The Book on the Nation - State: The Making of the Filipino Nation and Republic Jose V. Abueva

Internal audit, a component of the internal control system, is a strategic function in ensuring good governance throughout the bureaucracy. This Manual is being issued to assist Departments, Government-Owned and/or -Controlled Corporations, State Universities and Colleges, Local Government Units and other agencies of government in establishing, and thereafter strengthening, the internal audit function in their institutions. The Internal Auditor in the Philippine Government has the fundamental role of assisting the Department Secretary or the Governing Body/Audit Committee of the Governing Board in promoting effective, efficient, ethical and economical operations by appraising the adequacy of internal controls, consistent with the National Guidelines on Internal Control Systems (NGICS). The findings on the appraisal of internal controls are provided to said officials/bodies to institute corrective and preventive measures and achieve the agency objectives. The role of the Internal Auditor is not about fault-finding. Neither is it investigative nor punitive. As one of the accountability mechanisms in public service organizations, the Internal Auditor reviews the extent of compliance with laws and policies under the authority of the Department Secretary or the Governing Body/Audit Committee. As a component of the performance management framework of Departments/ Agencies/Government-Owned and/or -Controlled Corporations/Government Financial Institutions, the Internal Auditor assesses the levels of performance against agreed measures, targets and objectives. The internal audit function is separate from, but complementary to, the day-to-day monitoring of internal controls and the conduct of continual management improvement, which are within the responsibility of operating units. The Philippine Government Internal Audit Manual (PGIAM) was developed to empower Internal Auditors in performing their roles. It is divided into two parts: Part I - Guidelines outlines the basic concepts and principles of internal audit, and the policies and standards that will guide government agencies in organizing, managing, and conducting an effective internal audit. Part II - Practices contains user-friendly tools, techniques, and approaches in appraising the internal control systems against strategic objectives, and in conducting management and operations audits. To complement the PGIAM and facilitate the roll-out of the NGICS, Generic Manuals on Controls in the Human Resource Management System, Quality Management System, and Risk Management System will also be issued. An overview of these generic manuals is provided in Appendix A. The Department of Budget and Management, in conjunction with the Office of the President - Internal Audit Office, the Commission on Audit, and the Reference Panel will regularly review these manuals to ensure that these remain updated, relevant and attuned to the developments in the bureaucracy and best practices abroad Keywords: Philippine Civil Service, Philippine Commission on Audit, Finance, Auditing