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NATIONAL FEDERATION OF JUNIOR PHILIPPINE INSTITUTE OF ACCOUNTANTS

THE ORGANIZATION OF ACCOUNTANCY STUDENTS IN CENTRAL LUZON Federation Year 2013 2014 R3: Reaching Greater Heights Celebrating Three Decades of Unifying and Empowering the JPIAn Spirit

REGION III COUNCIL

IMPLEMENTING RULES AND REGULATIONS IN THE CONDUCT OF AUDIT AND EVALUATION

REVISION HISTORY: Version No. 1 2 Date 11/5/2012 22/5/2013 Revised By Pauline Yehn G. Sebastian John Kendrick H. Pajarin Approved By Matthew U. Gopez Zheena E. Ocampo Noted By Conrad Allan M. Alviz Conrad Allan M. Alviz Details Initial Issue Annual Update

Implementing Rules and Regulations on Audit and Evaluation National Federation of Junior Philippine Institute of Accountants Region III Council

Page 1 of 10

NATIONAL FEDERATION OF JUNIOR PHILIPPINE INSTITUTE OF ACCOUNTANTS

THE ORGANIZATION OF ACCOUNTANCY STUDENTS IN CENTRAL LUZON Federation Year 2013 2014 R3: Reaching Greater Heights Celebrating Three Decades of Unifying and Empowering the JPIAn Spirit

REGION III COUNCIL

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 ..........................................................................................................................................................................................................7 EVALUATION REPORT .....................................................................................................................................................................................................7 ENFORCEMENT OF THE IMPLEMENTING RULES AND REGULATIONS ................................................................................................7 AMENDMENTS OR REVISIONS ....................................................................................................................................................................................8 SEPARABILITY CLAUSE ...................................................................................................................................................................................................8 REPEALING CLAUSE..........................................................................................................................................................................................................8 EFFECTIVITY .........................................................................................................................................................................................................................8

Implementing Rules and Regulations on Audit and Evaluation National Federation of Junior Philippine Institute of Accountants Region III Council

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NATIONAL FEDERATION OF JUNIOR PHILIPPINE INSTITUTE OF ACCOUNTANTS

THE ORGANIZATION OF ACCOUNTANCY STUDENTS IN CENTRAL LUZON Federation Year 2013 2014 R3: Reaching Greater Heights Celebrating Three Decades of Unifying and Empowering the JPIAn Spirit

REGION III COUNCIL

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

AUDIT OF COUNCILS FINANCIAL STATEMENTS Pre-Audit Agreement


A. Responsibility for the Financial Statements
The Regional Vice President for Finance is responsible for preparing and presenting the financial statements in accordance with the financial reporting framework. An audit of financial statement does not relieve the Regional Vice President for Finance of its responsibilities. Hence, it is the Regional Vice President for Finances responsibility to adopt and implement adequate accounting and internal control systems that will help ensure the preparation of reliable financial statements.

B. Assurance Provided
The Regional Vice President for Audits opinion on the Financial Statements is not a guarantee that the Financial Statements are dependable. It is only to provide reasonable assurance that the financial statements taken as a whole are free from material misstatements. In every audit there are always inherent limitations that affect the auditors ability to detect material misstatements.

C. Period Audit
The Audit of Financial Statements shall be conducted every month and after every major event of the council. The audit shall occur for 10 days. The Audit Report shall be issued on the 5th day succeeding the audit period. Sent to immediate users e -mail addresses.

Implementing Rules and Regulations on Audit and Evaluation National Federation of Junior Philippine Institute of Accountants Region III Council

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NATIONAL FEDERATION OF JUNIOR PHILIPPINE INSTITUTE OF ACCOUNTANTS

THE ORGANIZATION OF ACCOUNTANCY STUDENTS IN CENTRAL LUZON Federation Year 2013 2014 R3: Reaching Greater Heights Celebrating Three Decades of Unifying and Empowering the JPIAn Spirit

REGION III COUNCIL

AUDIT OF LOCAL CHAPTERS FINANCIAL STATEMENTS Pre-Audit Agreement


A. Responsibility for the Financial Statements
The Local Chapters Vice President for Finance is responsible for preparing and presenting the financial statements in accordance with the financial reporting framework. An audit of financial statement does not relieve the Local Chapters Vice President for Finance of its responsibilities. Hence, it is the Local Chapters Vice President for Finances responsibility to adopt and implement adequate accounting and internal control systems that will help ensure the preparation of reliable financial statements.

B. Assurance Provided
The Local Chapters Vice President for Audits opinion on the Financial Statements is not a guarantee that the Financial Statements are dependable. It is only to provide reasonable assurance that the financial statements taken as a whole are free from material misstatements. In every audit there are always inherent limitations that affect the auditors ability to detect material misstatements.

C. Period Audit
The 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 the last day of the sixth month.

REGIONAL/LOCAL CHAPTERS VICE PRESIDENT FOR A UDITS RESPONSIBILITY


A. The Regional/Local Chapters Vice President for Audit should design procedures to help identify instances of noncompliance which shall be reflected on the audit plan and programs. Such document could be revised or amended from time to time if, in the Regional/Local Chapters Vice President for Audits perception, is no longer applicable or shall be amended to suffice its effectiveness. The Regional/Local Chapters Vice President for Audit shall declare 100% independence in the periods of audit to avoid conflicts of interest. The Regional/Local Chapters Vice President for Audit is responsible to conduct 100% examination of all evidences and always use extensive testing in procedures. The Regional/Local Chapters Vice President for Audit shall be responsible in looking for all possible evidences to obtain the least possibility of fraud and/or errors. When the Regional/Local Chapters Vice President for Audit becomes aware of possible instance of noncompliance. He is responsible to understand the nature of the act and the circumstances in which it has occurred, to evaluate the possible effect on the financial statements.

B. C. D.

Implementing Rules and Regulations on Audit and Evaluation National Federation of Junior Philippine Institute of Accountants Region III Council

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NATIONAL FEDERATION OF JUNIOR PHILIPPINE INSTITUTE OF ACCOUNTANTS

THE ORGANIZATION OF ACCOUNTANCY STUDENTS IN CENTRAL LUZON Federation Year 2013 2014 R3: Reaching Greater Heights Celebrating Three Decades of Unifying and Empowering the JPIAn Spirit

REGION III COUNCIL

E. F. G. H. I. J.

When the Regional/Local Chapters Vice President for Audit believes there may be noncompliance, fraud and/or error, he should document the findings, discuss them with the council and consider the implication. The auditor should obtain written representation that the Regional/Local Chapters Vice President for Finance has disclosed all information necessary are all known actual or possible noncompliance with laws and regulations. It is the Regional/Local Chapters Vice President for Audits responsibility to request the revision of the financial statements when he believes it is materially misstated. If there is a scope limitation and the Regional/Local Chapters Vice President for Finance does not want to revise the financial statements even if the Regional/Local Chapters Vice President for Audit believes it is materially misstated, it should call for a special meeting of the Regional Executive Officers duly called for the purpose. It is the Regional/Local Chapters Vice President for Audits responsibility to issue a report on the stated date on the IRR and communicate it to the immediate users. The working papers of the Regional/Local Chapters Vice President for Audit shall remain inaccessible from all third parties if it is not in great need to be disclosed.

AUDIT PROCESS
A. Statement of Assertions
Assertions 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 period Classification 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 its liabilities Completeness all assets, liabilities and equity balances that should have been recorded have been recorded Valuation and Allocation assets, liabilities and equity balances are included in the financial statements at 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 been included Classification and Understandability financial statements are appropriately presented and described, and information in disclosures is clearly expressed. Accuracy and Valuation financial and other information is disclosed fairly and at appropriate amounts.
Implementing Rules and Regulations on Audit and Evaluation National Federation of Junior Philippine Institute of Accountants Region III Council Page 5 of 10

NATIONAL FEDERATION OF JUNIOR PHILIPPINE INSTITUTE OF ACCOUNTANTS

THE ORGANIZATION OF ACCOUNTANCY STUDENTS IN CENTRAL LUZON Federation Year 2013 2014 R3: Reaching Greater Heights Celebrating Three Decades of Unifying and Empowering the JPIAn Spirit

REGION III COUNCIL

B. Planning
Audit Planning includes the understanding of all the transactions which the Council has entered into. Sources of Information o Records of the Vice President for Finance o Minutes of the Meeting o Documentation of Transactions o Discussion with the Officers Internal Control o Determination of all the councils internal control o Assessment and Evaluation of its effectiveness Materiality o Specific amount of materiality is yet to be decided

C. Substantive Tests
The tests are designed to substantiate the account balances and/or detect material misstatements. The type of 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 the 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 the evidences presented and shall have the right to question any evidence that is missing.

D. Auditors Report
The 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 good faith. Whenever the Regional Vice President for Audit issues a report, it shall be communicated first to the Regional 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.

Implementing Rules and Regulations on Audit and Evaluation National Federation of Junior Philippine Institute of Accountants Region III Council

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NATIONAL FEDERATION OF JUNIOR PHILIPPINE INSTITUTE OF ACCOUNTANTS

THE ORGANIZATION OF ACCOUNTANCY STUDENTS IN CENTRAL LUZON Federation Year 2013 2014 R3: Reaching Greater Heights Celebrating Three Decades of Unifying and Empowering the JPIAn Spirit

REGION III COUNCIL

To obtain feedback from the members on the activities conducted by the Regional Council to assess its turnout and so as to facilitate a room for suggestions and recommendations. To help the council make an assessment on current performance.

EVALUATION FORM
A. B. The content of the evaluation form will depend on the activitys objectives and other factors that may be deemed necessary for the evaluation. The content of the evaluation is subject to the approval of the Regional President. 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 the Local Chapter President of the present Local Chapter is not present then any representative of the Local Chapter may answer the evaluation form. The Evaluation Form should be answered and collected before departing from the venue of the event. The Regional Vice President for Audit is responsible for the safe-keeping of the evaluation forms before and after preparing the evaluation report. Evaluation Forms shall serve as supporting documents of the evaluation reports and shall be kept until the end of the federation year. Only those who attended the event to be evaluated shall be provided an Evaluation Form.

C. D. E. F.

EVALUATION REPORT
A. B. C. D. The evaluation report shall be issued by the Regional Vice President for Audit within 7 days after the event to be evaluated. The evaluation report should be reviewed and approved by the Regional President before officially issued. A programmed document in MS Excel form shall be maintained for evaluation purposes. This document is password protected and only the Regional Vice President for Audit is authorized to make use of such document. The evaluation shall contain quantitative and qualitative information which will be used as basis for the evaluation.

ENFORCEMENT OF THE IMPLEMENTING RULES AND REGULATIONS


A. B. It shall be the primary duty of the Regional Vice President for Audit and the Council to effectively enforce the provisions of this Implementing Rules and Regulations. The Council also has the sole right to interpret the contents of this Implementing Rules & Regulations and their decision will be binding and irrevocable. The Regional Adviser or his duly designated representative shall act as legal adviser to the Regional Vice President for Audit and the Council and shall render legal assistance as may be necessary in carrying out the provisions of this Implementing Rules and Regulations.

Implementing Rules and Regulations on Audit and Evaluation National Federation of Junior Philippine Institute of Accountants Region III Council

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NATIONAL FEDERATION OF JUNIOR PHILIPPINE INSTITUTE OF ACCOUNTANTS

THE ORGANIZATION OF ACCOUNTANCY STUDENTS IN CENTRAL LUZON Federation Year 2013 2014 R3: Reaching Greater Heights Celebrating Three Decades of Unifying and Empowering the JPIAn Spirit

REGION III COUNCIL

AMENDMENTS OR REVISIONS
A. B. C. D. The Council shall be vested with the exclusive power to revise and amend the Implementing Rules and Regulations. Any amendments to or revisions to this Implementing Rules and Regulations may be proposed by any member of any local chapter upon a written request of such member, stating the reasons thereto. Any request for amendments and revisions as well as proposed amendments must initially be reviewed by the Regional Vice President for Finance then to be forwarded to the Regional Executive Officers for discussion, editing and final approval and to be noted by the Regional Adviser. The Regional Executive Officers shall have the right to debunk any proposed revisions and amendments, submitted to them by the Regional Vice President for Finance, which are deemed unnecessary. The final decision on any inclusions and exclusions to this Implementing Rules and Regulations must be determined by a majority vote of all Regional Executive Officers in which the Regional Vice President for Finance is included. Amendments to particular provisions in this Implementing Rules and Regulations shall be allowed provided that such amendments will be communicated to stakeholders at least two weeks before it could take effect.

E.

SEPARABILITY CLAUSE
If any clause, provision, paragraph or part of this Implementing Rules and Regulations shall be declared unconstitutional or invalid, such judgment shall not affect, invalidate, or impair any other part hereof, but shall be merely confined to the clause, provision, paragraph or part directly involved in the controversy in which such judgment has been rendered.

REPEALING CLAUSE
Any rule and regulation or resolution or part/s thereof inconsistent with the provisions of this Implementing Rules and Regulations are hereby repealed or modified accordingly.

EFFECTIVITY
This Implementing Rules and Regulations shall take effect immediately after its presentation and approval from the Assembly. Prepared by: ___________________________________ John Kendrick H. Pajarin VICE PRESIDENT FOR AUDIT Colegio de San Juan de Letran - Bataan

Implementing Rules and Regulations on Audit and Evaluation National Federation of Junior Philippine Institute of Accountants Region III Council

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NATIONAL FEDERATION OF JUNIOR PHILIPPINE INSTITUTE OF ACCOUNTANTS

THE ORGANIZATION OF ACCOUNTANCY STUDENTS IN CENTRAL LUZON Federation Year 2013 2014 R3: Reaching Greater Heights Celebrating Three Decades of Unifying and Empowering the JPIAn Spirit

REGION III COUNCIL

Approved by: ___________________________________ Zheena E. Ocampo PRESIDENT Systems Plus College Foundation ___________________________________ Francis Xavier W. Ferrer VICE PRESIDENT FOR ACADEMICS Systems Plus College Foundation

___________________________________ Emil Julius T. David VICE PRESIDENT FOR NON ACADEMICS Holy Angel University

___________________________________ Leila Victoria R. Antonio VICE PRESIDENT FOR FINANCE Wesleyan University Philippines

___________________________________ Enrico C. Rivera VICE PRESIDENT FOR MEMBERSHIP Tarlac State University

___________________________________ Adrianne B. Harve VICE PRESIDENT FOR COMMUNICATIONS University of the Assumption

___________________________________ Jane T. Villanueva VICE PRESIDENT FOR MEDIA Wesleyan University - Philippines Noted by: ___________________________________ Conrad Allan M. Alviz, CPA, CISA ADVISER

___________________________________ Roy James S. Enrile SECRETARY GENERAL Baliuag University

Implementing Rules and Regulations on Audit and Evaluation National Federation of Junior Philippine Institute of Accountants Region III Council

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NATIONAL FEDERATION OF JUNIOR PHILIPPINE INSTITUTE OF ACCOUNTANTS

THE ORGANIZATION OF ACCOUNTANCY STUDENTS IN CENTRAL LUZON Federation Year 2013 2014 R3: Reaching Greater Heights Celebrating Three Decades of Unifying and Empowering the JPIAn Spirit

REGION III COUNCIL

SGV & Co.

Implementing Rules and Regulations on Audit and Evaluation National Federation of Junior Philippine Institute of Accountants Region III Council

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