1. COMPLIANCE AUDIT

It is the evaluation of the degree of compliance with laws, regulations, managerial policies and operating procedures in the LGU, including compliance with accountability measures, ethical standards and contractual obligations. [1.9.1 Compliance Audit, Department of Budget and Management (DBM) Internal Audit Manual for Local Government Units (LGUs) (2016), p. 10]

Service Details

OFFICE OR DIVISION	INTERNAL AUDIT SERVICE
CLASSIFICATION	SIMPLE
TYPE OF TRANSACTION:	G2G - Government to Government
WHO MAY AVAIL:	Executive Branch of the Municipality of Manolo Fortich

CHECKLIST OF REQUIREMENTS:	WHERE TO SECURE
1. Written request containing reasons for requesting audit	1. Requesting Client
2. Documentary evidences, if any	2. Requesting Client
3. Endorsement Letter or Written Instructions from the Mayor to conduct Audit	3. Mayor’s Office (MO)

CLIENT STEPS	AGENCY ACTION	FEES TO BE PAID	PROCESSING TIME	PERSON RESPONSIBLE
1. Submit the written request, documentary evidences (if any) and endorsement letter or written instructions from Mayor’s Office to the IAS/U Office	1. Receive the written request, documentary evidences (if any) and endorsement letter or written instructions from the Mayor’s Office and forward to the Head of IAS	None	5 minutes	Administrative Clerk IV /Engineer I Internal Audit Service/Unit
	2. Evaluate if the audit request is under the scope of IAS	None	3 Hours	Internal Auditor III Internal Audit Service
	3.1 Not under the scope of IAS
	• Prepare the reply letter stating the basis why the audit is declined and submit to the Head of IAS for review and approval.	None	4 hours	Administrative Clerk IV /Engineer I Internal Audit Service/Unit
	• Review and approve the reply letter	None	2 Hours	Internal Auditor III Internal Audit Service
	• Discuss with the Municipal Mayor the reasons for the decline	None	30 Minutes	Internal Auditor III Internal Audit Service
	• Submit the letter to the requesting client and copy furnished to the Municipal Mayor	None	30 Minutes	Administrative Clerk IV /Engineer I Internal Audit Service/Unit
2. Visit the IAS/U Office for the discussion of the audit request	3.2 Under the scope of IAS:
	• Inquire about the current situations and discuss the audit risks, goals and expectation of the requested audit	None	2 Hours	Internal Auditor III Internal Audit Service
	• Establish and formulate the audit scope, objectives, and procedures of the audit areas/concerns requested by the client	None	2 days	Internal Auditor III/ Administrative Clerk IV /Engineer I Internal Audit Service/Unit
	• Assign and discuss of the audit scope, objectives and procedures to the IAS staff	None	30 Minutes	Internal Auditor III Internal Audit Service
3. Submit and provide the IAS/U the documents and records for audit	4. List the documents and records need for the audit and forward the list to the requesting client	None	30 Minutes	Internal Auditor III Internal Audit Service
	5. Conduct the audit	None	15 Days (depending on the nature and complexity of the audit)	Internal Auditor III/ Administrative Clerk IV /Engineer I Internal Audit Service/Unit
	6. Draft audit report and submit to the Head of IAS for review and approval	None	5 Days (depending on the nature and complexity of the audit)	Administrative Clerk IV /Engineer I Internal Audit Service/Unit
	7. Review and approval of audit report	None	5 days (depending on the nature and complexity of the audit)	Internal Auditor III Internal Audit Service
	8. Discuss the audit findings with the Municipal Mayor	None	1 Hour	Internal Auditor III Internal Audit Service
4. Receive the final audit report	9. Submit audit report to the requesting client and copy furnished to the Municipal Mayor	None	30 minutes	Administrative Clerk IV Internal Audit Service/Unit
TOTAL		None	10 Hours, 5 Minutes (If the audit request is not under the scope of the IAS/U) and 27 Days, 7 Hours, 35 Minutes (If the audit request is under the scope of the IAS/U)