AUDIT FINDINGS AND

RECOMMENDATIONS
Audit Team:
Dalmacio, Mark Edison
Gomez, Kristine Nicole
Magnayon. Alyza Mae
Peralta, Joe Marie
Valencia, Darwin Paul

FINDINGS

RECOMMENDATIO
NS

1.) Employee Shella is the 1.) The auditors recommend

only one who approves the that Shellas case should be
petty cash voucher.
considered
under

Petty cash voucher - 047

investigation and proper

Petty cash voucher - 049

segregation duties should

Petty cash voucher - 052

be present in terms of

Petty cash voucher - 045

signing petty cash voucher
and other documents.

RECOMMENDATIO

FINDINGS

NS

2.) No authorized signatures

were found on some
purchase voucher and petty
cash voucher.

Petty
Petty
Petty
Petty

cash
cash
cash
cash

voucher
voucher
voucher
voucher

045
050
051
054

2.) The auditors recommend

that proper observation
should
be
placed
in
verifying
signatures
to
every
document
and
supervision to the proper
flow of the disbursement
procedure.

FINDINGS

RECOMMENDATIO

NS
3.)
No
supporting 3.) The auditors recommend
documents
that disbursements should
(e.g. receipts, notice of attach
supporting
payment,
etc.)
were documents when recording
presented on some files.
to ensure validity of the
Payment voucher - 00461
transactions.
Liquidation
Petty cash voucher - 055
forms could also be a
sufficient basis.
4.) Some dates on the
payment voucher and petty
cash voucher, were not
properly aligned to the cash
disbursement
journal,
voucher register, and check

4.)
The
personnel
responsible in recording
transactions should be keen
in
details
(e.g.
dates,
amounts,
particulars,
account titles, etc.)

FINDINGS
5.) Some withholding tax
were
not
recorded
on
registers
and
cash
disbursement journal.
Check 406 and voucher 00459
Check 404 and voucher 00457

RECOMMENDATIO
NS
5.) The accounting manager
should properly monitor
the
corresponding
withholding tax designated
to
every
related
transactions.

6.)
A
possible
ghost
6.) The said employee
employee is existing in
should be traced to the list
petty cash voucher 051 and
of
employees
currently
054
employed in company.
7.) Check number 410 is
7.) The said check should be
deemed
fake
by
the
verified to the bank.
auditors.

FINDINGS
8.) Check no. 409 was
indicated cancelled on the
check register but was
further observed to be
encashed and no note of
cancellation was present on
the check itself.

RECOMMENDATIO
NS
8.) The cash encashed
should be investigated to
verify where did it went and
procedures in cancellation
of
checks
should
be
implemented strictly.

9.) Check 416 was paid late 9.) The auditors recommend
(Due date was 10/27/16 and to pay the bills on time to
the payment was done on avoid possible penalties.
10/30/16).

FINDINGS

RECOMMENDATIO
NS

10.)
Some
transactions 10.)
The
auditors
involved incorrect account recommend that further
titles such as:
reclassification
of
accounts and correction of
Payment
voucher
00457
should
be
debited the account ordinary entries
repairs
and
maintenance conducted.
when the payment was used
for Salary for contractual
employees.
Payment voucher 00469 used
the
account
water
consumption-october
2016
while
its
corresponding
account
on
the
voucher
register was Purchase of
aircon
for
Internal
audit
department.

FINDINGS
11.) The amount written on
the petty cash - 057
amounted to P5,000 when
the amount paid was only
P2, 749.82

RECOMMENDATIO
NS
11.) There should be an
indication that the excess
cash from the P5,000 was
returned to the petty cash
fund.

12.) Not all replenished 12.) Replenishment of funds

vouchers are found in the should
have
a
cash disbursement journal. corresponding record in
the
cash
disbursement
13.) Certain amounts were journal
deemed by the auditors
unusually too big to be 13.) Large amounts should
included in the petty cash be paid through checks.
fund.

FINDINGS
14.) Check no. 407 intended
for payment for telephone
bill of P42,003 was stated
on the cash disbursement
journal with an amount of
P40,000.

RECOMMENDATIO
NS
14.)
The
auditors
recommend that the said
transaction
should
be
corrected.

THANK YOU
AND
GOOD
EVENING!