Liangcungco, Carla C.
MA-335
Internal Auditing (Auditing and Assurance Principles)
Special Assignment: COA as the Government’s Auditor
1. What are the elements of an assurance engagement? Which elements on the audit
performed by COA pertain to each item on an assurance engagement?
There are five elements of an assurance engagement and these are (1)
Existence of a Three-Party Relationship, (2) Subject Matter, (3) Suitable Criteria, (4)
Sufficient Appropriate Evidence, and (5) Written Assurance Report. As COA performed
audit on the utilization of the budget of the DOH on COVID-19 funds, they conduct three
(3) elements on their audit process: the Existence of a Three-Party Relationship is
used by COA wherein they have the responsible party which is the Department of
Health (DOH), the users, the recipient of the responsible party which are the public and
the government body, and of course, the practitioner that performed the auditing on the
financial statements of the responsible party, the Commission on Audit (COA). There is
also a Subject Matter wherein this is provided by the responsible party. The subject
matter is the COVID-19 funds which is being examined whether the mentioned funds is
utilized properly. And the Written Assurance Report is conducted wherein they
conclude all their audit findings on the subject matter, the issues that may require the
attention during the audit and also their opinion based on the audit findings.
2. Should an auditor publish the results of an audit report? Why or why not?
As an individual who pays taxes, I should say yes. Even though VAT is the only
tax I pay as of now, I still need to know that public funds are being used properly. As an
Accountancy student, I have thrifty characteristics when it comes to my own money,
what more if I know that my money contribution plays a big role in our country right now
when it comes to our health and safety, right? We all want our country to be COVID-free
for us to have the freedom to do whatever we want. That’s why we need a guarantee
that the medical care that is offered by the government is not being defrauded.
3. Based on the report issued by COA (please use substantiation), was DOH in violation
of the criteria?
Yes, COA found out that non-submission of documents or supporting papers of
the responsible party caused the deficiencies concerning on the COVID-19 funds.
4. Does violation, if any, on the criteria pertain to corruption? Why or why not? Is it
identified in the report?
According to Health Undersecretary Maria Rosario Vergeire (2021), COA
clarified that they are not accusing of corruption because they (DOH) are still submitting
needed evidence to show how they used the funds.
Liangcungco, Carla C.
MA-335
Internal Auditing (Auditing and Assurance Principles)
5. What actions may the government agencies have undertaken prior to release of the
findings to ensure compliance?
Every country has a public funds wherein its source came from taxes,
expenditures, etc. Its used supposed to be help the public through goods and services
offered by the government. It is also used to provide health programs, community
service, public service and restoration programs, and health programs. It is important to
utilize public funds because it allows the government to plan and manage its financial
resources in order to assist the implementation of numerous activities and projects that
best promote the country’s growth.
Liangcungco, Carla C.
MA-335
Internal Auditing (Auditing and Assurance Principles)
5 Elements of Assurance Engagement: All You Should Know. (2021, May 6).
Accounting Hub. https://www.accountinghub-online.com/5-elements-of-assurance-
engagement/
Janika Vergara - Administrator. (2021). Commission on Audit - COA clarification on
audit findings of DOH COVID-19 funds. Coa.gov.ph.
https://www.coa.gov.ph/index.php/2013-06-19-13-07-50/news-releases/362-coa-
clarification-on-audit-findings-of-doh-covid-19-funds
Ann, J. (2021, August 14). DOH transparent, no corruption in P67-B flagged by COA:
exec. @Pnagovph; Philippine News Agency.
https://www.pna.gov.ph/articles/1150455
