Nfjpiar3_1314_IRR No. 4_Audit and Evaluation

8/14/2019 Nfjpiar3_1314_IRR No. 4_Audit and Evaluation

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Implementing Rules and Regulations on Audit and Evaluation Page 1 of 1

National Federation of Junior Philippine Institute of Accountants Region III Council

NATIONAL FEDERATION OF JUNIOR PHILIPPINE INSTITUTE OF ACCOUNTANTS

REGION III COUNCILFederation Year 2013 2014

THE ORGANIZATION OF ACCOUNTANCY STUDENTS IN CENTRAL LUZON

R3: Reaching Greater Heights Celebrating Three Decades of

Unifying and Empowering the JPIAn Spirit

IMPLEMENTING RULES

AND REGULATIONS IN THE CONDUCT OF

AUDIT AND EVALUATION

REVISION HISTORY:

Version No. Date Revised By Approved By Noted By Details

1 11/5/2012 Pauline Yehn G. Sebastian Matthew U. Gopez Conrad Allan M. Alviz Initial Issue

2 22/5/2013 John Kendrick H. Pajarin Zheena E. Ocampo Conrad Allan M. Alviz Annual Updat


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TABLE OF CONTENTS

AUDIT OF FINANCIAL STATEMENTS ....................................................................................................................................................................... 3

OBJECTIVES ........................................................................................................................................................................................................................... 3

AUDIT OF COUNCILS FINANCIAL STATEMENTS .............................................................................................................................................. 3

PRE-AUDIT AGREEMENT ............................................................................................................................................................................................... 3

AUDIT OF LOCAL CHAPTERS FINANCIAL STATEMENTS............................................................................................................................. 4

PRE-AUDIT AGREEMENT ............................................................................................................................................................................................... 4

REGIONAL/LOCAL CHAPTERS VICE PRESIDENT FOR AUDITS RESPONSIBILITY ........................................................................ 4

AUDIT PROCESS................................................................................................................................................................................................................... 5

EVALUATION PROCEDURES ......................................................................................................................................................................................... 6

OBJECTIVES ........................................................................................................................................................................................................................... 6

EVALUATION FORM .......................................................................................................................................................................................................... 7EVALUATION REPORT ..................................................................................................................................................................................................... 7

ENFORCEMENT OF THE IMPLEMENTING RULES AND REGULATIONS ................................................................................................ 7

AMENDMENTS OR REVISIONS .................................................................................................................................................................................... 8

SEPARABILITY CLAUSE ................................................................................................................................................................................................... 8

REPEALING CLAUSE .......................................................................................................................................................................................................... 8

EFFECTIVITY ......................................................................................................................................................................................................................... 8


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AUDIT OF FINANCIAL STATEMENTS

OBJECTIVES

To eliminate conflict of interest between the council and the users of financial statements

To lend credibility to the financial statements prepared by the council and local chapters

To enhance the value and usefulness of the financial statements by providing assurance to users that th

statements are reliable

To provide for the remoteness of users from directly assessing the reliability of the information

To avoid misleading financial information that could have substantial consequences for decision makers

To provide reasonable assurance that the council has reported their financial statements with accordance to th

required framework and thus, free from frauds and/or errorsTo provide audit reports as often as financial statements are prepared

AUDIT OF COUNCILS FINANCIAL STATEMENTS

Pre-Audit Agreement

A. Responsibility for the Financial StatementsThe Regional Vice President for Finance is responsible for preparing and presenting the financial statements

accordance with the financial reporting framework.

An audit of financial statement does not relieve the Regional Vice President for Finance of its responsibilitie

Hence, it is the Regional Vice President for Finances responsibility to adopt and implement adequate accountin

and internal control systems that will help ensure the preparation of reliable financial statements.

B. Assurance ProvidedThe Regional Vice President for Audits opinion on the Financial Statements is not a guarantee that the Financi

Statements are dependable. It is only to provide reasonable assurance that the financial statements taken as

whole are free from material misstatements. In every audit there are always inherent limitations that affect th

auditors ability to detect material misstatements.

C. Period AuditThe Audit of Financial Statements shall be conducted every month and after every major event of the council. Thaudit shall occur for 10 days.

The Audit Report shall be issued on the 5th day succeeding the audit period. Sent to immediate users e -ma

addresses.


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AUDIT OF LOCAL CHAPTERS FINANCIAL STATEMENTS

Pre-Audit Agreement

A. Responsibility for the Financial StatementsThe Local Chapters Vice President for Finance is responsible for preparing and presenting the financi

statements in accordance with the financial reporting framework.

An audit of financial statement does not relieve the Local Chapters Vice President for Finance of i

responsibilities. Hence, it is the Local Chapters Vice President for Finances responsibility to adopt an

implement adequate accounting and internal control systems that will help ensure the preparation of reliabfinancial statements.

B. Assurance ProvidedThe Local Chapters Vice President for Audits opinion on the Financial Statements is not a guarantee that th

Financial Statements are dependable. It is only to provide reasonable assurance that the financial statemen

taken as a whole are free from material misstatements. In every audit there are always inherent limitations th

affect the auditors ability to detect material misstatements.

C. Period AuditThe Audit of Financial Statements shall be conducted every six months (semiannually).

The Local Chapters shall send their softcopy of Audited Financial Statements within 2 weeks (14 days) after th

last day of the sixth month.

REGIONAL/LOCAL CHAPTERSVICE PRESIDENT FOR AUDITS RESPONSIBILITY

A. The Regional/Local Chapters Vice President for Audit should design procedures to help identify instances noncompliance which shall be reflected on the audit plan and programs. Such document could be revised amended from time to time if, in the Regional/Local Chapters Vice President for Audits perception, is no long

applicable or shall be amended to suffice its effectiveness.

B. The Regional/Local ChaptersVice President for Audit shall declare 100% independence in the periods of audit avoid conflicts of interest.

C. The Regional/Local Chapters Vice President for Audit is responsible to conduct 100% examination of aevidences and always use extensive testing in procedures. The Regional/Local ChaptersVice President for Aud

shall be responsible in looking for all possible evidences to obtain the least possibility of fraud and/or errors.

D. When the Regional/Local Chapters Vice President for Audit becomes aware of possible instance noncompliance. He is responsible to understand the nature of the act and the circumstances in which it ha

occurred, to evaluate the possible effect on the financial statements.


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E.

When the Regional/Local ChaptersVice President for Audit believes there may be noncompliance, fraud and/oerror, he should document the findings, discuss them with the council and consider the implication.

F. The auditor should obtain written representation that the Regional/Local ChaptersVice President for Finanhas disclosed all information necessary are all known actual or possible noncompliance with laws an

regulations.

G. It is the Regional/Local ChaptersVice President for Audits responsibility to request the revision of the financistatements when he believes it is materially misstated.

H. If there is a scope limitation and the Regional/Local ChaptersVice President for Finance does not want to revithe financial statements even if the Regional/Local Chapters Vice President for Audit believes it is material

misstated, it should call for a special meeting of the Regional Executive Officers duly called for the purpose.

I. It is the Regional/Local ChaptersVice President for Audits responsibility to issue a report on the stated date othe IRR and communicate it to the immediate users.

J. The working papers of the Regional/Local ChaptersVice President for Audit shall remain inaccessible from athird parties if it is not in great need to be disclosed.AUDIT PROCESS

A. Statement of AssertionsAssertions about classes of transactions and events (Income statement):

Occurrence the transactions actually took place

Completeness all transactions that should have been recorded have been recorded

Accuracy the transactions were recorded at the appropriate amounts

Cutoff the transactions have been recorded in the correct accounting periodClassification the transactions have been recorded in the proper accounts

Assertions on Accounts balances (Balance sheet):

Existence assets, liabilities and equity balances exist

Rights and Obligations the entity holds or controls the rights to its assets and owes obligations to i

liabilities

Completeness all assets, liabilities and equity balances that should have been recorded have bee

recorded

Valuation and Allocation assets, liabilities and equity balances are included in the financial statements

appropriate amounts and any resulting valuation or allocation adjustments are appropriately recorded.

Assertions about Presentation and disclosure:

Occurrence the transactions have occurred

Rights and Obligations the transactions pertained to the entity

Completeness all disclosures that should have been included in the financial statements have bee

included

Classification and Understandability financial statements are appropriately presented and described, an

information in disclosures is clearly expressed.

Accuracy and Valuation financial and other information is disclosed fairly and at appropriate amounts.


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B. PlanningAudit Planning includes the understanding of all the transactions which the Council has entered into.

Sources of Information

o Records of the Vice President for Financeo Minutes of the Meetingo Documentation of Transactionso Discussion with the OfficersInternal Control

o Determination of all the councils internal control o Assessment and Evaluation of its effectivenessMateriality

o Specific amount of materiality is yet to be decidedC. Substantive Tests

The tests are designed to substantiate the account balances and/or detect material misstatements. The type

substantive test the Vice President for Audit wishes to perform is Analytical Procedures

The Regional Vice President for Audit will have a comparison of actual financial information with th

expected financial information to determine the reasonableness of an account balance reported.

The Regional Vice President for Audit, in performing the tests, should always examine 100% of all th

evidences presented and shall have the right to question any evidence that is missing.

D. Auditors ReportThe Regional Vice President for Audit shall only have two types of reports namely Qualified and Unqualified:

He may issue a qualified report if he believes that the financial statements are materially misstated.

He may issue an unqualified report if he believes that the financial statements are all true and done in goo

faith.

Whenever the Regional Vice President for Audit issues a report, it shall be communicated first to the Region

Councils President and Adviser before all the Regional Executive Officer may have the right of information.

EVALUATION PROCEDURES

OBJECTIVES

To provide an efficient procedure on evaluating events held by the Council.

To provide timely evaluation of events and projects of the Council.

To help the Council detect flaws in the past activities and prevent such flaws in future events.


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To obtain feedback from the members on the activities conducted by the Regional Council to assess its turnouand so as to facilitate a room for suggestions and recommendations.

To help the council make an assessment on current performance.

EVALUATION FORM

A. The content of the evaluation form will depend on the activitys objectives and other factors that may be deemenecessary for the evaluation. The content of the evaluation is subject to the approval of the Regional President.

B. An evaluation form shall be given to a defined number of participants.In case of small size of participants, each participant shall be given an evaluation form to be answered.

In case of large size of participants, only Local Chapter Presidents shall answer the evaluation forms. If th

Local Chapter President of the present Local Chapter is not present then any representative of the Loc

Chapter may answer the evaluation form.C. The Evaluation Form should be answered and collected before departing from the venue of the event.D. The Regional Vice President for Audit is responsible for the safe-keeping of the evaluation forms before and afte

preparing the evaluation report.

E. Evaluation Forms shall serve as supporting documents of the evaluation reports and shall be kept until the end the federation year.

F. Only those who attended the event to be evaluated shall be provided an Evaluation Form.EVALUATION REPORT

A.

The evaluation report shall be issued by the Regional Vice President for Audit within 7 days after the event to bevaluated.

B. The evaluation report should be reviewed and approved by the Regional President before officially issued.C. A programmed document in MS Excel form shall be maintained for evaluation purposes. This document

password protected and only the Regional Vice President for Audit is authorized to make use of such document.

D. The evaluation shall contain quantitative and qualitative information which will be used as basis for thevaluation.

ENFORCEMENT OF THE IMPLEMENTING RULES AND REGULATIONS

A. It shall be the primary duty of the Regional Vice President for Audit and the Council to effectively enforce thprovisions of this Implementing Rules and Regulations. The Council also has the sole right to interpret th

contents of this Implementing Rules & Regulations and their decision will be binding and irrevocable.B. The Regional Adviser or his duly designated representative shall act as legal adviser to the Regional Vic

President for Audit and the Council and shall render legal assistance as may be necessary in carrying out th

provisions of this Implementing Rules and Regulations.


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AMENDMENTS OR REVISIONS

A. The Council shall be vested with the exclusive power to revise and amend the Implementing Rules anRegulations.

B. Any amendments to or revisions to this Implementing Rules and Regulations may be proposed by any member any local chapter upon a written request of such member, stating the reasons thereto.

C. Any request for amendments and revisions as well as proposed amendments must initially be reviewed by thRegional Vice President for Finance then to be forwarded to the Regional Executive Officers for discussion, editin

and final approval and to be noted by the Regional Adviser.

D. The Regional Executive Officers shall have the right to debunk any proposed revisions and amendmentsubmitted to them by the Regional Vice President for Finance, which are deemed unnecessary. The final decisio

on any inclusions and exclusions to this Implementing Rules and Regulations must be determined by a majorit

vote of all Regional Executive Officers in which the Regional Vice President for Finance is included.E. Amendments to particular provisions in this Implementing Rules and Regulations shall be allowed provided th

such amendments will be communicated to stakeholders at least two weeks before it could take effect.

SEPARABILITY CLAUSE

If any clause, provision, paragraph or part of this Implementing Rules and Regulations shall be declare

unconstitutional or invalid, such judgment shall not affect, invalidate, or impair any other part hereof, but shall b

merely confined to the clause, provision, paragraph or part directly involved in the controversy in which suc

judgment has been rendered.

REPEALING CLAUSE

Any rule and regulation or resolution or part/s thereof inconsistent with the provisions of this Implementing Rul

and Regulations are hereby repealed or modified accordingly.

EFFECTIVITY

This Implementing Rules and Regulations shall take effect immediately after its presentation and approv

from the Assembly.

Prepared by:

___________________________________

John Kendrick H. Pajarin

VICE PRESIDENT FOR AUDIT

Colegio de San Juan de Letran - Bataan


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Approved by:

___________________________________ ___________________________________

Zheena E. Ocampo Francis Xavier W. Ferrer

PRESIDENT VICE PRESIDENT FOR ACADEMICS

Systems Plus College Foundation Systems Plus College Foundation

___________________________________ ___________________________________

Emil Julius T. David Leila Victoria R. Antonio

VICE PRESIDENT FOR NON ACADEMICS VICE PRESIDENT FOR FINANCE

Holy Angel University Wesleyan University Philippines

___________________________________ ___________________________________

Enrico C. Rivera Adrianne B. HarveVICE PRESIDENT FOR MEMBERSHIP VICE PRESIDENT FOR COMMUNICATIONS

Tarlac State University University of the Assumption

___________________________________ ___________________________________

Jane T. Villanueva Roy James S. Enrile

VICE PRESIDENT FOR MEDIA SECRETARY GENERAL

Wesleyan University - Philippines Baliuag University

Noted by:

___________________________________

Conrad Allan M. Alviz, CPA, CISA

ADVISER


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Nfjpiar3_1314_IRR No. 4_Audit and Evaluation