Republic of the Philippines

Department of Health
Cagayan Valley Medical Center
Regional Tertiary, Teaching and Training Hospital
Carig, Tuguegarao City, Cagayan
Tel. Nos. (078) 302-0000
PHILHEALTH ACCREDITED

External Training Report

Date: Prepared Checked Approved

MONETTE M. TATTAO HAROLD C. TAMAYAO MELITA T. TAGUIBAO,RN, MAED,

Admin. Assistant I Administrative Officer III DPM
OIC – Materials Mngt. Section Chief Administrative Officer
07/10/2017

Training Subject Internal Control Structure (ICS) for National / Local Agencies
Training Institute Commission On Audit – Regional Office 02
Training Period June 27 - 30, 2017
Trainee MONETTE M. TATTAO

In the four days Internal Control Structure Seminar we have discussed several topics which include
Internal Control Concepts, Policies and Elements, Obtain an Understanding of the ICS, Confirm/ Validate
the Understanding, Conduct Preliminary Evaluation, Test/Assess Controls, Summarize and Report Results
of Evaluation.

In the Internal Control Concepts, Policies and Elements, we learned about what control is and its
three basic types namely: A.)Preventive Controls – are designed to prevent the adverse action or risk from
occurring. B.) Detective Controls – are designed to detect an error and to permit correction through
awareness to the problem. C.) Corrective Controls – are designed to identify a problem and bring it to
management’s attention for resolution and correction. We defined what Internal Control is and discussed
its sub-sets which are the Financial/Accounting Controls, Administrative Controls, Program Controls,
Budget Controls, and the management controls. This was followed by the discussion on the objectives,
importance, general and specific standards and limitations of Internal Control. We also described the five
elements/components of internal control, the Program Control, Control Environment, Risk Assessment,
Control Activity, Information and Communication and Monitoring.

In the Obtain an Understanding of the ICS, we learned about the importance of understanding the
system and the process involved in obtaining an understanding of the elements of the system, which is the
first step in the structural approach to evaluating the system. It involves the techniques Inspection and
Review, Inquiry and Interview. Likewise we had a detailed discussion on the interview approach, the
different Styles of Questioning, Tips in Interviewing, How to Ask a Questions, and the need to listen to
answers/ response. We also discussed the different tools used in documenting our understanding such as,
the Narrative Notes, Flowcharting and The Internal Control Questionnaires (ICQ).

In the topic about Confirm/ Validate the Understanding, we learned the tool in Confirming and
validating our understating as we have documented. We described about the “Walkthrough” which is the
process of confirming the evaluator’s understanding of the agency’s system as recorded in the flowcharts
and for the narratives notes. It involves tracing one consummated transaction through the documented
system.
 In the Conduct Preliminary Evaluation, we learned that it is important to determine whether or not
there are weaknesses resulting from the absence of control. Likewise, we discussed the used of Internal
Control Questionnaires (ICQ) as a tool in the conducting preliminary evaluation and the steps that need to
be followed.

In the Test/Assess Controls, We learned about the purpose of testing controls and what do we need
to consider before we designed the tool for testing controls. Likewise, we were given a list of the
characteristics of a good test, factors that affect test of controls, the tools used and working papers
developed in test of controls. In addition, we also discussed the steps in conducting the test of controls
and what problems we might encounter when testing the controls.

In the topic about Summarize and Report Results of Evaluation, we learned what are the reportable
conditions such as the deficiencies in Internal Control structure (ICS), failure in the operating of ICS and
other factors. We also had a discussion on the development of observations and recommendations,
qualities of good observations/findings and recommendations, and the importance of communicating the
results of ICS evaluation and the deficiencies noted. Finally, we discussed the objectives of preparing the
Audit Observation Memorandum (AOM), its advantages and issues related to it were also discussed.

Recommendation:

First of all, I would like to thank the office of the Chief Administrative Officer and Personnel Development
Committee for giving me the opportunity in attending the ICS seminar, through this I have given the
knowledge to learn on how to help the management establish control on their process and to become an
efficient and effective employee. I recommend that other employee of CVMC should undergo training and
seminar about ICS in order for them to gain knowledge and be able to practice it in their respective
section.