4. The Municipal Accountant did not prepare Journal Entry Vouchers (JEV) for
book reconciling items in the Bank Reconciliation Statements (BRS) totaling
₱1,314,220.44, resulting in an understatement of both the Cash in Bank and
Liability accounts by the same amount.
We have conducted our audit in accordance with the International Standards of
Supreme Audit Institutions (ISSAIs). Our responsibilities under those standards are
further described in Auditor’s Responsibilities for the Audit of the Financial
Statements section of our report. We are independent of the agency in accordance with
the ethical requirements that are relevant to our audit of the financial statements, and
we have fulfilled our other ethical responsibilities in accordance with these
requirements. We believe that the audit evidence we have obtained is sufficient and
appropriate to provide the basis for our qualified opinion.
Responsibilities of Management and Those Charged with Governance for the
Financial Statements
Management is responsible for the preparation and fair presentation of the financial
statements in accordance with IPSASs, and for such internal control as management
determines necessary to enable the preparation of the financial statements that are free
from material misstatement, whether due to fraud or error.
Those charged with governance are responsible for overseeing the LGU’s financial
reporting process.
Auditor’s Responsibilities for the Audit of the Financial Statements
Our objectives are to obtain reasonable assurance about whether the financial
statements as a whole are free from material misstatement, whether due to fraud or
error and to issue an auditor’s report that includes our opinion. Reasonable assurance
is a high level of assurance but is not a guarantee that an audit conducted in accordance
with ISSAIs will always detect a material misstatement when it exists. Misstatements
can arise from fraud or error and are considered material if, individually or in the
aggregate, they could reasonably be expected to influence the economic decisions of
users taken on the basis of these financial statements.
COMMISSION ON AUDIT
By:
REGIE R. BAOY
State Auditor II
OIC- Audit Team Leader
May 26, 2025
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