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DOF tightens internal audit

By Mary Grace Padin (The Philippine Star)

MANILA, Philippines — The Department of Finance (DOF) has formally adopted an internal auditing system that is compliant with global principles and standards to improve the agency’s operations and performance.

Finance Secretary Carlos Dominguez signed Department Order 02-2018, institutionalizing within the agency the use of an improved and independent internal auditing system.

Also known as the DOF’s Internal Audit Service Charter, the new issuance orders for the adoption of a “systematic and disciplined approach of independently evaluating performance, internal controls, operations and programs.”

According to the DOF, the IAS Charter was issued in line with the Commission on Audit’s adoption of the Philippine internal auditing framework for the public sector, which adheres to global professional practices and provides guidance essential for the professional practice of internal auditing.

The DOF is the first government agency to adopt a strengthened and globally accepted internal auditing system that is compliant with the new framework.

The DOF’s Internal Audit Service department, who is headed by Ma. Luisa Notario, is tasked to implement the newly approved IAS Charter.

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Under the new charter, the head of the IAS is mandated to report functionally to the finance secretary and administratively to a designated undersecretary to assure that the office is fulfilling its mandate.

“The DOF-IAS is mandated to provide an independent objective assurance and advisory services designed to add value and improve DOF operations, including its bureaus and attached agencies. (It) shall remain free from all conditions that threaten the ability of the internal auditors to carry out its responsibilities in unbiased manner,” Notario said.

“Should IAS independence and objectivity be impaired, details of impairment shall be disclosed to the DOF secretary,” she said.

Notario said the head of the IAS should also submit annually to the finance secretary a risk-based internal audit plan for review and approval.

The creation of the IAS in all government agencies was mandated through Republic Act 3456 or the Internal Auditing Act of 1962 and was amended through RA 4177. In the DOF, its IAS was created through Department Order 35-2007.

Source: http://www.philstar.com:8080/business/2018/02/01/1783275/dof-tightens-internal-audit