REPUBLIC OF THE PHILIPPINES
COMMISSION ON AUDIT
Commonwealth Avenue, Quezon City, Philippines
RESOLUTION
No. 2001-016
Date December 13, 2001
SUBJECT : Prescribing the Use of the Manual on Levy Audit of Private Entities
WHEREAS, the Commission on Audit (COA) has the constitutional mandate to "examine,
audit and settle all accounts pertaining to the revenues and receipts of, and expenditures or
uses of funds and property, owned or held in trust by, or pertaining to, the government or any of
its subdivisions, agencies or instrumentalities, including government-owned or controlled
corporations x x x x ";
WHEREAS, Section 29 of PD 1445 further vests on the COA visitorial authority over nongovernment entities subsidized by the government, those required to pay levies or government
share, or those which have received counterpart funds from the government or are partly funded
by donations through the government;
WHEREAS, Section 7 (5) a (1), Chapter 3, Book V of Executive Order No. 292 otherwise
known as the Revised Administrative Code of 1987 further mandates the Commission through
its Special Audit Office (SAO) to "conduct x x x x variable scope of audit of non-government
firms x x x x required to pay levies or government shares;
WHEREAS, Section 10 (6) Chapter 4, Book V of the said Administrative Code mandates
the Commission to bring its operations closer to the people by the delegation of authority
through decentralization, consistent with the provisions of the Constitution and the laws;
WHEREAS, Section 6 (2) Chapter I. Title I of P.D. 1445 empowers the Commission Proper
to "promulgate rules and regulations and prescribe standards governing the performance by the
Commission of its power and functions."
WHEREAS, the Commission created a Committee from the Special Audit Office (SAO),
that prepared the Manual on Levy Audit of Private Entities to insure consistent and uniform
application of levy techniques and procedures and the same Committee has completed its
proposed Manual and has submitted the same for approval;
WHEREAS, SAO conducted in 1997 seminars on levy audit with on-the-job training
participated by selected personnel from all COA regions.
NOW, THEREFORE, the Commission Proper resolves, as it does hereby resolve, to
approve the use of the Manual on Levy Audit of Private Entities which is herewith appended as
an integral part of this Resolution.
RESOLVED FURTHER, to enjoin all auditors assigned to conduct levy audit to use this
Manual as their audit guide.
This Resolution shall take effect immediately.