FATHER SATURNINO URIOS

UNIVERSITY - ENGINEERING
AND TECHNOLOGY PROGRAM:
A COMPLIANCE AUDIT
Proponents:
Arizala, Mark Christian
Betonio, Kent Jerome
Dela Paz, Lhean Darvic
Ruaza, Reggie Mae
Tabaranza, Rhodney Ian
 INTERNAL AUDIT
ACTIVITY CHARTER
Internal auditing is an important management tool
and is one of the ways engineering and technology
Program maintains the integrity, efficiency and
effectiveness of their program and adding value to
improve the functions of the program of Father
Saturnino Urios University. Internal Audit operates
as an independent yet integral part of
management, conducting its duties professionally
and with objectivity. It helps the said program in
accomplishing its objectives by bringing a
methodical and disciplined method to assess and
develop the effectiveness of the programs
adherence to compliance requirements.
 ROLE
The 4th Year Accountancy Students was required to
conduct a course requirement imposed by the
Accountancy Program subject with the description
internal audit. The internal audit activitys
responsibilities are designed by the Engineering
and technology Programs Audit Committee.
 PROFESSIONALISM
Internal audit adheres to the Standards of leading
of professional practices, core principles for the
professional practice of internal auditing, and
codes of ethics, such as those published by the
Institute of Internal Auditors. This constitutes
principles of fundamental requirements for the
professional practice of internal auditing and for
evaluating the internal audit activitys
performance.
 AUTHORITY
The internal audit activity with high regards for
confidentiality and safeguarding records and
information and has unrestricted access to any and
related data, records, information systems of
Engineering and technology Program records,
properties, and personnel relevant to carrying out
any engagement in order to discharge its
compliance responsibilities. All of the faculty
members of the Engineering and technology
program are requested to help out the internal
audit activity in fulfilling its function.
 ORGANIZATION
The Chief Audit Executive shall report functionally to the
Dean of Engineering and technology program.
The Dean of the Engineering and technology program will:
Approve the internal audit charter.
Approve the compliance-based internal audit plan.
Receive communications from the Chief Audit
Executive on the internal audit activitys performance
relative to its plan and other matters.
Make appropriate inquiries of management and the
Chief Audit Executive to determine whether there is
inappropriate scope or resource limitations.
The Chief Audit Executive and the Dean of the said program
should exercise due professional care and interact directly
to each other.
 INDEPENDENCE AND OBJECTIVITY
The internal audit activity will remain free from
interference by any element in the organization,
including mattes of audit selection, scope,
procedures, frequency, timing, or report content
to permit maintenance of a necessary
independent and objective mental attitude. The
independence of this internal audit activity from
day-to-day line management responsibility is
fundamental to its ability to deliver objective
coverage. It must have an impartial, unbiased
attitude and avoid any conflict of interest.
To maintain objectivity, the internal auditors are not
involved in day-to-day control procedures. Instead, ETP
Dean and the ETP faculty are responsible for their own
internal control and efficiency. Internal auditors must
exhibit the highest level of professional objectivity in
gathering, evaluating, and communicating information
about the activity.
In such a way, the auditors would be able to clearly
determine better recommendations that can truly help the
program in their compliance requirements.
The Chief Audit Executive will affirm to the dean of
Engineering and technology Program the organizational
independence of the internal audit activity.
 RESPONSIBILITY
The Chief Audit Executive and the Internal Audit group have
the responsibility to:
Conduct fieldwork in a professional and timely manner.
Evaluating the systems established to ensure compliance
with those policies, plans, procedures, laws, and regulations
mandated by CHED Memorandum Order (CMO) No. 25
Series of 2005 and its supplementary CMOs CMO 29
Series of 2007 Civil Engineering; CMO 15 Series of 2008
Industrial Engineering.
Performing consulting and advisory services related to
compliance management as appropriate for the program.
Reporting on the internal audit activitys purpose,
authority, responsibility, and performance relative
to its plan.
INTERNAL AUDIT
PLAN
 PURPOSE AND SCOPE
The purpose of compliance auditing is to
determine if Engineering and Technology
Programs policies, procedures, and practices used
to estimate, accumulate and report results comply
with the requirement of CHED Memorandum
Orderno. 25 series of 2005, a revised manual for
policies, standards and guidelines adopted and
promulgated by the commission for the purpose of
rationalizing engineering education in the country
and making it responsive to the demands for
professionals in the business and industrial world.
The audit should have a scope limited to the last
complete documents for compliance of both Civil
Engineering and Industrial Engineering Programs.
The program is intended to provide for the proper
planning, performance and reporting on the ETPs
compliance with CMOs no. 25 s. 2005; no. 29 s.
2007; and no. 15 s. 2007. The audit steps in the
program serves as a general guidance as to
reflection of documental understanding between
the auditors and the Dean for the scope required
to comply in an effective and efficient manner
generally accepted accounting standards and
objectives.
 OTHER PLANNING CONSIDERATIONS
Before planning any compliance audit, the auditors
should determine if the Engineering and Technology
Program be subjected to the compliance auditing
standards coverage. If the standard is not applicable to
the aforementioned program, the audit should be
cancelled.
Materiality and compliance assessment are integral
parts of the planning process and should be considered in
developing the extent of compliance tests.
If the applicability of standard had determined, the
auditors should consider the provisions of the standard
are significant of the program, the magnitude of reliance
that may be placed on its system of internal control to
assure compliance, and the results of other relevant
audit.
 Preliminary Steps

Research Planning

Entity Familiarization

Compilation and Evaluation

Adjustments
 AUDITEE

1. Engr. Cora Hurboda

2. ETP Faculty Members
3. Head and/or Director of the Offices
directly affected by the Compliance
Audit (Library, PMO)
 Preliminary Steps

Research Planning

Entity Familiarization

Compilation and Evaluation

Adjustments
 AUDIT DURATION
Activity Date
Client / Entity / Business Enterprise Finding June 12 June 30
Planning and Meeting July 10 July 21
Research and Entity Familiarization July 21 July 31
Audit Charter and Audit Observation Check July 31 Aug 9
List Making/Drafting
Field Work Aug 12 Aug 23
Compilation Activity and Audit Report Aug 12 Aug 26
Drafting
Finalizing of Audit Report Aug 23 Aug 31
Audit Report Presentation Sept 1 Sept 8
Revisions Beyond Sept 8
AUDIT TEAM
 AREAS OF
EVALUATION
 STANDARDS USED
1. CHED Memorandum Order (CMO) No. 25 Series of 2005
Policies, Standards and Guidelines (PSG) for
Engineering Education
2. CHED Memorandum Order (CMO) No. 29 Series of 2007
Policies and Standards (PS) for the Degree of Bachelor
of Science in Civil Engineering
3. CHED Memorandum Order (CMO) No. 15 Series of 2008
Policies, Standards (PS) for Degree of Bachelor of
Science in Industrial Engineering
4. Other CMOs concerning standards for OJT and Faculty
Trainings
CMO No. 25, S. 2005
AUTHORITY TO OPERATE

PROGRAM OBJECTIVES

ASSESSMENT OF ACHIEVEMENT
CMO No. 25, S. 2005
MINIMUM REQUIREMENTS

INSTRUCTIONAL PROGRAM QUALITY

RESEARCH

COMMUNITY INVOLVEMENT

ADMINISTRATION AND SUPPORT

 CMO No. 25, S. 2005
FACULTY

LABORATORIES
INSTRUCTIONAL
PROGRAM LIBRARY
QUALITY
INSTRUCTIONAL
FACILITIES

INSTRUCTIONAL MATERIALS,
METHODS AND SUPPORT
CMO No. 25, S. 2005
PERSONNEL

ORGANIZATION/
BUDGET
RESEARCH
FACILITIES

OUTPUT
 CMO No. 25, S. 2005
PERSONNEL

ORGANIZATION/
COMMUNITY BUDGET
INVOLVEMENT
FACILITIES

OUTPUT
 CMO No. 25, S. 2005
PERSONNEL
QUALIFICATIONS AND
PERFORMANCE

ORGANIZATION
ADMINISTRATION
AND SUPPORT
GOVERNANCE

SITE AND BUILDINGS

 CMO No. 29, S. 2007
ANNEX I - COMPETENCY
STANDARDS

CURRICULUM
CIVIL
THESIS AND ON-
ENGINEERING THE-JOB TRAINING
REQUIREMENTS
ANNEX III- COURSE
SPECIFICATION

ANNEX IV - SUMMARY OF
LABORATORY EQUIMENTS
 CMO No. 15, S. 2008
ANNEX I - COMPETENCY
STANDARDS

CURRICULUM
INDUSTRIAL
THESIS AND ON-
ENGINEERING THE-JOB TRAINING
REQUIREMENTS
ANNEX III- COURSE
SPECIFICATION

ANNEX IV - SUMMARY OF
LABORATORY EQUIMENTS