Internal Auditing in Philippine Government: Initiatives, Issues, and Prospects

Abstract

Internal auditing is gaining recognition as an important tool to improve organizational performance. In many countries, both public and private sectors advance internal audit as a profession, process, and body of knowledge. The Philippines is one country that put in place the policy framework mainstreaming internal audit in government operations. However, after more than four decades since the first law on internal auditing was enacted, a significant number of government agencies are unable to officially establish an internal audit unit (IAU). This paper answers the following questions: (1) What initiatives have been undertaken by the Philippine government to institutionalize internal audit services (IAS)? (2) What are the issues that continue to confront government agencies in establishing and enhancing IAUs? (3) What prospects remain in store for internal auditing in the Philippine government?