Determination of audit procedures.
SEC. 57. Determination of audit procedures. —In the determination of auditing procedures and techniques to be followed and the extent of examination of vouchers and other documents by government auditors, the Commission shall give due regard to generally accepted principles of auditing and accounting organizations and systems, including consideration of the effectiveness of internal control and related administrative practices of the audited agencies.
Audit of assets.
SEC. 58. Audit of assets. —the examination and audit of assets shall be performed with a view to ascertaining their existence, ownership, valuation and encumbrances as well as the propriety of items composing the respective asset accounts, determining their agreement with records; proving the accuracy of such records; ascertaining if the assets were utilized economically, efficiently and effectively; and evaluating the adequacy of controls over the accounts.
Audit of liabilities.
SEC. 59. Audit of liabilities. —In his audit of liabilities, the auditor shall seek to establish that all obligations of the agency have been accurately recorded; only bonafide obligation of the agency have been includes; the obligations incurred are properly authorized; all provisions of trust indentures or mortgages are complied with; and mortgages and other encumbrances are fully disclosed.
Audit of revenue accounts.
SEC. 60. Audit of revenue accounts. —The examination and audit of revenue accounts shall be performed with a view to ascertaining that all earned revenues have been duly recorded; and all recorded revenues have been earned and appropriate classifications of revenues have been consistently followed.
Audit of expense accounts.
SEC. 61. Audit of expense accounts. —The examination of expense accounts shall be undertaken to ascertain that all expenses incurred have been duly authorized; adequately funded and documented; properly recorded; all recorded expenses have been actually incurred; and the classifications of expenses are appropriate and have been consistently followed.
Audit of surplus or networth.
SEC. 62. Audit of surplus or networth. —The audit of surplus or networth shall seek to determine the nature of the surplus, whether current or invested surplus; the amount of current surplus available to cover appropriations for the operational expenses of the government; the propriety of the ledger accounts and balance sheet presentation account; and the proper authority and recording of changes in the capital structure made during the period under audit.
Source: Supreme Court E-Library, Republic of the Philippines. Philippine laws are public documents (works of the government).
