Introduction

Auditing refers to a systematic and independent examination of the book of

accounts, documents and vouchers of an organization to ascertain how far the present
financial statement are true and fair in view of the concerned entity. While Internal
Auditing is an independent, objective assurance and consulting activity designed to add
value and improve the companys operations. In this report as a part of the course
requirement in Accounting 9, we conducted an interview with a person suitable to show
and share his knowledge of how auditors react in some issues that they themselves are
facing right now. We would be asking random questions that are formulated by the
reporters. In this report we will know how can an auditor exercise his objectivity and
independence to evaluate the effectiveness of risk management, control and processes.
Objectives
Stated below are the objectives set by the reporters to accomplish its aim, which
is to know more about Auditing or Internal Auditing through interviewing an expert.

To test past transactions to discover problems and control issues.

To look forward, anticipate risks and help navigate the potentially problems on

the horizon.
To help the CAE in structure audit work to have more relevance in the job to
assist organizations with being profitable, providing good customer service and

staying in compliance.
To audit risks, an auditor needs to understand strategy.
To know the competencies of the internal audit staff if they keep up with the

evolution of the environment and the business.

To know if the internal auditors have a duty to know who regulates their company
and its departments, and research the regulations that might impact any internal

audit being planned.

To have knowledge if their financial services in the organization is performing
distinct audits on a specific compliance issue across the entire organization,

making sure processes, controls and governance

To know if the exceptions and anomalies in the organization are reported upward
in a timely fashion

To actually know if management and the board of directors are providing an

independent perspective or point of view on the overall risk profile of the
organization.

Body
The reporters chose to portray all the happenings during the interview through
making a parody of the morning show, Kris TV. In the start of the show, the hosts Kris
Aquino (Anna Gayle S. Aliganga) together with her personal assistant, Darla (Apple
Grace L. Portarcos) visited the house of Erich (Venice Erika R. Aumentado). The house
of Erich in the video clip was featured, there were many chitchats together and the main
highlight was that the hosts interviewed Mr. Noel F. Tabasa.
Mr. Noel F. Tabasa was our interviewee. He is currently a Consultant of the
Budget Builders, Inc. and he has also audit functions, a part owner of a corporation and
the owner of Elektrikes Trading, Parodeees Tees and Chewab Clothing. He attained a
degree as a chemical engineer at the University of San Carlos. Though his career now
is not inclined to his finished course, Mr. Tabasa said that it does not take to be an
internal auditor to perform some audit functions because even an owner of a business
does audit in the operations to ensure the profitability of the business. He shared to us
what were his past job positions before his current profession and also his significant
accomplishments. We asked him if what is the essence of Internal Auditing and his
answer made us understand the importance of it in any organization. Security of the
business operations from fraud and mistakes. is an excerpt from his answer. He also
told us the steps or processes that is usually done in auditing and how inspection
reports are posted and communicated. We also questioned if for him, do auditors have
a significant role in a company and he answered Yes. and explained why. As a finale,
we asked for a conclusion of what is really Internal Auditing. Overall, it was really a
remarkable experience. We learned a lot from him that we believe will help us in our
studying and in our future pursuits. As we bid goodbye, we cant help but admire his
humility and professionalism. Indeed, Mr. Tabasa was the perfect person for this project.
Below is the background and the work experiences of Mr. Noel F. Tabasa.

Questions
Below are the questions of the hosts to Mr. Noel Tabasa, and the following are
his answers.
1. What was your college degree and from what school?
I graduated Chemical Engineering, and I am from University of San
Carlos.
2. What were your most significant accomplishments?
My significant accomplishments were first, I became the corporate planner
of the Metropolitan Cebu Water District when it was still a private corporation and
that I was the one who designed the rates. And also, when I was the Technical
Consultant on Finance and Administration, Aklan Electric Cooperative.
3. For you Sir, what is the essence of Internal Auditing?
The essence of Internal Auditing is that it improves the company. The
companys health and its successes relies also on Internal Auditing.
4. What are the steps or processes that you usually do before conducting and
audit?
Determine in what aspect or area that should be audited, set standards
and gather evidences from different departments. Compare the assertions made
by the management and then determine problems if such exist. Make
recommendations to the management on how the problem would be resolved.
5. How are inspection reports posted and communicated?
Usually, corporations already have reports and that auditors would only fill
up it will be communicated to the management.
6. What are the problems you encountered and how did you deal with these?
Usually, when conducting an audit, the people are usually the problem.
Sometimes they wont cooperate and when they cover something which is wrong
or fraud, they are so hardheaded when I request a document. I resolve this kind
of problem by communicating to the person involved, and if he or she would not
cooperate, I would recommend the management to evaluate the staff for this kind
of behavior. Also, communication and being polite is the key for a harmony
relationship among others.
7. For you, do auditors have a significant role in a company? Why?
Auditors play a significant role in a company in a way that the auditors see
to it that the risks are minimized, that the management is improved and that the
processes are followed. They affect the wealth and successes of the company.

8. What would you change about an auditors role, if you could?

Theres nothing that I want to change an auditors role. Only that all the
employees of the organization should have equal roles in the company. They
may perform different tasks but they are the ones also which would affect the
well-being of the company.
ABOUT NOEL FIGURACION TABASA
He was born on October 7, 1962 in Cebu City, Single. He graduated from the
Cebu City National Science High School. He earned his Bachelor in Chemical
Engineering from the University of San Carlos.
A. Work Experience
1. Technical Assistant to the Board, Metropolitan Cebu Water District (MCWD)
2. Assistant Manager, Maintenance Department, MCWD
3. Technical Assistant to the General Manager, MCWD
4. Manager, Corporate Planning and MIS, MCWD
5. Plant Manager, Shemberg Biotech Corporation
6. Division Manager, Utility Economics Division, Aboitiz Equity Ventures
7. Sales Manager, Shemberg Corporation
8. Country Manager, DERA Food Technology, Asia
9. Marketing Manager, Budget Builders Inc.
10. Technical Consultant on Finance and Administration, Aklan Electric
Cooperative, Inc. as part of the turn-around consulting group to turn around
the ailing cooperative by virtue of the order of the National Electrification
Administration
11. Currently, Managerial Consultant of Budget Builders Inc. and Electricity
Transmission Supplies Corporation
12. Part Owner of Sitari Bakers Choice Corporation
13. Owner of Elektrikes Trading, Parodees Tees and Chewab Clothing
B. Core Competencies and Lectures on:
1. Problem Solving and Decision Making by Kepner and Tregoe
2. Strategic Planning
3. Operations Planning
4. Operations Analysis
5. General Management
6. Corporate Planning

C. Travels
1. Asia: Bangkok, Kuala Lumpur, Singapore, Beijing, Shanghai, Canton, and
Hongkong
2. America: Bangoor, Maine (US), Los Angeles, California (US), Chicago Illinois
(US), Saint Louise (US), Louisiana (US), Cali (Columbia), Sao Paolo (Brazil),
Venezuela
3. Europe: Barcelona (Spain), Madrid (Spain), Paris (France), Normandy
(France), Hamburg (Germany), Dusseldorf (Germany), Frankfurt (Germany),
Brusseld (Belgium), Antwerp (Belgium), Bruge (Belgium), Copenhagen
(Denmark), Amsterdam (Netherlands)
Conclusion
Internal audits provide a number of important services to company management.
These include detecting and preventing fraud, testing internal control, and monitoring
compliance with company policy and government regulation. Through this interaction
with Mr. Noel F. Tabasa, we learned a lot of things in the corporate world. He did not just
share his knowledge to us about Auditing and Internal Auditing, rather he shared so
many things about the corporate world. He clearly illustrated how Auditing is essential in
the wealth and the success of an organization and that Auditing plays a significant role
of the company which would improve the risks, management and its processes. He also
stated that in internal auditing, its purpose is not only to find and discover the fraud and
mistakes, but its main purpose is to improve the companys operations, risks that exists
and its processes. Even though that the Internal Auditor is employed in the company, he
or she must exercise two qualities which are Independence and Objectivity. She should
be free from conditions which would threaten his ability as an internal auditor activity to
carry out internal audit responsibilities in an unbiased manner, and that she should
maintain a mental attitude while performing engagements.

University of San JoseRecoletos

Magallanes Street, 6000, Cebu City, Philippines

SUBMITTED IN PARTIAL FULFILLMENT OF REQUIREMENT

OF THE COURSE

Accounting 9
Internal Auditing

SUBMITTED TO:
MS. MARJURIE LOURINCE E. ZANORIA
SUBMITTED BY:
Aliganga, Anna Gayle S.
Antioquia, Kate Loline
Aumentado, Venice Erika R.
Penaflor, Mariel P.
Portarcos, Apple Grace L.