Republic of the Philippines ‘S COMMISSION ON AUDIT | 3/45 Conumenwealth Avenue, Quezon City, Phippiokss "OF Om RESOLUTION SUBJECT : Adoption of Financial Audit Manual (FAM) for the Commission on Audit WHEREAS, pursuant to Section 2, Article IX-D of the 1987 Philippine Constitution, and Chapter 2, Section 25 (4) of Presidential Decree (P.D.) No. 1445, the Commission on Audit (COA) is mandated to promulgate auditing rules and regulations; WHEREAS, pursuant to and by virtue of the powers vested in it by the foregoing laws, the Commission issued COA Resolution No. 2013-006 dated January 29, 2013 adopting the COA's Framework of Professional Standards as updated under COA Resolution No. 2016-007 dated May 3, 2016; ‘WHEREAS, the COA’s Framework of Professional Standards was developed, adopting the International Organization of Supreme Audit Institutions (INTOSAI) Framework of Professional Pronouncements (IFPP) applied in the Philippine Public Sector, considering that COA is a member of the INTOSAI; WHEREAS, all International Standards of Supreme Audit Institutions (ISSAIs) were adopted as the Philippine Public Sector Standards on Auciting (PPSSA) under the following COA Resolutions: © COA Resolution No. 2013-007 dated January 29, 2013 © COA Resolution No, 2014-011 dated May 07, 2014 COA Resolution No. 2016-010 dated May 10, 2016 WHEREAS, there is a need to develop and adopt a FAM compliant with ISSAIs 10 guide COA Auditors in conducting financial audits, WHEREAS, the COA entered into » Memorandum of Understanding with the Asian Development Bank (ADB), for a Regional Capacity Development Technical Assistance (R-CDTA) for the Project: Enhancing Roles of Supreme Audit Institutions in Selected ASEAN Countries. One of the objectives of the R-CDTA is the development and adoption of a FAM compliant with ISSAls; ruWHEREAS, COA Office Order No. 2016-185 dated February 29, 2016 was issued creating the ADB Technical Working Group (TWG) which shall be responsible in developing the FAM; WHEREAS, the ADB TWG completed the development of FAM compliant with ISSA NOW, THEREFORE, be it RESOLVED, as itis hereby RESOLVED, to adopt the FAM developed by the ADB TWG, to guide COA Auditors and Audit Teams in the conduct of financial audit ofall audited agencies of the government, starting in Calendar ‘Yeor (CY) 2018 and thereafter. RESOLVED, FURTHER, that the ADB TWG, shall evaluate the results of the first year implementation of the FAM and undertake revisions thereon as appropriate, ‘Thereafter, a newly constituted TWG with representatives from the audit sectors shall update the FAM, as the need arises, to ensure continuous compliance with ISSAIs. RESOLVED, FINALLY, that the AM shall be launched in the COA website immediately upon its adoption, and shall be included among the regular training courses of che Professional and Institutional Development Sector starting in CY 2019. ‘This Resolution shall take effect immediately. Done this 22nd day of _March 2019 __ at Quezon City, Philippines. Bo SESE eee CPL os il, ROLAND C.PONDOC