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REPUBLIC OF THE PHILIPPINES

COMMISSION ON AUDIT
Commonwealth Avenue, Quezon City

RESOLUTION
No. 2012 - 00-
Date 'AU. 0. 2 723
SUBJECT Amending COA Memorandum No. 2020-014 dated September 30,
2020 on the Revised Guidelines on the Delineation of Authority and
Responsibility in the Evaluation of Complaints, Information of
Fraud, Requests for Fraud Audit and Other Cases, the Conduct of
Fraud Audit and Reporting Thereof and for Other Purposes

WHEREAS, Section 2(2) of Article IX-D of the 1987 Philippine Constitution

provides that the Commission shall have exclusive authority, subject to the limitations in
this Article, to define the scope of its audit and examination, establish the techniques and
methods required therefor, and promulgate accounting and auditing rules and regulations;

WHEREAS, Section 26 of Presidential Decree No. 1445 provides that the

authority and powers of the Commission shall extend to and comprehend all matters
relating to auditing procedures, systems and controls;

WHEREAS, in its regular meeting held on July 17, 2014, the Commission Proper
approved the Guidelines on the Delineation of Authority and Responsibility in the Conduct
of Fraud Audit and Reporting Thereof, which was disseminated to all officials and
employees of this Commission under COA Memorandum No. 2015-001 dated January 30,
2015;

WHEREAS, in COA Resolution No. 2015-016 dated April 14, 2015, the
Commission Proper resolved to amend certain provisions of COA Memorandum No. 2015-
001 dated January 30, 2015 to properly lodge the authority on the Commission Proper as a
body to issue office orders and other issuances on the conduct of fraud d special audit;

WHE REAS, the Guidelines on the Delineation of Authority ajd Responsibility in

the Conduct of Fraud Audit and Reporting Thereof was later re-issued under COA
Memorandum No. 2015-007 dated April 16, 2015 and was amended by COA
Memorandum No. 2020-014 dated September 30, 2020 providing the Revised Guideline
on the Delineation of Authority and Responsibility in the Evaluation of Complaj ts,
Information of Fraud, Requests for Fraud Audit and Other Cases, the Conduct raud
Audit and Reporting Thereof and for Other Purposes;
 WHEREAS, pressing issues and concerns, including those relative to the inclusion
in special audit teams of auditors stationed at the auditee-agencies subject of the
complaints, arose as they are easy targets of harassment, threat and intimidation;

WHEREAS, there is a need to continually review and update the existing policies
on the conduct of fraud audit by this Commission;

WHE REAS, to preserve impartiality, avoid possible conflict of interest and

promote safety and security, the special audit teams to be created for the conduct of fraud
audits shall not include resident auditors of government agencies under fraud audits;

WHEREAS, to ensure compliance with the instructions of the Chairperson of this

Commission pertaining to the fraud audit report, the fraud audit report shall be transmitted,
through a letter signed by the Chairperson, to the audited agency, Office ofthe Ombudsman
and other oversight bodies and agencies.

NOW, THEREFORE, the Commission Proper RESOLVES, as it does hereby

RESOLVE, to further amend the following provisions of COA Memorandum No. 2020-
014 dated September 30, 2020, to read as follows:

5. GUIDELINES IN THE EVALUATION OF CASES

5.5.4.2 Composition of SAT

c. May include auditors/personnel from other offices of the

Commission or other auditing units whose professional
expertise can contribute to the efficient execution of the
audits and the achievement of their objectives. Such
inclusion shall be coordinated with the Director
concerned. However, the resident auditors of the
agency subject of the fraud audit shall not be included
in the SAT.

XXX

6. GUIDELINES IN THE CONDUCT OF FRAUD AUDIT INVESTIGATION

6.6 Responsibilities of the TM, TL and TS in the Conduct of Fraud Au

Investigation-

6.6.2 The TL shall:

I
2
 6.6.2.17 Prepare jointly with the TS Answers to Appeals filed by
person/s held liable in the ND/NC, with the assistance of
the FAO Legal Division or RLS, as the case may be.

XXX

6.6.3 The TS shall:

6.6.3.13 Prepare jointly with the TL Answers to Appeals filed by

person/s held liable in the ND/NC, with the assistance of
the FAO Legal Division or RLS, as the case may be.

X XX

6.7 Common Responsibilities of the FAO Director/RDs relative to the

conduct of audit investigation The FAO Director/RDs shall:

6.7.7 Transmit the FAR to the Chairperson for consideration and

approval, who may return the same for compliance of the
review notes and other instructions pertaining to the audit
report.

6.7.8 Upon approval of the FAR by the Chairperson, prepare the

transmittal letters of the FAR to the Head of the Agency, OMB,
and other concerned oversight bodies and agencies. The
transmittal letters shall be signed by the Chairperson.

This resolution shall cover all pending fraud audit cases and those that may be
submitted/referred to the Commission in the future.

All provisions of resolutions, memoranda and other issuances that are repugnant to
or inconsistent with this Resolution are hereby repealed or superseded accordingly. All
other provisions of COA Memorandum No. 2020-014 which are not inconsistent herewith
shall remain in full force and effect.

This Resolution shall take effect immediately.

DONE #is ""ay of Jr in Quezon City, Philippines.

;'.:.:w:::, COJ.!f'IIIS.SIOH ON AUDIT

~~~;i-:. o,,1c1 o, THE COMMISSION SI CllflARl6T

Chairperson

ROLA
omm1ss1oner