LEARNING MODULE NO.

9
ETHICS AND ACCOUNTABILITY IN SERVICE

SUBJECT MATTER
Courses: Competencies:
Topic The Commission on Audit of the Republic of the
Philippines
Sub Topic History
Constitutional Position
Subject Integration Authority
References

I. Learning Outcomes:

 Demonstrate familiarity with the history of auditing in the Philippines.

 Explain the influence of Spanish and American colonialism to the auditing agency of the nation
through essay.
 Express individual’s idea regarding the importance of auditing through essay.

II. Learning Outcomes:

The Commission on Audit of the Republic of the Philippines

History

Under the Spanish colonial rule, the Royal Audiencia, a high court, presented its audit reports on
the financial condition of the archipelagic colony to the authority. Then, the Tribunal de Cuentas became
the highest institution of audit having then exclusive right to conduct audits of all concerning the state
finance. With the legal influence form the United States, then an audit agency was set up for the
Philippines. Its audit system requires analyzes of all transactions and started to apply the true practices of
audit. In 1935, General Auditing Office (GOA) was formed is responsible to conduct audits of all
financial reports, also audit of all expenditures and assets of the government. The GOA was reestablished
after the Second World War and changed its name to Commission on Audit (COA) under the 1973
constitution. It is now considered as an important partner of the government in implementing its national
development programs and in improving the public welfare of the Philippine people.

Constitutional Position

The Philippine constitution rules that COA is an independent institution. COA submits its annual
reports to be president and congress within then timeframe set by the law. Its reports cover the financial
and operational condition of the government, subdivisions, state institutions, and all other organizations
concerned.

The COA is one of the three constitutional commissions in the Philippines, alongside the Civil
Service Commission (CSC) and the Commission on Elections (COMELEC). Its independence is
enshrined in the 1987 Constitution of the Philippines, under Article IX, making it a constitutional body.

 Independence: The COA operates independently from other branches of government—

executive, legislative, and judiciary—ensuring that its functions of audit and oversight are free
from political influence.
 Appointment and Term: The COA is composed of a chairperson and two commissioners, all of
whom are appointed by the President for a fixed term of seven years without reappointment. This
tenure ensures the continuity of oversight without political interference.
 Power and Duties: The Constitution grants the COA the authority to examine, audit, and settle
all accounts of government funds and properties. Its audit covers all government entities,
including those at the national, local, and government-owned or controlled corporations
(GOCCs).

Authority

The constitution rules that COA has the right to conduct audits of all financial reports the
government. The audit targets include income, expenditure, uses of the governmental resources. The
COA is responsible to determine regulations on accountancy and audit system. It also has an exclusive
authority to determine regulations on accountancy and audit system. It also has an exclusive authority to
determine the coverage and technique of its audit, and bans any regulations that limit the coverage of its
audit.
The COA’s authority is broad and comprehensive. It has the constitutional mandate to:
1. Audit: The COA has the power to audit the finances of government agencies, offices, and
instrumentalities. This includes examining government revenues and expenditures to ensure
compliance with laws, rules, and regulations.
2. Settle Accounts: It has the authority to settle disputes regarding the use of public funds and
property and to ensure that all government expenditures are justified and properly documented.
3. Issue Guidelines and Rules: COA has the authority to issue audit guidelines and standards for
the proper utilization of public resources, helping to promote transparency and accountability.
4. Report Findings: The COA regularly publishes audit reports that detail its findings on the
financial operations of government offices and agencies. These reports are used as a basis for
legislative oversight, policy development, and prosecution in cases of misuse of public funds.
5. Disallowance and Recommendations: In cases where public funds are found to have been spent
improperly or without authorization, the COA can issue notices of disallowance and recommend
actions to recover the funds.

The COA’s role is essential in promoting transparency, accountability, and good governance in the
Philippines. Its authority allows it to act as a watchdog over government finances and ensure that public
resources are used for the benefit of the people.

III. Learning Activities:

Directions: Answer the item diligently. Internet copy –pasting of some statements to answer some
questions is strictly prohibited.

Constitutional Independence (20 points)

Answer the following questions based on the COA’s constitutional position:
1. Why is the COA considered an independent constitutional body?
2. What is the significance of COA’s independence from the executive, legislative, and
judiciary branches?
3. Describe the composition and term limits of the COA’s leadership. Why are these
important to its independent functioning?
IV. Learning Evaluation

Excellent Good/Satisfactory Need improvement

(3) (2) (1)
Essay/Statement Brilliant composition of Well composed, words Answer is too dull and
Content statement are properly used. not properly composed.
Relativity to the topic, Feedback/answer is Fair, thoughts are Answer is expressed
questions, statements done with excellence. properly expressed but just to comply.
Reached or surpassed not fully competent
the expectation.

V. Enrichment/Application Activities:

Directions: Answer the item diligently. Internet copy –pasting of some statements to answer some
questions is strictly prohibited.

The Importance of COA in Good Governance (30 points)

In a short essay (200–300 words), explain how the COA contributes to transparency, accountability, and
good governance in the Philippines. Focus on its role as a watchdog of public finances and how its audit
functions help in maintaining public trust in the government.