Administrative Code of 1987/Book V/Title I/Subtitle B/Chapter 6

by Corazon Aquino

Layout 2

Chapter 5—Government Auditing and Accounting

Sec. 38. Definition of Government Auditing.—Government auditing is the analytical and systematic examination and verification of financial transactions, operations, accounts and reports of any government agency for the purpose of determining their accuracy, integrity and authenticity, and satisfying the requirements of law, rules and regulations.

Sec. 39. General Standards.—(1) The audit shall be performed by a person possessed with adequate technical training and proficiency as auditor;

(2) In all matters relating to the audit work, the auditor shall maintain complete independence, impartiality and objectivity and shall avoid any possible compromise of his independence or any act which may create a presumption of lack of independence or the possibility of undue influence in the performance of his duties; and

(3) The auditor shall exercise due professional care and be guided by applicable laws, regulations and the generally accepted principles of accounting in the performance of the audit work as well as in the preparation of audit and financial reports.

Sec. 40. Definition of Government Accounting.—Government accounting includes the processes of analyzing, recording, classifying, summarizing and communicating all transactions involving the receipt and dispositions of government funds and property, and interpreting the results thereof.

Sec. 41. Objectives of Government Accounting.—Government accounting shall aim to produce information concerning past operations and present conditions; provide a basis for guidance for future operations; provide for control of the acts of public bodies and officers in the receipt, disposition and utilization of funds and property; and report on the financial position and the results of operations of government agencies for the information of all persons concerned.