Interviewees:

Mandy Echague (Farm Manager)

Roel Zoleta (Farm owner)

TH E IN TER N A L C O N TR O L
O F Z O LETA P IG G ER Y

ORGANIZATIONAL
STRUCTURE

ORGANIZATIONAL
Farm/Hog Manager
STRUCTURE

ITS
OPERATIONS

DAILY
ROUTINE

Gestation (5 am)

TRANSACTIONS

Others:
a.Paying monthly salaries to its
employees.
b. Meetings with its personnel
regarding different matters.
c.Seminars held with other hog
raisers.
d.General Cleaning (including
disinfecting).

C O N TR O L A C TIV ITIES O F
Z O LETA P IG G ER Y

The follow ing are the specifi

c control
procedures ofZoleta Piggery that are
relevant to fi
nancialstatem ent audit:
A. Performance Review
The manager, helpers, as well as the owner, evaluate themselves
every month based on their performances. Moreover, if there will
be some circumstances that might possibly happen in their
piggery, the owner (or the manager) will call the raisers for a
meeting in order to plan ahead of time and to execute some
solutions based on the circumstances, especially when it comes to
fortuitous events.

They attend seminar every Friday at Sariaya, Quezon, along with

other hog raisers from different places. Once they obtained
knowledge from the seminar regarding hog raising procedures
and tips, they apply it necessarily and it helps them to raise more
pigs.

B. Information Processing Controls

1.Proper Authorization of Transactions and Activities
With regards to this, the manager is the one who is
authorized to transact to either buyers, deliverers and even
other hog raisers. Once he has done with the transaction, he
documents it and then whatever amount has been incurred, he
reports it to the owner immediately. The owner will be the one
who records the transactions, and he also computes every
amount that has been incurred.
The manager consistently does this to certain business
transactions. He also inspects the documents to check if the
records are lost. Confidentiality is maintained by the manager
and owner as well.

2. Segregation of Duties
Farm/Hog
Furrowing
Nursery
Starter
Grower
Manager
Division
Division
Division
Division

There are five divisions in

the piggery:
Gestation
Furrowing (25-28 days old)
Nursery (35-75 days old)
Starter (76-90 days old)
Grower (91-114 days old)

In each station, there is one hog raiser assigned in the mentioned station.
In furrowing, the pigs are still breastfeeding, so they are not being fed any
hog pellets. In nursery, these are the pigs being separated. In starter, this is
when they will feed them BMEG hog starter pellets and when they reach in
the grower stage, they will feed them BMEG hog grower pellets.
When there is a pig giving labor, the piglet/s will be immediately injected
by a hog raiser wherever station he is at, so that it will never be prone to
such virus-infected diseases. Then, the mother pig will be the first priority to
be fed so that she will maintain her endurance in feeding her piglet/s.
The grower hogs are the ones being allowed to sell, once a buyer will be
interested in it and calls immediately. When it comes to selling the hogs, the
manager, as well as the other hog raisers, will be the one to carry the pig to
the buyer and the selling price will depend on its size, age or maybe even

3. Adequate Documents and Records

The manager makes sure that documents and transactions being
recorded are adequate enough to trace the transactions that will be
reported to the owner. This is also for the assurance of having
consistent completeness.
3. Access to Assets
In each station
of the piggery, they always have periodic counting
n
of hogs to make sure that they are all complete and will not be
subject to embezzlement. They also adopt appropriate policies so
that they will have access to their resources. One of their policies
being implemented strictly and effectively is that, for the purpose of
security, only authorized persons are allowed to enter the piggery,
because some of the outsiders might be threat to embezzlement of
their resources, unless there is proper authorization from the owner
or manager.

piggery, he said we are not allowed to enter inside. We wondered why,

because we were just requesting for an interview. Then he said, just talk the
owners daughter to ask for a permission to enter. After we talked to her, she
led us on our way inside the piggery. There are two ways to get inside: the
gate and the white door. We are only allowed to enter on the white door.
When we opened it, the floor was wet and it made us feel strange about it.
We struggled to enter inside because the level of water was a bit high. After
we entered, the owner, Mr.Roel Zoleta,personally talked to us. He also said
we are really not allowed to enter inside. We wondered again why. But then,
he said he would let the farm manager to do the interview because he was so
busy.
We realized one thing even before we did the interview. Its the internal
control itself. They have really strong restriction when it comes to
outsiders who want to come inside the piggery. Besides, when we talked to
the owner, he is kind, but at the same time, strict. His attitude towards us is
also one of the internal control considerations. We noticed that he maintains
his professional behavior, which is his control environment itself.
According to Mr. Mandy Echague, the farm manager, when we asked why
we are strictly not allowed to enter inside, its because its for the purpose of
biosecurity. The biosecurity is related to the white door we entered, that
has a wet floor with some sort of chemical being mixed on the water.
Stepping on it is called footbath, to disinfect viruses that might be emitted
by the outsiders who want to enter inside and might be the reason for the
pigs to get sick. Also, in order to secure their resources from being
embezzled, there are dogs even before you enter in the exact location. Thats

According to Mr. Mandy Echague, the farm manager, when we

asked why we are strictly not allowed to enter inside, its because its
for the purpose of biosecurity. The biosecurity is related to the white
door we entered, that has a wet floor with some sort of chemical
being mixed on the water. Stepping on it is called footbath, to
disinfect viruses that might be emitted by the outsiders who want to
enter inside and might be the reason for the pigs to get sick. Also, in
order to secure their resources from being embezzled, there are dogs
even before you enter in the exact location. Thats why there is
already a dog watching over us even before we enter.
When it comes to records and documents, the owner is the one
who take care of those. With due care, he is able to maintain the
completeness of his records and documents.
4. Independent Checks on Performance
As stated previously, with their appropriate policies being strictly and effectively
implemented,the objective is being achieved. This is also done by means of
periodic counting of their resources, checking the completeness of the
documents and transactions being recorded and other matters. They always
make sure that all their resources are adequate enough and all their documents
are not inappropriately recorded

Thats all!!!!
Thank you for
listening!