RESOLUTION

No. : 2018-007
Date : February 1, 2018

SUBJECT : Adoption of the Internal Auditing Standards for the Philippine Public Sector (IASPPS) and Internal Control
Standards for the Philippine Public Sector (ICSPPS) in all government agencies

WHEREAS, Section 2(2), Article IX-D of the 1987 Constitution vests in the Commission on Audit (COA) the exclusive
authority to promulgate auditing rules and regulations;

WHEREAS, Section 2(1), Article IX-D of the 1987 Constitution provides that where th e internal control system of the
audited agency is inadequate, the Commissio n may adopt such measures, including temporary or special pre-audit, as are
necessary and appropriate to correct deficiencies;

WHEREAS, Items 3 and 4 of Section 25, Chapter 2 of Presidential Decree No. 1445, also known as the Government
Auditing Code of the Philippines, mandate the COA to institute control measures and promulgate auditing rules and regulations;

WHEREAS, Section 4 of Republic Act No. 3456, or the Internal Auditing Act of 1962, approved on June 16, 1962, as
amended by Republic Act No. 4177, provides that the Auditor General shall be responsible for the promulgation and enforcement
of general policies, rules and regulations on internal auditing; and shall also develop for execution, working plans and training
programs to maintain continuously the effectiveness of these internal audit services;

WHEREAS, Goal B of the COA Strategic Plan for 2016-2022 states that the Commission shall empower and enable
government agencies through strengthening the Internal Control System and assisting in the effective implementation of internal
audit services;

WHEREAS, COA Office Order No. 2016-301 dated April 13, 2016 created the Internal Auditing Research and
Development Committee (IARDC) to develop the Internal Control Framework and the Philippine Internal Auditing Standards
(PIAS);

WHEREAS, in COA Resolution No. 2016-016 dated September 30, 2016, this Commission resolved to adopt the Philippine
Internal Auditing and Philippine Internal Control Frameworks for Public Sector to provide authoritative guidance essential for the
professional practice of internal auditing and the criteria for establishing and evaluating internal controls;

WHEREAS, the Government Accounting and Auditing Manual Volume III containing the Internal Auditing Standards and
The Handbook on the Internal Control Structure issued by this Commission in 1991 and 2002, respectively, need to be updated to
keep abreast with the new developments in internal controls and the practice of internal auditing;

WHEREAS, after study and review of the provisions of the International Organization of Supreme Audit Institutions
Guidance for Good Governance (INTOSAI GOV), Committee of Sponsoring Organizations of the Treadway Commission (COSO)
Internal Control-Integrated Framework (ICIF), National Guidelines on Internal Control System (NGICS), Philippine Government
Internal Audit Manual (PGIAM), International Professional Practices Framework (IPPF) promulgated by the Institute of Internal
Auditors (IIA), and other relevant laws, rules and regulations, the IARDC developed the Internal Auditing Standards for the
Philippine Public Sector (IASPPS) and the Internal Control Standards for the Philippine Public Sector (ICSPPS);

WHEREAS, the IASPPS, as aligned with the prevailing international principles and standards, provides authoritative
guidance essential for the professional practice of internal auditing, thereby enhancing the quality and uniformity in internal
auditing practices by Philippine government agencies;

WHEREAS, the ICSPPS provides the criteria for establishing, implementing, monitoring, and evaluating internal controls
that will enable Philippine government agencies to achieve their objectives on operations, reporting, compliance, and
safeguarding of assets;

NOW, THEREFORE , this Commission resolves as it is hereby resolved, to adopt the IASPPS and ICSPPS in Annexes A
and B, respectively, attached to this Resolution and made integral parts hereof.

This Resolution shall take effect on February 1, 2018.

Done this 1st day of February , 2018 at Quezon City, Philippines.

(SGD.) MICHAEL G. AGUINALDO

Chairperson

​
(SGD.) JOSE A. FABIA (SGD.) ISABEL D. AGITO
 (SGD.) JOSE A. FABIA (SGD.) ISABEL D. AGITO
Commissioner Commissioner

Attachments:

Annex A – Internal Auditing Standards for the Philippine Public Sector (IASPPS)

Annex B – Internal Control Standards for the Philippine Public Sector (ICSPPS)