Audit Plan

for
UM Tagum College
Fiscal Year Ending
May 31, 2023
I. OVERVIEW OF THE AUDIT PLAN
The mission of the Audit Team is to protect the public interest and increase credibility of UM
Tagum College Financial Statements. A key component of this mission is the team’s annual
audit plan, which lists the programs and topics that are prioritized for audits in the coming
year.
The annual audit plan demonstrates two key philosophies of the Audit Team: our
commitment to transparency and our emphasis on being agile and responsive to critical
issues facing the state. We are committed to completing the audits listed in the plan;
however, our risk assessment process is continuous. The plan is a flexible document, and
we will redirect audit resources as necessary to address critical issues facing the state

II. AUDIT OBJECTIVES

Our audit is directed towards delivering our services at three levels:
FOR THE STAKEHOLDERS - independent opinions and reports that add credibility to
financial information released by the UM Tagum College.
FOR THE AUDIT COMMITTEE - assistance to Committee on Audit in discharging its
corporate governance and compliance responsibilities.
FOR THE MANAGEMENT - observations and advice on financial reporting and business
issues from senior professionals who have in-depth understanding of your business and
industry, including sharing experience on industry best practice issues.
Our overall audit objectives are:

 to express an independent opinion as to whether:

 the financial statements present fairly, in all material respects, the financial position of
the UMTC as at May 21, 2023, and the results of its financial performance, its cash
flows and the comparisons of budget to actual amounts for the year then ended in
accordance with generally accepted accounting principles (GAAP) and the Philippine
Financial Reporting Standards (PFRS)
 the financial statements have been prepared in accordance with the stated
accounting policies;
 the accounting principles have been applied on a basis consistent with that of the
preceding financial period;
 the transactions that have come to our notice during the audit of the financial
statements have, in all significant respects, been made in compliance with the
Financial Regulations and legislative authority.

 to make observations with respect to the efficiency of the financial procedures, the
accounting system, the internal financial controls and, in general, the administration and
management of the Organization (article 36 of the Financial Regulations).
 III. COMMUNICATIONS PLAN

Getting Started Understanding Staying informed Resolution and completion

the audit
February 2023 February – September – October 2023
August 2023
Service Communications Our audit plan
approach plan
- Reporting
 Audit Firm Timetable
principles and - Engagement
practices team
 Engagement - Other
letter and deliverables
independence
confirmation

Risk and Risk Condition  Risk Analysis Update on Reporting

control Alert  Perspectives accounting/audit Requirements
on fraud risk issues and risk
analysis - Internal
Financial Control Audit
reporting Observations Opinion
- Accounting
Policies
- Management
judgments
- Independence
Governance Assessing
our
Performance
IV. AUDIT APPROACH AND METHODOLOGIES
In line with the requirements of the Philippine Standards on Auditing (PSA), we continue to
apply a risk-based approach in the audit of the UMTC’s financial statements and operational
management.
The risk-based approach adopted in the audit of the financial statements requires the
conduct of risk assessments of material misstatements at the financial statement and
assertion levels based on an appropriate understanding of the Organization and its
environment, including its internal control.
In applying the audit approach and methodology, we primarily assess the risk maturity of the
Organization by obtaining an overview of the extent to which the Governing Body and UMTC
management determine, assess, manage and monitor risks.
This is followed by a periodic audit planning exercise, identifying, and prioritizing all those
areas on which the stakeholders require objective assurance, including the risk management
processes, the management of key risks, and the recording and reporting of risks, as well as
assurance on the mitigation of individual or groups of risks.
The last phase of our audit methodology is the communication of the value delivered by our
audit, which involves the discussion of the audit findings and conclusion with UMTC
management for action thereon.

V. RISK PERSPECTIVES
We identified factors within the UMTC operations that we considered in our audit trajectories.
We have planned to input this information into our audit work for the current year of our
mandate, which will focus on the following topic:
Financial reporting and critical processes. The financial statements of the UMTC are
prepared in accordance with PFRS and the Financial Regulations. The risk perspectives will
include: accounting and reporting controls; completeness of financial information;
judgements and estimates; cut-off procedures; consolidation; capitalization; disclosures;
compliance with regulations; and PFRS updates. The audit objective is to form and issue an
independent audit opinion on the financial statements of the UMTC through the examination
of evidence supporting the amounts and disclosures in the financial statements, which
includes the assessment of the accounting principles used and significant estimates made,
as well as the overall presentation of the financial statements. It also aims to ascertain the
efficiency and effectiveness of the design and operation of accounting and reporting
controls.

VI. PERSPECTIVES ON FRAUD RISK

Management:
ƒ Ultimately responsible for developing and maintaining anti-fraud program
ƒ CFO/Controller develop controls to deter and detect fraud
ƒ Internal Audit and Compliance: monitoring and auditing
Audit and Compliance Committee:
 ƒ Evaluate management’s identification of fraud risk
ƒ Evaluate implementation of fraud controls
ƒ Reinforce “tone at the top”
ƒ Conduct special investigations
External Auditor:
ƒ Evaluates management’s programs and controls to deter and detect fraud
ƒ Reasonable assurance that financial statement are free of material misstatement due to
fraudulent financial reporting or misappropriation of assets

VII. AUDIT MATERIALITY

Our audit requires us to determine a specific amount of materiality for each engagement.
This amount is also used to evaluate the significance of any uncorrected misstatements
(past adjustments and reclassifications) noted during the audit.
We have set our overall materiality at approximately 2 percent of the average total expenses
of the UMTC for the last five years, or PHP 7 million.
We considered the following factors in establishing materiality: the needs of the
Organization; and the needs of other contributors, representatives of governments,
employers and students. This is consistent with the materiality level used for the 2022
financial statement audit. However, the quantitative measure of materiality is not the only
factor considered in evaluating misstatements. Relatively small misstatements may have
material effect on the financial statements because of qualitative considerations.

VIII. AUDIT MANAGEMENT

The management of our audits is based on our established operating philosophy of aligning
our audit process more closely with the needs of our clients to improve their governance and
provide the users of their financial statements with a reasonable level of assurance that our
client’s processes are effective as to their design and operation.
Effective staffing strategies are adopted in the deployment of the auditors that include
effective skills mixing, bespoke technical training and adequate support mechanisms. In
compliance with the Philippine Standards on Auditing, our audits undergo a three-level
review to ensure audit quality.

IX. REPORTING TIMETABLE

AUDIT REPORTS University Financial October 2023

Statements
INTERNAL CONTROL REPORTING Internal Control Observations October 2023

AUDIT FINDINGS Required Communications October 2023

This Audit Plan was prepared and designed by:
Tanggoyoc, Ma. Cristine L.
Sarsale,Cindy H.
Laguna, Patricia Kim Beatriz
Balabat, Shaira Shayne B.