Tulip St. Area B. Camarin Caloocan City
ON THE JOB TRAINING
In Partial Fulfillment
Of the Course under
BPA Subject No.020
COMMISSION ON AUDIT
DOCUMENTATION AND DEFENSE
QUINTIN, BERMARIZ A.
NGS| -| National Government Sector|
LGS| -| Local Government Sector|
CGS| -| Corporate Government Sector|
SSS| -| Special Services Sector|
LSS| -| Legal Services Sector|
GAS| -| Government Accountancy Sector|
PFMS| -| Planning, Finance and Management Sector|
AS| -| Administration Sector|
PDS| -| Professional Development Sector|
| | |
| | |
HISTORY OF THE COMPANY:
Auditing as a tool for effective governance has been recognized and practiced since the Spanish colonial era. One proof of this was the residencia, an inquiry into the administration of an outgoing Governor General and consequently of other officials. Conducted by the Royal Audiencia, it was designed to hold colonial officials to strict accountability for all acts during their term of office. Another was the visita de tierra, a visit of inspection made every three years, which often revealed glaring anomalies in the handling of local government accounts. Colonial officials also performed investigations akin to audit at the time. One was a fraud audit of sorts for galleon trade conducted in the early 1700s. Another, which involved the inspection of the Misericordia de Manila in 1751, had shades of financial audit. In 1739, a Royal Decree by the King of Spain established the royal exchequer which was the national treasury of that era. All books of accounts of the Spanish colonial government were required to pass through the scrutiny and certification of the contador or the accountant and that of the oidor, a representative of the Spanish crown, who by the nature of his duties may be considered as the precursor of the auditor. By mid-19th century, the Tribunal de Cuentas was created. It functioned as the supreme auditing institution of the islands until the end of the Spanish rule in 1898. Staffed by a president, two auditors, a fiscal, accountants and examiners, the Tribunal had exclusive jurisdiction over the audit of all financial matters affecting the colony. These personnel, all appointees of the King, were required by law to review all vouchers and to cross-check them against corresponding entries in the books of accounts. The Birth of an Institution
Nurturing a nascent government requires a mixture of boldness and prudence. And at a time when the early Philippine government was being zealously fleshed out by its American rulers emboldened by their newfound power, then President William McKinley ensured a healthy dose of prudence in these activities. An unnumbered memorandum signed on May 8, 1899 by McKinley gave birth to the Office of the Auditor for the Philippine Islands. By 1900, the Office had become a fixture of government. The civil government was formally ushered in 1901 under William Howard Taft. The major change in the nature of government had ripple effects in the structure of government. One result of such change was the conversion of the Office of the Auditor of the Philippine Islands to the Bureau of the Insular Auditor. However, it was more than a mere change of name. A provincial audit division was created for the Bureau. Moreover, double-entry bookkeeping was introduced which accounted for fuller analysis of settlements and ensured a higher degree of correctness. In 1905, a change of guard took place. Taft resigned as Civil Governor and was replaced by Luke E. Wright who led as Governor General. Under his administration, Act No. 1402 was passed whereby the Bureau of the Insular Auditor was renamed the Bureau of Audits.
Growth and Changes: Becoming a Stronger Institution
As the nation celebrated its independence with the promulgation of the 1935 Constitution, the institution also reached...