AUDIT Strategy

Step 1- MARINA Central Office through the Administrator will require:

1.1 MARINA Regional Offices (RO) to submit a List of Ships classed with
corresponding Classification Society

1.2 Classification Societies (CS) to submit their respective Register of Ships,

under Oath.

Step 2 – Administrator through the Management Information Systems Service

(MISS) will collate this information to reconcile the data (RO Report and CS
Register of Ships) and report the result to the Administrator

Step 3 – Administrator through the Maritime Safety Service and Enforcement

Service (ES) and Legal Service (LS), which will compose the Audit Team, will
conduct a Random Audit (MARINA Memorandum Circular 165, Section III,
Para. 5) to verify and validate the result of the report of the MISS

Step 4 – In the conduct of the Audit, the Audit Team will verify and validate the
report of the MISS taking into consideration as follows:

4.1 SEARCH for OBJECTIVE EVIDENCE: Secure a copy of their ISO 9001
Certificate as well as corresponding Audit Reports. Ensure the VALIDITY
of the ISO 9001 Certificate and corresponding SURVEILLANCE AUDITS.
(MARINA Memorandum Circular 165, Section V, Para. 3)
4.2 Verify the Working Group of the CS (MARINA Memorandum Circular
165, Section V, Para. 4.
4.3 SEARCH for OBJECTIVE EVIDENCE: Secure a List of the Surveyors and
verify their employment status and records of government mandated
deductions to determine the legality of their employment (most are “ON
PAPER ONLY” employees and to establish the true and real working
group of the CS and their number.
4.4 Based on the number of Surveyors, make calculation to determine
whether the number of Surveyors is reconcilable as against the number
of ships classed.
4.5 Verify the Register of Ships.
4.6 SEARCH for OBJECTIVE EVIDENCE: Secure copies of Survey Reports of
ships (at least 5 Survey Reports) classed in far-flung places i.e.,
Mindanao area (those that requires air travel).
4.7 Based on the Survey Reports, verify records of Surveyor’s expenses i.e.,
air fare, meals, hotel etc.. The objective is to determine ACTUAL conduct
of inspection/survey of the Surveyor.
 4.8 Gather all OBJECTIVE EVIDENCE of the audit and make a report to
accentuate the deficiency and recommend issuance of SHOW CAUSE
ORDER to non-compliant CS.

Step 5 – The Audit Team will submit the Audit Report to the Administrator.

Step 6 – The Administrator will establish a Management Audit Review Committee

(MARC) composed of the Office of the Administrator, Office of the Deputy
Administrator- Operations, MSS Director, ES Director and MISS Director to
review the Audit Report and to make the FINAL Recommendation to the
Administrator regarding the issuance of the Show Cause Order (SCO) to
non-compliant CS.

Step 7- The Administrator shall issue SCO to non-compliant CS. The LS Director will
implement the SCO and to pass JUDGEMENT.

Step 8- The Administrator shall WITHDRAW the ACCREDITATION of non-compliant

CS based on the FINAL Decision thereby ELIMINATING the “BAD EGGS”.