Internal Audit Manual for Local Government Units

INTERNAL AUDIT MANUAL FOR

LOCAL GOVERNMENT UNITS

Prepared by:
Arana, Quenne Ann
Larong, Aihzel
Minglana, Mitch T.
Montilla, Bambie Y.
Montilla, Bamboo Y.
Rubi, Jechel Marie

September 13,2020
TABLE OF CONTENTS
Internal Audit Manual for Local Government Units

I. Purpose…………………………………………………………………3
II. Internal Audit Function……………………………………………...…4
III. Organizational Structure and Responsibilities………………………5
IV. General Objectives of internal control………………………………..6
V. Key audit procedures:………………………………………………….7
 Tools and system………………………………………………..8
 Audit planning and risk assessment process………………...9
 Audit resources planning and budgeting……………………10
VI. Scope of internal audits
VII. Use of external specialists
VIII. Cooperation with external auditors
IX. Criteria for calculation of audit days
X. Conducting audits
XI. Audit fieldwork
XII. Reporting of audit and results
XIII. Acceptance of risk management by senior management
XIV. Types of audit
XV. Quality assurance

ANNEX II: Manuals policy and guidelines

 Training policy
 Team risk guidelines

ANNEX II: International Standards

 Conflict of interest
 Objectivity and impartiality
 Professional competence
 Authority and confidentiality
 Code of conducts of ethics

I. Purpose
Internal Audit Manual for Local Government Units

This Internal Audit Manual is established for local government

units- in general, to adhere to the policies and guidelines as stated in
this manual. Moreover, this will serve as their outlines of authority and
scope of the internal audit function.

This manual will encourage any neither particular provinces nor

municipalities to adopt the internal audit manual for local government
units in order o maintain a sound and effective internal audit
function/services inside their community.

II. Internal Audit Function

 Internal Audit Manual for Local Government Units

The internal audit function is to provide quality of assurance that

a certain organization is operating effectively. Hence, they will also
ensure that the internal control system is adhering to the policies and
guidelines of their respective workplace.

Inevitably, LGU’s are quite hard to manage since it is

accomplished by many people so it really needs to establish policies
and guidelines in order to maintain a control environment.

So, the key attributes of establishing the internal audit are as

follows:

Internal Audit
Function

Provide Provide a Continuous Provide a To provide a

Objectivity and regular and monitoring of comprehensive presence of
independence timely internal audit and balanced internal audit
with regards to communication effectiveness for audit plans assessment
their work duties of findings and the local linked to LGU mechanism.
and recommendatio government management of
responsibilities. ns; also provide units. risks.
systematic
conduct of
follow ups on
audit
Internal Audit Manual for Local Government Units