have reliable information. Lastly, the assurance report, in other terms, is the conclusion
from the obtained pieces of evidence that contains a clear statement from the subject
matter involved. Additionally, it comprises the responsibilities of the practitioner to
communicate to the ones in charge if it is intended. In partnership with the private sector,
COA assures accountability for public resources, promotes openness, and assists in the
improvement of government operations for the benefit of public.

2. Should an auditor publish the results of an audit report? Why or why not?

When it comes to auditing, there's always the possibility that an auditor will
mistakenly provide a favorable opinion on financial records that contain significant errors.
In my opinion, it is vital to publish such audit reports, particularly those from the
Commission on Audit, because their major objective is to provide financial transparency
inside the government. If an auditor follows the processes outlined in the Auditing
Standards without exception, he cannot be held legally responsible for an accidentally
given opinion that appears to be incorrect. We have the opportunity to observe various
types and forms of audit reports through all forms of communication. This allows us to
see that those reports refer to various audit standards, and that the information structures
of the reports differ in terms of coverage and format. These differences prevent their
users, and as a result, they frequently have no idea what acceptable and appropriate
audit reports should look like. That is why I think if the COA publishes such reports, it is
important that it will be made easier to understand and well explained for the public.
Carino, Patricia Andrea
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AAPRINCIPLES
3. Based on the report issued by COA (please use substantiation), was DOH in
violation of the criteria?

According to the COA's report, the DOH has committed a violation because the
shortcomings appear to be suspicious. In terms of donations, there are some pricey items,
such as the costs of face masks and face shields, as well as other important items for
combating COVID-19. There was still underutilization of inappropriate expenditures, as
well as additional inefficiencies, in addition to those. Another issue is the delayed
distribution of benefits as well as the particular compensation of healthcare employees.
The agencies on the frontlines of the outbreak operation, led by the health department,
are in the spotlight. COA's primary objective is to be an administration that claims to be a
fighter of the anti - corruption and an inspector over fund mismanagement and
inefficiencies. DOH should be honest, as there is a potential misstatement of the financial
accounts and how the budget was managed based on those findings.

4. Does violation, if any, on the criteria pertain to corruption? Why or why not? Is
it identified in the report?

According to my interpretation of the report, it certainly relates to money

laundering. As stated in the report, they falsify the cost of products as well as the division
of the budget. According to a section of the annual audit report provided by the
Commission on Audit, the DOH spent billion in transactions that were not backed up by
needed paperwork, raising questions about the expenses' regularity. It also criticized the
lack of utilization of the pandemic emergency budget, which might have gone toward
much-needed health supplies, equipment, and services for health workers and the
general public during the pandemic's first year. State auditors also found "various flaws"
in the agency's funding totaling P67.3 billion, resulting in "lost chances" in the
government's response to the coronavirus outbreak. Also, they have found doubtful
liquidations that raised such matters. However, the COA does not clearly say that the
DOH has committed corruption and that they also make suggestions for the DOH to
resolve the findings in the audit process, allowing the concerned agency to cooperate and
correct any shortcomings.

5. What actions may the government agencies have undertaken prior to release
of the findings to ensure compliance?

Prior to the findings, government agencies took steps to update the records and
supporting documents in order to complete the audit analysis. Additionally, COA
recommended that the DOH work with them to rectify any problems. However, the results
of the COA, according to the President, only hint to missing paperwork, not outright
corruption. It also contains a more in-depth assessment into the funds' handling. There
are also funds in correspondence with pandemic funds are not included in the the reports.
Moreover, COA stated that inappropriate use of funding resulted in "lost chances" during
a national disaster. As a result, they stated that DOH should be honest in all financial
decisions and cooperate with COA's duties to analyze the funds exclusively.
Carino, Patricia Andrea
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AAPRINCIPLES
References:

Pamintuan, A.M. (2021). The COA Reports. Retrieved from

https://www.philstar.com/opinion/2021/08/20/2121231/coa-reports

Rappler.com (2021). COA finds DOH had P1.2B in unused, undelivered, or

unmaintained equipment. Retrieved from https://www.rappler.com/nation/coa-findings-
doh-unused-undelivered-unmaintained-equipment-2020