STATE ACCOUNTING AND AUDITING

Activity 1:

Based on the government accounting manual, explain the process of the following:

a. Collections & Deposits

Collections is referred to all cash actually received from all sources during a given
accounting period while deposits is a current liability account, in which is stored the amount
of funds paid by customers in advance of a product or service delivery.
b. Cash Disbursements
Cash disbursements constitute payments out of cash advances granted to the regular and
special disbursing officers for personal services, petty expenses and MOOE for field
operating requirements.
c. Check Disbursements
Check Disbursements are used for payment of regular expenses which cannot be
conveniently nor practically paid using the ADAor not authorized to be paid using the Petty
Cash Fund or advances for operating expenses.

Activity 2:
What is a Full Disclosure Policy (FDP)? On your opinion, does it guarantee a clean and
non-corrupt government? Why or why not?

The Full Disclosure Policy (FDP) requires local governments to fully disclose particular financial
documents to keep their constituents informed of how the LGU budget is managed, disbursed
and used. Full disclosure will: Promote honest, transparent, and orderly management of public
funds. Help minimize, if not totally prevent corruption and misuse of public funds

Activity 3:
Identify and briefly explain the stages of an audit. For each stage of audit, cite an
example on how it is conducted in your agency.

1. Audit engagement planning. During this stage, the auditor notifies the client of the audit,
discusses the scope and objectives of the examination in a formal meeting with organization
management, gathers information on important processes, evaluates existing controls, and
plans the remaining audit steps.
2. Field Work (Evidence Gathering). Fieldwork is the name for the audit's evaluation stage. In this
phase, the effectiveness of internal controls and compliance are evaluated. Transactions,
records, and resources are also tested, and additional procedures that are required to carry out
the audit's goals are carried out.
3. Reporting. Every audit ends with a written report that describes the audit's scope, goals,
findings, suggestions for improvement, audit client responses, and corrective action plans.
4. Follow-up. There may be instances where the completion of corrective actions to address an
audit issue must wait until the audit report is complete. In these situations, follow-up on the
previously reported recommendations will be carried out to see if the corrective action plans
have been successfully implemented and if the desired results have been obtained. Depending
on the seriousness of the audit issue, follow-up activities might include staff interviews, reviews
of revised policies or documentation, or a re-audit of the procedures that gave rise to the audit
issue in the first place.