PROVINCE OF DAVAO DE ORO

PROVINCIAL INTERNAL AUDIT OFFICE

ANNUAL AUDIT PLAN

For the Year 202X

(Cover Page)

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1. GENERAL INFORMATION

1.1. INTRODUCTION

Internal Audit is the evaluation of management controls, operations performance, and the determination of the degree of
compliance with laws, regulations, managerial policies, accountability measures, ethical standards and contractual obligations.
It involves the appraisal of the plan of organization and all the coordinated methods and measures, in order to recommend
courses of action on matters relating to operations and management control.

1.2. PURPOSE OF THIS PLAN

This plan was based on the approved Strategic Plan of Internal Audit Division. The purpose of this plan is to align the audit
team with the overall organizational plan of the province and set realistic priorities that once completed will surely promote
development and positive impacts to the service delivery of the province. Further will provide great focus and systematic
approach to the Audit team in performing its functions effectively and efficiently in a one-year period.

1.3. TYPES OF AUDIT

Management Audit

It is a separate evaluation of the effectiveness of internal controls adapted in the operating and support services units/systems
to determine whether they achieve the control objectives over a period of time or as of a specific date. This includes the
determination of the degree of compliance with laws, regulations, managerial policies, accountability measures, ethical
standards, and contractual obligations covering specific timeframes. It is a review and appraisal of the systems and processes,
organizational and staffing structures, operations and management practices, records, reports, and performance standards of
the agencies/units covered.

Operations Audit

It is a separate evaluation of the outcomes, outputs, processes, and inputs to determine whether government operations,
programs, and projects are effective, efficient, ethical and economical, including compliance with laws, regulations,
managerial policies, accountability measures, and contractual obligations. Operations audit of organizations, programs, and
projects involves an evaluation of whether or not performance targets and expected results were achieved. The importance of
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 assessing the effectiveness, efficiency, ethicality and economy of government operations is essential to the delivery of better
public services, accountability, and better governance. The matter of outcomes, outputs, processes, and inputs, as well as their
correlation with the goals of effectiveness, efficiency, ethicality, and economy of operations are the focus of the evaluation.

Compliance Audit

The approach in management audit is to first conduct a compliance audit. Only when there is compliance is it possible to
determine control effectiveness. If there is no compliance, the probable cause for such non-compliance is determined.

The first approach to an operations audit is also to conduct a compliance audit to determine whether government operations
are in accordance with the organization’s mandate and explicit objectives

2. AUDIT OBJECTIVES

Generally, this audit to be performed aims to:

 Analyze and evaluate existing internal controls of safeguarding assets and ensure effective, efficient, ethical, and economical
government operations in consonance with their mandate, policies, government regulations, established objectives, systems
and procedures/processes and contractual obligations.
 Review and appraise systems and procedures, organizational structures, asset management practices, financial and
management records, reports and performance standards of each office.
 Analyze and evaluate management deficiencies in order to assist management in finding realistic courses of action.

3. AUIDIT METHODOLOGIES/STRATEGIES

1. Data Gathering (Background Investigation)

2. Interview of Key Personnel
3. Flowcharting of Existing Processes
4. Walkthrough of Existing Processes and Procedures
5. Narrative Notes of Important and Material Audit Findings
6. Active Market Comparison Strategy
7. Discussions and Conferences

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4. AUDIT SCOPE

Audit Engagement
Audit Audit Audit Timeline
Audit Area Audit Type Expected Benefit Office Duration
Description Allocation Start End
Evaluation of the
degree of
compliance with • Compliance with
laws, applicable LRRs
Compliance __Working
Scope 1 regulations, • Strengthen PIAO P XX,XXX Date Date
Audit Days
managerial Internal Control
policies, and Procedures
operating
procedure

Audit Follow-Up
Audit Audit Timeline
Audit Area Audit Type Audit Description Expected Benefit Office Duration
Allocation Start End

Evaluation of the • Compliance with

degree of applicable LRRs
__Working
Scope 1 Follow-Up compliance to the • Strengthen PIAO P XX,XXX Date Date
Days
audit Internal Control
recommendations Procedures

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Prepared by:

HEAD OF OFFICE
PG Department Head
Provincial Internal Audit Office

Noted:

HEAD OF ADMIN
Provincial Administrator

Approved:

LOCAL CHIEF EXECUTIVE

Governor

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