ABSTRACT
Local Water Districts (LWDs) are government-owned and controlled corporations (GOCCs) that are regularly subjected to the Financial and Compliance Audit of the Commission on Audit (COA), the Supreme Audit Institution of the Philippines. The conduct of audit was equally important as the portrayal of good governance, hence, an effective audit was said to relatively strengthen good governance. In view thereof, this study aimed to determine the significant relationship and significant impact of the financial and compliance audit performance of COA in the good governance manifestation of LWDs. This study used a descriptive correlational design. The respondents of the study were auditors assigned to COA Region IV-A Water Districts and Other CGS Stand-Alone Agencies and top management of LWDs in the CALABARZON Region. A structured survey questionnaire was used to obtain the data needed which was analyzed and interpreted through the mean and four-point Likert Scale, Pearson product-moment correlation, and regression analysis. The results of the study showed a significant relationship between the level of performance of the COA in conducting financial and compliance audits and the manifestation of good governance. It was also observed that the quality of audit and professional ethics in an audit engagement significantly impacts good governance in terms of transparency while only professional ethics significantly impacted accountability. Therefore, to further enhance the audit performance for the benefit of the auditees’, an action plan was proposed. In this way, COA could continuously assist the auditees in fostering good governance in their respective organizations.
Keywords: government, financial and compliance audit, good governance, transparency, and accountability
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