THE BENEFITS OF COMPUTER AUDIT

In today's fast changing world, computer audit is very important. Hereunder are the benefits of computer audit:

Business efficiency – companies are required by company law to safeguard assets by instituting effective internal controls. Computer audit would not only meet this requirement but would give you the facts you need to make important decisions.

Security – computer audit would reinforce your company’s attitude to risk. Thousand of pounds are invested in computers (PCs, workstations, laptops, scanners, etc) it pays to be prudent by mitigating loss, whether by theft, fire or otherwise.

The fact that your company has a computer audit policy and that it is taken seriously acts as a deterrent. This is further reinforced when security measures, such as “electronic tagging”, bar coding, permanent fixing or similar measures are employed.

Having documented records of your computer assets aid your claim for loss under your company’s insurance policy. The existence of reliable records aids the process.

Standardisation – a computer audit promotes a standardised purchasing policy. What could be more practical than applying a purchasing policy that not only saves money but also reinforces values, such as brand, efficiency and time?

Don’t assume that all computer equipment comes with quality parts and that they are subject to the same quality control standards. Likewise, not all retailers give the same guarantee! This is where a computer audit could provide valuable information.

Asset tracking – at the point where computer equipment arrives in the company they should be tagged to aid tracking, accounting and ultimately, control against loss. If these assets are not tracked or traceable, they could easily disappear from the company. A computer audit would capture all computing equipment, whether they are included on the asset register or not.

Asset replacement policy – computer audit assists your replacement policy by identifying ageing assets that present potential operational risk to your business. Your accounting policy may provide for non-capitalisation or write off over two to four years, however computers will be used until they are incapable of being sustained.

Such a policy does not help your company in maximising efficiency and productivity. This plays into your competitor’s hands, surrendering to them your competitive advantage. If your business relies on latest technology, it’s imperative that obsolete computers are systematically identified and replaced.

Accounting – computer audit will ensure the completeness of your fixed asset register and the accounting transactions that are processed in your ledgers.

Cost control – computer audit aids the budgeting and timely replacement of computer equipment. It reduces substantially the guesswork in constructing the relevant capital expenditure budget.

Competitive advantage – whether being the quickest to market, having the latest technology or efficient processes is what sets you apart from your competitors it is essential that you make computer audit an essential company tool. Factors that contribute to maintaining competitive advantage cannot be ignored and a Finance Director or IT Manager would be grossly negligent in failing to have answers on this important matter.

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COA charts seven policy

By Rolando S. Macale

"INCREASED VIGILANCE Against Fraud, Waste and Abuse!" rung out through the walls of the Oxford Hotel convention hall as the officials, from the newly confirmed Chairman, Commissioner, Assistant Commissioners and Directors of the Commission on Audit voiced out the conference theme like a mantra when they converged at the Oxford Hotel, in Clark Field, Pampanga. After a brief yet warm welcome address by outgoing Assistant Commissioner Lourdes B. Dimapilis, the COA officials buckled down to work with Commissioner Juanito G. Espino,Jr. calling all hands on deck, declaring "we will take the road together as we mix the cement of expectations and gravel of challenges for better COA infrastructure development," and calling on every COA official to hold on to the team, for " doing what is best for the Republic and for the Commission is the ultimate motivation that sets us together and keeping us one in the pursuit of quality service."

Then with an environment scanning, Commissioner Espino walked the group through almost a decade of COA history to the current realities that challenge COA and its faithfulness to its mandates.
With his retrospect, graphs and numbers, Commissioner Espino laid out a scenario that, everything else considered, called "for us to pursue the labor and hard work …for the betterment of the service, "with an admonition that "we keep the passion to preserve the dedication and enthusiasm to help the Commission in pursuing quality public service."

Addressing the COA officials gathered in a planning conference for the first time as Chairman of the Commission, Chairman Reynaldo A. Villar expressed concern given the present state of affairs in Philippine society greatly contributing to COA’s heavy task, "the task of being the guardian of the nation’s resources is burden a little too heavy."

Notwithstanding the prospect of a backbreaking attempt to achieve the Commission’s goals and objectives, the difficult process will have to begin with one single step, namely, by laying out a seven-pronged agenda, 7 Policy Directions, to wit:

1. Risk-Based Audit Approach ( RBAA )
2. Revisiting Pre-Audit
3. Organizational Restructuring
4. Settlement of Accounts
5. Assessment of e-NGAS Implementation
6. Keeping of the General Accounts
7. Intensified Fraud Audit

Chairman Villar expressed his confidence in the support and dedication of the COA officials gathered in the conference, COA’s corporate mind, to chart with him "the right path to our destination."

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Some of these seven policies like pre-audit and organizational restructuring are already in place.

COA Reinstitutes Selective Pre-audit

The reinstitution of selective pre-auditing effective July 1 is seen to curb anomalies in government transactions, according to the director of the Commission on Audit-Regional Office 13. Lawyer Roy Ursula said that the COA will implement a selective pre-audit on government transactions nationwide based on COA Circular 2009-002 dated May 18 of this year as there have been “documented cases that have proven to be weak in internal control.”The pre-audit is an examination of documents supporting a transaction or series of transactions before these are paid for and put on records, such as cash advances, payments of salaries and terminal leave benefits, payments for infrastructure projects, payments for road right-of-way, payments for procurement of capital assets, goods, and services; payments made through automatic debit advice, releases of funds to non-government organizations/people’s organizations; transfers of funds between government agencies, disbursements from trust funds of local government units and disposal of real property and unserviceable property.It was further learned from Ursula that selective pre-auditing was already practiced then but was lifted in 1995 because at that time, studies showed there was good governance then. But currently, there have been several cases where COA found anomalies in, he said. — Barbara Anne B. Ocaba, STC Masscom intern/MEEV (THE FREEMAN)

I believe that selective reinstitution of pre-audit is necessary to prevent further occurence of anomalies in the government. Checking of documents and inspection of projects before payment is done should really pass by COA's examination to ensure that what is being paid for is reasonable, regular and in accordance with rules and regulations.

Selective Pre-audit

Selective Pre-audit on Government Transactions

Starting July 1, 2009, the Commission on Audit through COA Circular no. 2009-002 dated May 18, 2009, is reinstituting selective pre-audit on government transactions. This is because of recent developments which gave rise to incidents of irregular, illegal, wasteful and anomalous disbursements of huge amounts of public funds and disposal of public property. Indeed corruption is everywhere nowadays, you can see or hear it in the news everyday pointing to the need to consider restoring pre-audit as a deterrent against resurgence of the observed maladies. For a full text of COA Circular no. 2009-002, please click below:

COA Circular No. 2009-002