Internal Audit Unit in the Public Sector: Impediments and Prospects in its Establishment in the Provincial Government of Negros Occidental

Abstract by Britt John D. Ballentes (JD1 SY 2020-2021)

Internal Audit has been expanding as a profession facilitated by the realization of its value-adding function in the organization both in private and public practice. In context, internal audit is the evaluation of management controls and operations performance, and the determination of the degree of compliance with laws, regulations, managerial policies, accountability measures, ethical standards, and contractual obligations. It has been recognized not only locally but also in abroad. The International Organization of Supreme Audit Institutions (INTOSAI), an organization of 184 countries issued guidelines for Internal Control Standards for the Public Sector which the Philippines anchored its policy framework for internal audit. The Philippines has been initiating the establishment of an Internal Audit Unit in all agencies and departments of the government as early as 1960s with the enactment of Republic Act No. 3456 (Internal Auditing Act of 1962). However, more than half a century later, compliance with the national mandate has yet to be substantially accomplished.

This study presents a description as to the level of compliance, specifically, of the Provincial Government of Negros Occidental with the thrust of the administration to require the Local Government Units to have its own Internal Audit Unit. Likewise, the discussion includes the initiatives of the province as to the establishment of this function, the various impediments that it encountered, and the potential of this unit in the furtherance of the endeavors of the Negros Occidental.