BIBLIOGRAPHY MONTES, APRIL M, APRIL 2011....
BIBLIOGRAPHY
MONTES, APRIL M, APRIL 2011. Evaluation on the Performance of Audit Committee
of Selected Cooperatives in La Trinidad, Benguet. Benguet State University, La Trinidad,
Benguet.
Adviser: Jovita M. Sim, MSc.
ABSTRACT
This study was conducted to determine the timeliness, reliability, and accuracy of audit
findings, and even on the value added by the audit committee. It was also conducted to looked
into the teamwork, confidence, personal habits, language proficiency and attitude of the audit
committee. Furthermore, it also looked into the initiative, dependability, job knowledge, decision
making skills and interpersonal relations as well. This study focused on the frequency of auditing
and the reason for practicing such frequency.
The findings show that most cooperatives practice their frequency in audit because it was
stated in their by-laws and most of the cooperatives practice monthly and quarterly auditing.
Most of the respondents rated their auditor’s timeliness, reliability and accuracy of audit findings
were delivered with consistency. Teamwork, confidence, personal habits, language proficiency
and attitude of the audit committee were also delivered well by meeting all their job
requirements and also by meeting all the expectations from them in this area and the auditors
were consistent in this aspects; same with the auditors initiative, dependability, job knowledge,
decision making and interpersonal relations.
On the overall performance, majority (51.61%) of the cooperative that existed 5 years
and below and 64.71% beyond five years were rated satisfactory. For cooperative that existed
i
below five years, 32.35% of the respondents rated their auditors as needs improvement and
2.94% of the respondents rated their auditors as unsatisfactory. Respondents from cooperatives
that existed beyond five years, 25.81% rated their auditors as needs improvement and
unsatisfactory. Majority of the auditors deliver a consistency in meeting the job requirements and
the expectations from them, however, there were still auditors who were not consistent in
meeting all the job requirements and expectations from them and there were auditors who did not
meet all their job requirements and expectations from them.
To solve problems regarding those committees that does not function, some cooperatives
rely on their external auditors and hire internal auditors to do the function of the committee.
Though, some cooperatives sent their auditors to trainings but this was not enough to motivate
them to do their function. Giving trainings to auditors is not enough to motivate them but
integration or values orientation on the auditors’ personality towards their work could give a
good motivation on the auditors to function well.
INTRODUCTION
Rationale
Today’s business climate has put more emphasis on audit responsibilities. Many
Cooperatives are establishing Audit Committee or Supervisory committee in order to
fulfill highly important duties such checking on the proper utilization of funds. Auditing
of Cooperative’s financial records is one of the committees responsibility and directly
accountable and responsible to the General Assembly. It shall have the power and duty to
continuously monitor the adequacy and effectiveness of the Cooperative’s management
on control system and audit the performance of the cooperative and its various
responsibility centers as stated in the new Cooperative Code RA 9520 of 2008 Art. 43.
The management is responsible for achieving their Mission Statement through the
management’s goals and objectives by the use of effective and efficient resources and
compliance with laws, regulations, and policies.
Internal audit helps the management in distributing the responsibilities by giving
an independent and objective evaluation on its existing internal control on the
cooperatives operations and services. Internal Audit also helps the management develop
and improve its control and processes on its operations and services. However, the
management should always have the control on the cooperatives operations and should
have the ultimate responsibility for their performance (Le Panne, 2006).
The role of Internal Audit Committee is indeed important to Cooperatives and by
measuring performance of Audit Committee ensures high quality standards for audit
strategy, execution and reporting. In addition evaluation of audit performance to the
Evaluation On The Performance Of Audit Committee Of Selected Cooperatives In La Trinidad,
Benguet / Montes, April M, April 2011
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Organization’s mission and objectives and in return ensures that stakeholders audit needs
are fulfilled.
Evaluating the performance of auditors is not by measuring the information
created or produced that were made available and the status and recommendations on risk
and internal control. The information they produce may pertain to the numbers and types
of risk and internal controls faced by the cooperative, the process or other contexts where
risk and controls exist, the impact on the performance of cooperative and the threats
posed by risk, risk indicators, performance indicators, deficiencies, issues, loss, events
and incidents. In summary, the role of internal audit is to drive up the quality and quantity
of reliable information on the status of risk control. Evaluating the performance helps
develop the auditor skills by constructive feedback and positive reinforcement on work
performed, in which this study wants to focus.
Statement of the Problem
Primarily, this study evaluated the performance of internal audit committee of
selected Primary Cooperatives in La Trinidad, Benguet. Thus, it aimed to answer the
following questions.
1. What is the frequency of internal auditing practiced by the cooperative?
2. What is the reason for practicing such frequency in internal auditing?
3. What is the level of effectiveness and reliability of audit findings during the
audit?
4. What is the level of performance of internal audit committee in auditing the
internal control of the cooperative?
5. What are the value added by the audit committee?
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Objective of the Study
The study aimed to:
1. Find out the frequency of internal auditing practiced by the cooperative;
2. Identify the reason for practicing such frequency in internal auditing;
3. Determine the level of effectiveness and reliability of audit findings during the
audit;
4. Determine the level of performance of internal audit committee in auditing the
internal control of the cooperative;
5. Identify the value added by the audit committee.
Importance of the Study
The result of this study would serve as a guide in developing audit skills of audit
committee and aspiring audit committee members in maintaining a reliable internal audit
committee. The results could be used in the improvement of auditing procedures by the
cooperative and for the management in improving their operations and management of
funds. Furthermore, the audit results if properly done would develop trust to the
cooperative, its officers and management staff and limits or reduces or prevents loss or
bankcruptcy if auditing is done regularly. Through this, trust of the community where the
cooperative is located would also be developed. In addition, this study could be used as
reference for further study.
Scope and Delimitations
The study covered selected credit cooperatives in La Trinidad, Benguet for the
year 2010. The investigation was limited to the Co-operatives Audit Committee or
Evaluation On The Performance Of Audit Committee Of Selected Cooperatives In La Trinidad,
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Supervisory Committee policies and practices of cooperatives with at least two years of
operation.
Evaluation On The Performance Of Audit Committee Of Selected Cooperatives In La Trinidad,
Benguet / Montes, April M, April 2011
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REVIEW OF LITERATURE
Audit Defined
Audit is the independent assessment of the performance of management and the
examination and verification of accounting records and ascertain the fair presentation of
the financial statements with end view, of providing management with the needed
recommendations for improvement (Land Bank of the Philippines, 2006).
The origin of audit can be traced to the need to ensure that a person who comes
into possession of money or property belonging to another has properly accounted for it.
The system of checking records of financial transaction in earlier time was confined to
the scrutiny of cash transactions. Moreover, such checking was limited to only public
accountants. The person whose duty it was to check such accounts became known as the
Auditor, the word being derived from the Latin word “Audire” meaning to hear as
originally the auditor merely use to “hear” the accounts to pass transactions are genuine
or correct (Tripura Cooperative, 2004).
Underlying Philosophy on the Conduct of Audit
1. Protection of coop resources from possible losses;
2. A certain fair presentation of the financial statements and;
3. Assesses the overall performance of coop management (Land Bank of the
Philippines, 2006).
Purpose of Audit
1. Assess performance of management, committees and board of directors;
2. Examine and verify records and evidences;
3. Determine adherence to formulate policies and procedures and;
Evaluation On The Performance Of Audit Committee Of Selected Cooperatives In La Trinidad,
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4. To give recommendations as basis for improving the cooperatives operational
System (Land Bank of the Philippines, 2006).
Objectives of Cooperative Auditing
Assist coop management and the effective discharge of their functions by
furnishing them on a regular basis of at least once recommendations (Land Bank of the
Philippines, 2006).
To express an opinion on the financial statements and to see to it that financial
statements are fairly presented (National Confederation of Cooperatives Northern Luzon,
2002).
Types of Audit
1. Financial Audit limits itself to the examination of accounting
records/documents and other evidences for the purpose of assessing the strengths and
weaknesses of the accounting systems and verifying the reliability of the financial
statements (Land Bank of the Philippines, 2006).
2. Management Audit is concerned with the assessment of the performance of the
cooperative board of directors, members of management team and the different
committees created to carry out plans and projects of the cooperative (Land Bank of the
Philippines, 2006).
3. Social Audit it is a procedure where the cooperative assesses its social impact
and ethical performance vis-à-vis its stated mission, vision, goals and code of social
responsibility (Cooperative Development Authority, 2010).
Evaluation On The Performance Of Audit Committee Of Selected Cooperatives In La Trinidad,
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Coop Audit Procedure
A. Familiarize yourself with coop policies and procedures
1. Read the articles of cooperation by laws and any amendments there to;
2. Read minutes of Board of Directors meeting, General Assembly and ownership
meetings;
3. Take note of policies or resolutions promulgated and adopted affecting
cashiering/accounting/lending transactions;
4. Take note of the adequacy of bond on accountable officers;
5. Examine contracts, leases, policies, marketing agreement and others;
6. All matters affecting conduct of audit should be noted. Copies of documents
should be secured and;
7. Secure a copy of the financial statements-Take note of the auditors adjusting
entries and recommendations if implemented the succeeding year (Land Bank of the
Philippines, 2006).
B. Evaluate Coop Internal Control
1. Separation of incompatible functions (receiving/disbursing, recording);
2. Use of double entry (bookkeeping);
3. Prompt recording and balancing of accounts;
4. Use of serially numbered forms (official receipts/launchers) Custodian of
unused pre numbered forms. Take physical inventory of blank checks and all account
forms;
5. Proper filing of used receipts, invoices and cash vouchers with supporting
documents and;
Evaluation On The Performance Of Audit Committee Of Selected Cooperatives In La Trinidad,
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6. Comparison of accounting proofs and controls. Actual Financial statements
figures vs. budget bank reconciliation, audit the physical safeguard of assets (Land Bank
of the Philippines, 2006).
Specific Documents for Examination
1. Source documents;
2. Book of accounts;
3. Aging of accounts/loans receivable;
4. Schedule of fixed assets;
5. Inventory listing;
6. Schedule of accounts/loans payable and;
7. Schedule of members-Accounts receivables, loans, and receivable, Paid-up
Capital, Time and Savings Deposit (Land Bank of the Philippines, 2006).
Conducting Cash Count
1. Conduct cash count in the presence of the custodian, verify cash book balance;
2. Note of cash advances if authorized and by whom? and;
3. Obtain a certificate from the custodian confirming amounts counted (Land
Bank of the Philippines, 2006).
Assessing Performance
The first step towards assessing the internal audit function involves reviewing the
management expectations and achievements with focus in improving internal audit effort
(Douglas, 2009).
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Importance of Evaluating Performance
of the Audit Committee
1. Measures the effectiveness of audit in covering key areas;
2. Measures the reliability of audit findings during the audit;
3. Measures the duration and timeliness of the audit;
4. Measures the accuracy of audit findings;
5. Measures the value of the audit recommendation and:
6. Measures the value added by internal audit committee (Timothy and Kalbers,
1993).
Importance of Effective Audit Committee
Stakeholders want effective control of finances. The higher the cash inflow, the
greater the need for an effective audit committee. An effective audit committee is an
essential tool in overseeing the financial health of a cooperative. Some areas of common
audit committee oversight include:
1. Key areas of business and financial risk;
2. Code of ethics;
3. Internal controls and systems;
4. External audit activity and relationship;
5. Periodic financial reporting;
6. Internal audit activity;
7. Key personal selection for critical financial control positions and;
Evaluation On The Performance Of Audit Committee Of Selected Cooperatives In La Trinidad,
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8. Establish procedures for handling complaints or concerns regarding internal
accounting controls, audit matters or questionable accounting practices (Anonymous,
2007).
Internal Audit Performance; Thought on What
to Measure and How to Measure it.
Mc Cuiag (2009) who participated in the Global Auditing Information Network
(GAIN) project conducted 1997 on measuring performance of auditors stated that a
physician spends a lot of time writing prescriptions. Should we measure the effectiveness
of physicians by number of pills they prescribe or their speed in doing?. When we
measure the number of audits and audit findings that are what we are doing for auditors.
It misses the big picture, I believe we measure the value of medical professionals not by
the activities they perform, e,g prescribing medication, but by the value they add in terms
of improved health, early problem diagnosis, and life expectancy, pain avoided or lessen
etc. We don’t measure the “activities” of dentist and lawyers in terms of cavities filled or
lawsuits filed, we measure dental health achieved, legal problems avoided and justice
served.
Definition of Terms
Timeliness – appropriateness; suitability of audit findings
Reliability – effectiveness; dependability of audit findings
Accuracy – truthfulness of audit findings
Value – helpfulness of the audit committee
Frequency – refers to how often they conduct
Effectiveness – refers to the usefulness of audit findings
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METHODOLOGY
Locale and Time of Study
The research was conducted at the Municipality of La Trinidad, Benguet. This
was conducted from November to December 2010.
Respondents of the Study
The respondents of the study were the Audit Committee as a self-evaluation and
the Management staffs particularly to the Cash Custodian during the Audit, Accountant,
Loan officer, and the Manager of selected Credit Cooperatives in the Municipality.
The respondents were taken from ten cooperatives, where 5 of this were Benguet
Traders MPC, La Trinidad Organic Producers MPC, La Trinidad Police Credit
Cooperative, Life in the Spirit Fellowship MPC, and Seeds and Fruits, MPC, in which 34
respondents were derived from these cooperatives; while 5 of these were the Barangay
Alapang Multi-Purpose Cooperative, Baguio-Tomay Jeepney Operators Association
(credit), Benguet State University MPC and La Trinidad Vegetable MPC, in which 31
respondents were derived. Total respondent of the study was 65.
Data Gathering Procedure
A questionnaire was developed and pre-tested for validation. Questionnaires
were reconstructed based on the result of pre-test. A personal interview with the aid of
questionnaire was done in gathering necessary data and actual observations were also
done.
Evaluation On The Performance Of Audit Committee Of Selected Cooperatives In La Trinidad,
Benguet / Montes, April M, April 2011
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Data Gathered
The data gathered for this study included the frequency and reasons for practicing
such frequency in auditing. It also included the level of performance in conducting audit
on areas of internal control and level of satisfaction on the recommendations given by the
audit committee to the co-operative.
Data Analysis
The data gathered were tabulated and analyzed using frequency analysis,
descriptive analysis and other appropriate statistical tools.
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Benguet / Montes, April M, April 2011
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RESULTS AND DISCUSSION
Profile of Respondents
Table 1 presents the profile of respondents in terms of age, gender, civil status,
educational attainment and the list of selected cooperatives.
Number of cooperatives. There were 52.31% of the respondents on the
cooperatives that existed five years and above and a 47.69% of the respondents on
cooperatives that existed above five years that totaled to 65 respondents.
Age. Most (38.46%) of the respondents belonged to age bracket of 41 to 50 years
old followed by 21 to 30 years of age with 23.08%, 31 to 40 years of age with 18.46%,
and the least (4.62%) belonged to the age bracket of above 60 years of age. This indicates
that majority of the members of audit committee and management staffs of selected
cooperatives in La Trinidad, Benguet were aged from 41 to 50 years of age. The mean
age of the respondents was 40.54 years.
Gender. The table shows that majority (56.92%) of the members of audit
committee and management staffs were female. This shows that women play an
important role in the supervision and management of the cooperative.
Civil status. Although majority (58.46%) of respondents were married and a
significant number (41.54%) were single, it implies that unmarried members of the audit
committee and managements staff could play an important role in having much time in
doing their function in the cooperative.
Educational attainment. The table shows that majority (73.85%) of the
respondents graduated from college and 23.08% of the respondents had graduated from
high school while a minimum of 1.54% were taking up their masteral degree. This
Evaluation On The Performance Of Audit Committee Of Selected Cooperatives In La Trinidad,
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Table 1. Profile of respondents
PARTICULAR
FREQUENCY
PERCENTAGE
Above 6 years
BALMUCO
6
9.23
BATJODA
6
9.23
BODA MPC
4
6.15
BSU MPC
7
10.77
LTVTP MPC
8
12.31
SUB-TOTAL
31
47.69
2 to 5 years
TRADERS
8
12.31
LA TOP MPC
7
10.77
LTPC
6
9.23
LSF MPC
5
7.69
SF MPC
8
12.31
SUB-TOTAL
34
52.31
TOTAL
65
100.00
situation implies that educational attainment plays a great role on the members of audit
committee and management staff in performing their function in an effective way and in
helping the success of a cooperative.
Evaluation On The Performance Of Audit Committee Of Selected Cooperatives In La Trinidad,
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Table 1. Continued.
PARTICULAR
FREQ
UENCY
PERCE NTAGE
Age
Above 60
3
4.62
51-60
10
15.38
41-50
25
38.46
31-40
12
18.46
21-30
15
23.08
TOTAL
65
100.00
Gender
Female
37
56.92
Male
28
43.08
TOTAL
65
100.00
Civil status
Single
27
41.54
Married
38
58.46
TOTAL
65
100.00
Educational attainment
High school graduate
15
23.08
College graduate
48
73.85
Bachelor of Law
1
1.54
MAP in progress
1
1.54
TOTAL
65
100.00
Evaluation On The Performance Of Audit Committee Of Selected Cooperatives In La Trinidad,
Benguet / Montes, April M, April 2011
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Frequency in Auditing as Practiced by Cooperatives
Table 2 presents how many times internal auditing is conducted. The findings
shows that cooperatives that existed below five years were conducting their internal audit
monthly while cooperatives that existed above five years conducts their internal audit
monthly and quarterly, while having the least onl;y one (14.29%) only one of the
cooperative respondents conducts their internal audit weekly. Though there is a least
number of cooperative conducting their internal audit weekly this practice could give
consistent supervision on the cooperative. Major reason for not conducting a weekly
internal auditing is availability of time/time constraints of auditors.
Reason for Practicing such Frequency
Table 3 shows the reason of cooperatives in choosing the above frequencies.
Cooperatives that existed below five years were practicing their frequency in auditing
because it was stated in their by-laws (60%) while a 20% of the cooperatives practice
such frequency because it was decided by the Board of Directors and this were preferred
by the auditors, same as those cooperatives that existed above five years having the same
reason that it was stated in their by-laws (80%) and 20% of the cooperatives were
practicing their frequency in auditing because it was preferred by the auditors.
Table 2. Frequency in auditing practiced by cooperatives
BELOW 5 YEARS
ABOVE 5 YEARS
FREQUENCY
FREQUENCY PERCENTAGE
FREQUENCY PERCENTAGE
Weekly
-
-
1
14.29
Monthly
3
60
3
42.86
Quarterly
2
40
3
42.86
TOTAL
5
100
7
100.00
Evaluation On The Performance Of Audit Committee Of Selected Cooperatives In La Trinidad,
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Table 3. Reason for practicing such frequency
BELOW 5 YEARS
ABOVE 5 YEARS
FREQUENCY
FREQUENCY PERCENTAGE FREQUENCY PERCENTAGE
It is stated in the
3
60
4
80.00
by laws
BOD decisions
1
20
-
-
Preferred by the
1
20
1
20.00
auditors
TOTAL
5
100
5
100.00
Ratings of Audit Committee and Management
Staff on Timeliness of Audit
Table 4 shows the ratings of audit committee and management staff on timeliness
of audit. The audit committee and management staff of cooperatives that existed below
five years rated their timeliness of audit satisfactory and 35.29% of the respondents rated
it as needs improvement. This implies that the timeliness of audit consistently meets the
job requirements and expectations on the auditors in the aspect of timeliness of audit.
Though least of the respondents subjected their timeliness of audit for a need of
improvement this must not be taken aside, this imply that the auditors meets the job
requirements but they do not consistently meet regarding the timeliness of audit, this may
require a degree of supervision and revision on their conduct of audit to meet a consistent
timeliness of audit.
The respondents of cooperatives that existed above five years rated their
timeliness of audit satisfactorily and a 25.81% of the respondents rated it as a need for
improvement and 9.68% of the respondents rated it as unsatisfactory. This implies
Evaluation On The Performance Of Audit Committee Of Selected Cooperatives In La Trinidad,
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Table 4. Ratings of audit committee and management staff on timeliness of audit
BELOW 5 YEARS
ABOVE 5 YEARS
FREQUENCY
FREQUENCY PERCENTAGE FREQUENCY PERCENTAGE
Satisfactory
22
64.71
20
64.52
Needs
12
35.29
8
25.81
Improvement
Unsatisfactory
-
-
3
9.68
TOTAL
34
100.00
31
100.00
on timeliness on audit auditors consistently perform their job well with a few rate of
respondents rated that the timeliness on audit needs a revision and some degree of
supervision to consistently perform their job well and some respondents rated it
unsatisfactory which implies that a need of frequent revision and a high degree of
supervision with direction to motivate the auditors to meet their job requirement
regarding their timeliness of audit.
Ratings of Audit Committee and Management
Staff on Reliability of Audit Findings
Table 5 shows the rating of the audit committee and management staff on
reliability of audit findings. The table shows that respondents of cooperatives that existed
five years and below rated the reliability of audit findings satisfactory and 38.24% of the
respondents rated it as needs improvement. This implies that the audit findings of
auditors are reliable, this also implies that the respondents trust the auditors audit findings
that this could give improvement on the cooperatives financial and non-financial aspects
that was audited. Though, majority of the respondent rated the reliability of audit
Evaluation On The Performance Of Audit Committee Of Selected Cooperatives In La Trinidad,
Benguet / Montes, April M, April 2011
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Table 5. Ratings of audit committee and management staff on reliability of audit findings
BELOW 5 YEARS
ABOVE 5 YEARS
FREQUENCY
FREQUENCY PERCENTAGE FREQUENCY PERCENTAGE
Satisfactory
21
61.76
20
64.52
Needs
13
38.24
8
25.81
Improvement
Unsatisfactory
-
-
3
9.68
TOTAL
34
100.00
31
100.00
findings as satisfactory. It should be noted that some of the respondents rated it as needs
improvement which implies that the respondents want further improvement on the
consistency on the reliability of audit findings.
The respondents of cooperatives that existed above five years rated the reliability
of audit findings as satisfactory (64.52%), while 25.81% rated the audit committee with a
rating that needs improvement and 9.68 % of the members rated it as unsatisfactory. This
implies that the audit findings were consistently reliable. The least percentage of
respondents rated the reliability of audit findings unsatisfactorily which implies that some
of those cooperatives audit findings were absolutely unreliable which needs frequent
revision and a high degree of supervision and direction for the committee to have
reliable audit findings.
Ratings of Audit Committee and Management
Staff on Accuracy of Audit Findings
Table 6 shows the ratings of audit committee and management staff of
cooperatives that existed for five years and below and above five years on the accuracy of
Evaluation On The Performance Of Audit Committee Of Selected Cooperatives In La Trinidad,
Benguet / Montes, April M, April 2011
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audit findings. The table shows that the those respondents of cooperatives that existed
below five years rated the accuracy of audit findings satisfactory which implies that most
of the audit findings of the audit committee of those cooperatives are accurate and a
35.29% of the respondents rated the accuracy of audit findings as needs improvement
which implies that most of the audit findings of the audit committee of those cooperatives
are accurate but it is not consistently accurate and requires revision and supervision to
consistently produce an accurate audit findings.
Sixteen (51.61%) of respondents of those cooperatives that existed above five
years rated the accuracy of audit findings satisfactory, which implies that the audit
committee were producing an accurate audit findings, while 38.71% of the respondents
rated their audit committee’s accuracy of audit findings as needs improvement, this
implies that their audit committee were not consistently producing an accurate audit
findings. Three or 9.68% of the respondents rated their audit committee’s accuracy of
audit findings unsatisfactory, which implies that their audit committee does produces an
inaccurate audit findings and needs a frequent revision and high degree of supervision
and direction to motivate them to give an accurate audit findings.
Table 6. Ratings of audit committee and management staff on accuracy of audit findings
FREQUENCY
BELOW 5 YEARS
ABOVE 5 YEARS
FREQUENCY PERCENTAGE FREQUENCY PERCENTAGE
Satisfactory
22
64.71
16
51.61
Needs
12
35.29
12
38.71
Improvement
Unsatisfactory
-
-
3
9.68
TOTAL
34
100.00
31
100.00
Evaluation On The Performance Of Audit Committee Of Selected Cooperatives In La Trinidad,
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Ratings of Audit Committee and Management
Staff on to Team Work
Table 7 shows the rate of the audit committee and managements staff of
cooperatives that existed for five years and below and above five years on the team work
of audit committee. The table shows that 82.35% of the respondents of cooperatives that
existed below five years rated their audit committee’s team work satisfactory, same with
the 58.06% of respondents of the cooperatives that existed above five years, which
implies that the auditors share responsibilities, confers with others, honor commitments,
helps others to do their jobs, and seeks help when needed, while 17.65% of the
respondents of cooperatives that existed below five years rated their audit committee’s
team work as needs improvement, same as with 32.26% of the respondents of those
cooperatives that existed above five years, which implies that their audit committees team
work needs more improvement in sharing responsibilities, conferring others, honoring
commitments, helping others and seeking help when needed. Three or 9.68% of the
respondents of those cooperatives that existed above five years rated their audit
committee unsatisfactory, which implies that team work of the audit committee is not
seen to their audit committee.
Table 7. Ratings of audit committee and management staff on teamwork
FREQUENCY
BELOW 5 YEARS
ABOVE 5 YEARS
FREQUENCY PERCENTAGE FREQUENCY PERCENTAGE
Satisfactory
28
82.35
18
58.06
Needs
6
17.65
10
32.26
Improvement
Unsatisfactory
-
-
3
9.68
TOTAL
34
100.00
31
100.00
Evaluation On The Performance Of Audit Committee Of Selected Cooperatives In La Trinidad,
Benguet / Montes, April M, April 2011
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Ratings of Audit Committee and Management
Staff on Confidence
Table 8 shows the rating of audit committee and management staff of
cooperatives that existed for five years and below and above five years on the confidence
of audit committee. The 73.53% of the respondents of cooperatives that existed below
five years rated their audit committee’s confidence satisfactory, same with the 74.19% of
respondents of the cooperatives that existed above five years, which implies that the
members of the audit committee learns from experience, ask questions and corrects
mistakes and absorbs criticism and direction without feeling defeated or insulted, while
26.47% of the respondents of cooperatives that existed below five years rated their audit
committee’s confidence as needs improvement, same with the 16.13% of respondents of
the cooperatives that existed above five years, which implies that their audit committee
shows confidence but this was not consistently seen thus needs more improvement. A
9.68% of respondents of the cooperatives that existed above five years rated their auditors
as unsatisfactory, which implies that their audit committee does not show confidence.
Table 8. Ratings of audit committee and management staff on confidence
FREQUENCY
BELOW 5 YEARS
ABOVE 5 YEARS
FREQUENCY PERCENTAGE FREQUENCY PERCENTAGE
Satisfactory
25
73.53
23
74.19
Needs
9
26.47
5
16.13
Improvement
Unsatisfactory
-
-
3
9.68
TOTAL
34
100.00
31
100.00
Evaluation On The Performance Of Audit Committee Of Selected Cooperatives In La Trinidad,
Benguet / Montes, April M, April 2011
23
Ratings of Audit Committee and Management
Staff on Personal Habits
Table 9 shows the of audit committee and management staff of cooperatives that
existed for five years and below and above five years on personal habits of the members
of audit committee. Twenty eight or 82.35% of the respondents of cooperatives that
existed below five years rated the members of their audit committee’s personal habits
satisfactory, same with the 70.97% of the respondents of the cooperatives that existed
above five years, which implies that the auditors comes in proper attire and grooming,
tone of voice and vocabulary according to culture in the workplace, while 17.65% of the
respondents of cooperatives that existed below five years rated the members of their audit
committee’s personal habits unsatisfactory, same with the 19.35% of the respondents of
the cooperatives that existed above five years, which implies that the auditors does
not consistently come in a proper attire and grooming, tone of voice and vocabulary
according to culture in the workplace were not consistently shown by the auditors. A
9.68% of the respondents of the cooperatives that existed above five years rated the
members of their audit committee unsatisfactory, which implies that their auditors did not
qualify the category of personal habits.
Table 9. Ratings of audit committee and management staff on personal habits
BELOW 5 YEARS
ABOVE 5 YEARS
FREQUENCY
FREQUENCY PERCENTAGE
FREQUENCY PERCENTAGE
Satisfactory
28
82.35
22
70.97
Needs
6
17.65
6
19.35
Improvement
Unsatisfactory
-
-
3
9.68
TOTAL
34
100.00
31
100.00
Evaluation On The Performance Of Audit Committee Of Selected Cooperatives In La Trinidad,
Benguet / Montes, April M, April 2011
24
Ratings of Audit Committee and Management
Staff on Language Proficiency
Table 10 shows the rating of audit committee and management staff of
cooperatives that existed for five years and below and above five years on language
proficiency of the members of the audit committee. Nineteen or 55.88% of the
respondents of cooperatives that existed below five years rated the members of their audit
committee’s language proficiency satisfactorily, same with the 83.87% of the respondents
of the cooperatives that existed above five years, which implies that the auditors spears,
reads and writes standard English in a business like way, while a 44.12% of the
respondents of cooperatives that existed below five years rated the members of their
audit committee’s language proficiency as needs improvement, same with the 83.87% of
the respondents of the cooperatives that existed above five years, which implies that their
auditors did not consistently show a proficiency in language. Three or 9.68% of the
respondents of the cooperatives that existed above five years rated the members of the
audit committee’s language proficiency unsatisfactory, which implies that the auditor s
does not show proficiency in language.
Table 10. Ratings of audit committee and management staff on language proficiency
BELOW 5 YEARS
ABOVE 5 YEARS
FREQUENCY
FREQUENCY PERCENTAGE FREQUENCY PERCENTAGE
Satisfactory
19
55.88
26
83.87
Needs
15
44.12
2
6.45
Improvement
Unsatisfactory
-
-
3
9.68
TOTAL
34
100.00
31
100.00
Evaluation On The Performance Of Audit Committee Of Selected Cooperatives In La Trinidad,
Benguet / Montes, April M, April 2011
25
Ratings of Audit Committee and Management
Staff on Attitude of Auditors
Table 11 shows the rating of audit committee and management staff of
cooperatives that existed for five years and below and above five years on the members
of audit committee’s attitude. Thirty three or 97.06% of the respondents of cooperatives
that existed below five years rated the members of their audit committee’s attitude
satisfactory, same with 83.87% of the respondents of the cooperatives that existed above
five years, which implies that the auditors keeps a positive and optimistic outlook despite
changes and is friendly with others, while 2.94% of the respondents of cooperatives that
existed below five years rated the members of their audit committee’s attitude as needs
improvement, same with the 6.45% of the respondents of the cooperatives that existed
above five years, which implies that the auditors did not consistently showed a positive
and optimistic outlook despite changes and being friendly with others. A 9.68% of the
respondents of cooperatives that existed below five years rated the members of their audit
committee’s attitude as unsatisfactory, which implies that the auditors did not show a
positive and optimistic outlook despite the changes.
Ratings of Audit Committee and Management
Staff on Initiative and Dependability
of Auditors
Table 12 shows the rating of audit committee and management staff of
cooperatives that existed for five years and below and above five years on the members
of audit committee’s on initiative and dependability of auditors.
Work independence. Twenty two or 64.71% of the respondents of cooperatives
that existed below five years rated the members of their audit committee’s independence
Evaluation On The Performance Of Audit Committee Of Selected Cooperatives In La Trinidad,
Benguet / Montes, April M, April 2011
26
Table 11. Ratings of audit committee and management staff on attitude of auditors
FREQUENCY
BELOW 5 YEARS
ABOVE 5 YEARS
FREQUENCY PERCENTAGE
FREQUENCY PERCENTAGE
Satisfactory
33
97.06
26
83.87
Needs
1
2.94
2
6.45
Improvement
Unsatisfactory
-
-
3
9.68
TOTAL
34
100.00
31
100.00
Table 12. Ratings of audit committee and management staff on initiative and
dependability of auditors
FREQUENCY
BELOW 5 YEARS
ABOVE 5 YEARS
FREQUENCY PERCENTAGE
FREQUENCY PERCENTAGE
Work independently, is self-directed
Satisfactory
22
64.71
19
61.29
Needs
12
35.29
9
29.03
Improvement
Unsatisfactory
-
-
3
9.68
TOTAL
34
100.00
31
100.00
Demonstrate proactive, positive and enthusiastic attitude and behavior
Satisfactory
21
61.76
21
67.64
Needs
13
38.24
7
22.58
improvement
Unsatisfactory
-
-
3
9.68
TOTAL
34
100.00
100.00
Consistently delivers a quality of work product that is detailed, accurate, reflective of the work
performed, and requires minimal work
Satisfactory
24
70.59
14
45.16
Needs
10
29.41
14
45.16
improvement
Unsatisfactory
3
9.68
TOTAL
34
100.00
31
100.00
Evaluation On The Performance Of Audit Committee Of Selected Cooperatives In La Trinidad,
Benguet / Montes, April M, April 2011
27
on their work satisfactory, same with the 61.29% of the respondents of the cooperatives
that existed above five years, which implies that their auditors are self directed or they
worked independently, while a 35.29% of the respondents of cooperatives that existed
below five years rated the members of their audit committee’s independence on their
work as needs improvement, same with 29.03% of the respondents of the cooperatives
that existed above five years, which implies that their auditors did not consistently
showed independence in their work. A 9.68% of the respondents of the cooperatives that
existed above five years rated their auditors unsatisfactory, this implies that their auditors
did not perform their work independently.
Demonstrates proactive, positive and enthusiastic attitude and behavior. The
61.76% of the respondents of cooperatives that existed below five years rated the
members of their audit committee’s proactive, positive and enthusiastic attitude and
behavior satisfactory, same with the 67.74% of the respondents of the cooperatives that
existed above five years, which implies that their auditors demonstrates a proactive,
positive and enthusiastic attitude and behavior, while a 38.24% of the respondents of
cooperatives that existed below five years rated the members of their audit committee’s
proactive, positive and enthusiastic attitude and behavior as needs improvement, same
with the 22.58% of the respondents of the cooperatives that existed above five years, this
implies that the auditors did not consistently demonstrate a proactive, positive and
enthusiastic attitude and behavior. Three or 9.68% of the respondents of the cooperatives
that existed above five years rated their auditors unsatisfactory, this implies that their
auditors did not demonstrate a proactive, positive and enthusiastic attitude and behavior.
Evaluation On The Performance Of Audit Committee Of Selected Cooperatives In La Trinidad,
Benguet / Montes, April M, April 2011
28
Consistence in delivery of a quality of work product. Twenty four or 70.59% of
the respondents of cooperatives that existed below five years rated the members of their
audit committee’s consistency in delivering a quality of work product that was detailed,
accurate, they reflect on the work that they performed, and requires minimal work
satisfactory, same with the 45.16% of the respondents of the cooperatives that existed
above five years, which implies that the auditors delivered a quality of work, while
29.41% of the respondents of cooperatives that existed below five years rated the
members of their audit committee’s consistency in delivering a quality of work product
that was detailed, accurate, they reflect on the work that they performed, and requires a
minimal work as needs improvement, same with the 45.16% of the respondents of the
cooperatives that existed above five years, which implies that the auditors did not
consistently delivered a quality of work. Three or 9.68% of the respondents of the
cooperatives that existed above five years rated their auditors unsatisfactory which
implies that their auditors did not deliver a quality of work.
This findings shows that the initiative and dependability of some audit committee
of those selected cooperatives were working independently, demonstrates a proactive,
positive, enthusiastic behavior and the auditors consistently delivered a quality of work
product. While others were not consistent in working independently, demonstrating a
proactive, positive, enthusiastic behavior and the auditors does not consistently deliver a
quality of work product. While the audit committee of some cooperatives were rated
unsatisfactory for not performing their function
Evaluation On The Performance Of Audit Committee Of Selected Cooperatives In La Trinidad,
Benguet / Montes, April M, April 2011
29
Ratings of Audit Committee and Management
Staff on Job Knowledge and Analytical/
Decision Making Skills
Table 13 shows the ratings of audit committee and management staff on job
knowledge and analytical/decision making skills of the audit committee.
Possesses the knowledge necessary to complete job tasks. Nineteen or 55.88%
of the respondents of cooperatives that existed below five years rated the members of the
audit committee if they possess the knowledge necessary to complete their job tasks
satisfactory, same with the 45.16% of the respondents of the cooperatives that existed
above five years, which indicates that their auditors have all the necessary knowledge to
complete their job task, while 44.12% of the respondents of cooperatives that existed
below five years rated the members of the audit committee if they possess the knowledge
necessary to complete their job tasks as needs improvement, same with the 41.94% of the
respondents of the cooperatives that existed above five years, which implies that their
auditors does not possess all the necessary knowledge to complete their job tasks which
requires more motivation and supervision to give the auditors all the necessary
knowledge to complete their job tasks. Three or 9.68% of the respondents of the
cooperatives that existed above five years rated their auditors unsatisfactory, which
implies that their auditors does not possess any knowledge to complete their job tasks.
Understands and adequately accomplish job duties and responsibilities. The table
shows the rating of respondents on the auditors if they understand and adequately
accomplish their job duties and responsibilities in which nineteen or 55.88% of the
respondents of cooperatives that existed below five years rated the members of the audit
committee with satisfactory and 51.61% of the respondents of the cooperatives that
Evaluation On The Performance Of Audit Committee Of Selected Cooperatives In La Trinidad,
Benguet / Montes, April M, April 2011
30
Table 13. Ratings of audit committee and management staff on job knowledge and
analytical/decision making skills
BELOW 5 YEARS
ABOVE 5 YEARS
FREQUENCY
FREQUENCY PERCENTAGE FREQUENCY PERCENTAGE
Possesses the knowledge necessary to complete job/task
Satisfactory
19
55.88
14
45.16
Needs
15
44.12
13
41.94
Improvement
Unsatisfactory
-
-
4
12.90
TOTAL
34
100.00
31
100.00
Understands and adequately accomplish job, duties and responsibilities
Satisfactory
19
55.88
16
51.61
Needs
15
44.12
12
38.71
improvement
Unsatisfactory
-
-
3
9.68
TOTAL
34
100.00
31
100.00
Analyzes fieldwork results to arrive at logical conclusions
Satisfactory
22
64.71
12
38.71
Needs
12
35.29
16
51.61
improvement
Unsatisfactory
-
-
3
9.68
TOTAL
34
100.00
31
100.00
Recognizes problems, identifies cause and makes potential recommendations
Satisfactory
25
73.53
18
58.06
Needs
9
26.47
10
32.26
improvement
Evaluation On The Performance Of Audit Committee Of Selected Cooperatives In La Trinidad,
Benguet / Montes, April M, April 2011
31
Table 13 Continued.
BELOW 5 YEARS
ABOVE 5 YEARS
FREQUENCY
FREQUENCY PERCENTAGE FREQUENCY PERCENTAGE
Satisfactory
25
73.53
18
58.06
Needs
9
26.47
10
32.26
improvement
Unsatisfactory
-
-
3
9.68
TOTAL
34
100.00
31
100.00
Explains the rationale behind decisions and recommendations as appropriate
Satisfactory
22
64.71
21
67.74
Needs
12
35.29
7
22.58
improvement
Unsatisfactory
-
-
3
9.68
TOTAL
34
100.00
31
100.00
existed above five years, which implies that the their audit committees fully understands
and adequately accomplish their job duties and responsibilities, while 44.12% of the
respondents of cooperatives that existed below five years and 38.71% of the respondents
of the cooperatives that existed above five years rated their auditors as needs
improvement, which implies that their auditors does not understand and adequately
accomplish some aspects on the job duties and responsibilities of the auditors. A 9.68%
of the respondents of the cooperatives that existed above five years rated their auditors
unsatisfactory, this implies that their auditors does not completely understand and
adequately accomplish their job duties and responsibilities.
Evaluation On The Performance Of Audit Committee Of Selected Cooperatives In La Trinidad,
Benguet / Montes, April M, April 2011
32
Analyzes fieldwork results to arrive at logical conclusions. The table shows the
rating of respondents on the auditors if they analyze their fieldwork results to arrive at a
logical conclusions in which 64.71% of the respondents of cooperatives that existed
below five years and 38.71% of the respondents of the cooperatives that existed above
five years rated their auditors satisfactory, which implies that their auditors were
analyzing their fieldwork results to arrive at a logical conclusion, while 35.29% of the
respondents of cooperatives that existed below five years and 51.61% of the respondents
of the cooperatives that existed above five years rated their auditors on this aspect as
needs improvement, taking a note on those cooperatives that existed below five years
comparing it with their respondents that rated their auditors satisfactory, which implies
that their auditors does not consistently arrives at a logical conclusion this needs an
improvement on analyzing capacity on the fieldwork results and to arrive into a more
logical conclusion. Three or 9.68% of the respondents of the cooperatives that existed
above five years rated their auditors unsatisfactorily, this implies that their auditors does
not arrive into logical conclusions in which a high degree of improvement and
supervision on the auditors is needed to arrive on a logical conclusion.
Recognizes problems, identifies cause and makes potential recommendations.
The table shows the ratings of the respondents on the auditors’ capacity to recognize
problems, identify the causes of it and their ability to make potential recommendations.
Twenty five or 73.53% of the respondents of cooperatives that existed below five years
and 58.06% of the respondents of the cooperatives that existed above five years rated
their auditors satisfactory, which implies that their auditors has the capacity to recognize
problems, identify the causes of those problems and they have the ability to make
Evaluation On The Performance Of Audit Committee Of Selected Cooperatives In La Trinidad,
Benguet / Montes, April M, April 2011
33
recommendations to solve the problem. While 26.47% of the respondents of cooperatives
that existed below five years and a 32.26% of the respondents of the cooperatives that
existed above five years rated their auditors on this aspect as needs improvement, which
implies that the consistency of their ability to recognize problems, identifying its causes
and their ability to make recommendations is not consistent. Three or 9.68% of the
respondents of the cooperatives that existed above five years rated their auditors
unsatisfactory, this implies that their auditors does not have the ability to recognize
problems and identify its causes and does not give recommendations.
Explains the rationale behind decisions and recommendations as appropriate. The
table shows if the auditors explain the rationale behind decisions and recommendations
they produce. Twenty two or 64.71% of the respondents of cooperatives that existed
below five years and a 67.74% of the respondents of the cooperatives that existed above
five years rated their auditors satisfactory, which implies that their auditors were
explaining their justifications on why they come up with those decisions and
recommendations they were producing. While the 35.29% of the respondents of
cooperatives that existed below five years and 22.58% of the respondents of the
cooperatives that existed above five years rated their auditors on this aspect as needs
improvement, which implies that the auditors are not consistently explaining their reasons
in coming up with their decisions and recommendations, and 9.68% of the respondents of
the cooperatives that existed above five years rated their auditors unsatisfactory, this
implies that their auditors does not explain their reasons or justification on the decisions
and recommendations they were producing.
Evaluation On The Performance Of Audit Committee Of Selected Cooperatives In La Trinidad,
Benguet / Montes, April M, April 2011
34
Ratings of Audit Committee and Management
Staff on Communication Skills
and Interpersonal Relations
Table 14 shows the ratings of the respondents on the communication skills and
interpersonal relations of the members of the audit committee.
Oral communications are clear and spoken with ease. The table shows the ratings
of the respondents if the oral communications are clear and spoken with ease. Twenty
five or 73.53% of the respondents of cooperatives that existed below five years and
77.42% of the respondents of the cooperatives that existed above five years rated their
auditors satisfactory which implies that their auditors were clearly speaking and speaking
with ease. While the 26.47% of the respondents of cooperatives that existed below five
years and a 12.90% of the respondents of the cooperatives that existed above five years
rated their auditors on this aspect as needs improvement, which implies that the auditors
are not consistently speaking clearly and speaking with ease. Three or 9.68% of the
respondents of the cooperatives that existed above five years rated their auditors
unsatisfactory, this implies that their auditors were not clearly speaking and speaking
with ease.
Written communications are logical and well organized. The table shows the
rating of respondents on the way the communications are written and if these are logical
and well organized. Twenty six or 76.47% of the respondents of cooperatives that existed
below five years and 67.74% of the respondents of the cooperatives that existed above
five years rated their auditors satisfactory which implies that their auditors were writing
their communications logically and were well organized. While 23.53% of the
respondents of cooperatives that existed below five years and 9.35% of the
Evaluation On The Performance Of Audit Committee Of Selected Cooperatives In La Trinidad,
Benguet / Montes, April M, April 2011
35
Table 14. Ratings of audit committee and management staff on communication skills and
interpersonal relations
BELOW 5 YEARS
ABOVE 5 YEARS
FREQUENCY
FREQUENCY PERCENTAGE FREQUENCY PERCENTAGE
Oral communications are clear and spoken with ease
Satisfactory
25
73.53
24
77.42
Needs
29
26.47
4
12.90
Improvement
Unsatisfactory
-
-
3
9.68
TOTAL
34
100.00
31
100.00
Written communications are logical and well organized
Satisfactory
26
76.47
21
67.74
Needs
8
23.53
6
19.35
improvement
Unsatisfactory
-
-
4
12.90
TOTAL
34
100.00
31
100.00
Communications with confidence while treating others with respect, courtesy and
fairness
Satisfactory
26
76.47
23
74.19
Needs
8
23.53
5
16.13
improvement
Unsatisfactory
34
9.68
TOTAL
34
100.00
31
100.00
Listen effectively, respond clearly and directly, and seeks to clarify and confirm the
accuracy of their understanding or unfamiliar of vague terms
Satisfactory
26
76.47
18
58.06
Evaluation On The Performance Of Audit Committee Of Selected Cooperatives In La Trinidad,
Benguet / Montes, April M, April 2011
36
Table 14. Continued.
BELOW 5 YEARS
ABOVE 5 YEARS
FREQUENCY
FREQUENCY PERCENTAGE FREQUENCY PERCENTAGE
Needs
8
23.53
10
32.26
improvement
Unsatisfactory
-
-
3
9.68
TOTAL
34
100.00
31
100.00
Contributes to the Cooperative and develops positive working relationship
Satisfactory
29
85.29
20
64.52
Needs
5
14.71
8
25.81
improvement
Unsatisfactory
-
-
3
9.68
TOTAL
34
100.00
31
100.00
respondents of the cooperatives that existed above five years rated their auditors on this
aspect as needs improvement, this implies that their auditors were not consistent in
writing their communications logically and this were not well organized. Three or 9.68%
of the respondents of the cooperatives that existed above five years rated their auditors
unsatisfactory, this implies that their auditors did not write communications logically
and these are not well organized.
Communicates with confidence while treating others with respect, courtesy, and
fairness. The table shows the rating of respondents on the way the auditors were
communicating. Twenty six or 76.47% of the respondents of cooperatives that existed
below five years and 58.06% of the respondents of the cooperatives that existed above
five years rated their auditors satisfactory, this implies that their auditors were
Evaluation On The Performance Of Audit Committee Of Selected Cooperatives In La Trinidad,
Benguet / Montes, April M, April 2011
37
communicating with confidence while treating others with respect, courtesy, and fairness.
While 23.53% of the respondents of cooperatives that existed below five years and
16.13% of the respondents of the cooperatives that existed above five years rated their
auditors on this aspect as needs improvement, this implies that the auditors were not
consistent in communicating with confidence while treating others with respect, courtesy,
and fairness. Three or 9.68% of the respondents of the cooperatives that existed above
five years rated their auditors unsatisfactory. This implies that their auditors did not
communicate with confidence while treating others with respect, courtesy, and fairness.
Listens effectively, respond clearly and directly, and seeks to clarify and confirm
the accuracy of their understanding or unfamiliar of vague terms. The table shows that
the rating of respondents on the auditors effective listening, direct and clear respond and
to the auditors explanation on the accuracy of their understanding and even on the
clarification on vague terms. Twenty six or 76.47% of the respondents of cooperatives
that existed below five years and a 58.06% of the respondents of the cooperatives that
existed above five years rated their auditors satisfactory, this implies that the auditors
listens effectively, respond directly and clearly and seeks to clarify the accuracy of their
understanding on unfamiliar or vague terms. While 23.53% of the respondents of
cooperatives that existed below five years and 32.26% of the respondents of the
cooperatives that existed above five years rated their auditors on this aspect as needs
improvement, this implies that the auditors were not consistent in listening effectively,
responding clearly and directly, and in seeking to clarify and confirm the accuracy of
their understanding on unfamiliar or vague. Three or 9.68% of the respondents of the
cooperatives that existed above five years rated their auditors unsatisfactory. This implies
Evaluation On The Performance Of Audit Committee Of Selected Cooperatives In La Trinidad,
Benguet / Montes, April M, April 2011
38
that the auditors did not listen effectively, respond clearly and directly and did not seek to
clarify and confirm the accuracy of their understanding on unfamiliar or vague terms.
Contributes to the Co-operative and develops positive working relationships.
This shows the rating of the respondents on the capacity of the auditors to contribute to
the cooperative and on their development of a positive relation on their work. Twenty six
or 76.47% of the respondents of cooperatives that existed below five years and 58.06%
of the respondents of the cooperatives that existed above five years rated their auditors
satisfactory, this implies that the auditors were contributing to the cooperative and
develops positive working relationship. While the 85.29% of the respondents of
cooperatives that existed below five years and 64.52% of the respondents of the
cooperatives that existed above five years rated their auditors on this aspect as needs
improvement, this implies that their auditors did not consistently contribute to the
cooperative and developed a positive working relationship, and a 9.68% of the
respondents of the cooperatives that existed above five years rated their auditors
unsatisfactory. This implies that their auditors did not contribute anything to the
cooperative and they did not develop a positive working relationship.
Ratings of Audit Committee and Management
Staff on the Overall Level of Performance
of Audit Committee
Table 15 shows the rating of the respondents on the overall level of performance
of audit committee. Twenty two or 64.71% of the respondents of cooperatives that
existed below five years and a 51.61% of the respondents of the cooperatives that existed
above five years rated their auditors satisfactorily. This implies that the auditors
Evaluation On The Performance Of Audit Committee Of Selected Cooperatives In La Trinidad,
Benguet / Montes, April M, April 2011
39
Table 15. Ratings of audit committee and management staff on the level of performance
of audit committee
BELOW 5 YEARS
ABOVE 5 YEARS
PARTICULAR
FREQUENCY PERCENTAGE FREQUENCY PERCENTAGE
Satisfactory
22
64.71
16
51.61
Needs
11
32.35
8
25.81
Improvement
Unsatisfactory
1
2.94
7
22.58
TOTAL
34
100.00
31
100.00
consistently meet all job requirements and the expectations of the auditors and
expectations from them. While 32.35% of the respondents of cooperatives that existed
below five years and 25.81% of the respondents of the cooperatives that existed above
five years rated their auditors on this aspect as needs improvement. This implies that their
auditors did not consistently meet all the job requirements and the expectations of the
auditors and expectations from them. A 22.58% of the respondents of the cooperatives
that existed above five years rated their auditors unsatisfactory; this implies that their
auditors did not meet all job requirements and all expectations of the auditors and
expectations from them.
Value Added by the Audit Committee
Table 16 shows the value added by the audit committee. This shows the
helpfulness of the audit committee to the cooperative. Sixteen or 47.06% of the
respondents of those cooperatives that existed five years and below observed that the
audit committee is helpful in correcting errors, this implies that the most of the
Evaluation On The Performance Of Audit Committee Of Selected Cooperatives In La Trinidad,
Benguet / Montes, April M, April 2011
40
expectation of the respondents is to correct errors; while the majority (19.35%) of the
respondents from those cooperative that existed beyond five years observed that their
audit committee were helpful in making policy and evaluating its implementation for
building up a better internal control. This implies that expectation of the respondents to
their audit committee is to build up a strong internal control by making policies and
evaluating the implementation of the policies.
Table 16. Value added by the audit committee
CHARACTERISTICS
FREQUENCY PERCENTAGE
5 and below
They determine errors
16
47.06
The Board of directors are able to make wise
decisions regarding implementation of the
rules and regulations as well as the proper
attitude of members towards the cooperative
5
14.71
They give suggestions on other committees like
the credit committee on how to handle, process
and assess loan applications
5
14.71
They guide the management personnel on how
to allocate funds.
4
11.76
They serve as deterrent to coop personnel learn
and accept their mistakes
2
5.88
They help in achieving the goals of the
cooperative
1
2.94
They determine problems in the operation of
the business and gives recommendations not
only to operations but also in giving
recommendations to other committees for
1
2.94
further improvement
TOTAL
34
100.00
Evaluation On The Performance Of Audit Committee Of Selected Cooperatives In La Trinidad,
Benguet / Montes, April M, April 2011
41
Table 16. Continued.
CHARACTERISTICS
FREQUENCY PERCENTAGE
Above five years
They suggest other business ventures
2
6.45
They give suggestions taking into consideration
on the current situation of the Cooperative
3
9.68
Helps in aid of legislation, policy making for
strong internal control.
6
19.35
They make the management accurate in its
performance/work
1
3.23
They asses the implementation of the manual of
operation of the Cooperative
6
19.35
They monitor the delinquency rate, collection
rate liquidity rate coupled with their
recommendations to the management and to the
Board of directors
1
3.23
Their recommendations are used in decision
making of the Board of directors and
management in such a way that their
recommendations turns to be a resolution
4
12.90
They examine not only the financial aspect but
even non financial aspects like management,
implementation of policies
1
3.23
The audit committee being evaluated does not
function
3
9.68
Evaluation On The Performance Of Audit Committee Of Selected Cooperatives In La Trinidad,
Benguet / Montes, April M, April 2011
42
SUMMARY, CONCLUSIONS AND RECOMMENDATIONS
Summary
The study aims to evaluate the performance of the audit committee of selected
cooperatives in La Trinidad, Benguet. The study focused on the timeliness, reliability,
and accuracy of audit findings, and even on the value added by the audit committee. It
also looked on to teamwork, confidence, personal habits, language proficiency and
attitude of the audit committee. It also looked into the initiative, dependability, job
knowledge, decision making skills and interpersonal relations as well this study this study
focused on the frequency of auditing and the reason for practicing such frequency.
The auditor committee and management staff of the cooperatives that existed five
years and below and above five years were the respondents. The data were gathered
through the survey questionnaire and through interview. In the study it has been observed
that some of the cooperatives do not have a functional audit committee.
The reliability and accuracy of the audit findings of selected cooperatives of either
category were satisfactory. In the study it has been observed that some of the
cooperatives do not have a functional audit committee. It has also been observed that
most of the cooperatives were conducting their audit monthly and quarterly.
It was observed that some of the cooperatives do not have a functional audit
committee that is why they rated their audit committees as needs improvement and same
with the auditors they rated themselves as unsatisfactory for not functioning. Some of the
audit committees of the cooperatives do not want to undergo, into self evaluation by this
situation a change on respondents on that cooperative, instead the board of directors rated
the auditors.
Evaluation On The Performance Of Audit Committee Of Selected Cooperatives In La Trinidad,
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The value added by the audit committee on their cooperative gives much
emphasis on the ability of the recommendations to help the cooperative identify its
problems and by making remedies on the problems. The traditional overview on the
committees function on correcting errors is still seen as their main function of the
respondents from the cooperatives that existed five years and below, while those that
existed beyond five year looks at the function of the audit committee as developing
policies and evaluating those policies to build up a strong internal control.
Conclusions
The following conclusions were developed base on the results of this study.
1. Majority of the audit committee and management staff are at the age of 41 to
50.
2. Majority of the cooperatives are conducting their internal audit monthly and
quarterly.
3. Majority of the cooperatives are practicing such frequency because it was
stated in their by-laws.
4. The timeliness, reliability and accuracy of audit findings of the majority of
both cooperatives in either category are consistently produced.
5. On the teamwork, confidence, personal habits, language proficiency, and
attitude of the audit committee, majority of the selected cooperatives’ auditors are
consistent in sharing responsibilities, learning from their experience and absorbs
criticisms, they come in proper attire and speaks according to culture in the workplace,
the auditors can speak, read and write in English, and are friendly with others. Some
auditors are not consistent in maintaining this kind of characteristics.
Evaluation On The Performance Of Audit Committee Of Selected Cooperatives In La Trinidad,
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6. On the initiative and dependability of auditors of selected cooperatives on
both category majority of the audit committee works independently, demonstrate
enthusiastic behavior, and the auditors consistently delivers a quality of work.
7. On the job knowledge and decision making skills of selected cooperatives’
audit committee on both category possesses the necessary knowledge to complete job
tasks, understand and adequately accomplish their job duties and responsibilities,
analyzes fieldwork results to arrive at logical conclusions but on this aspect the auditors
of the cooperatives that existed beyond five years were not consistent in this aspect, the
auditors identify problems and its causes to come up with recommendations and this
recommendations further explains the rationale behind those recommendations.
8. On the communication skills and interpersonal relations of selected
cooperatives’ audit committee on both category auditors speaks clearly and with ease,
write logically and well organized and communicate with confidence while treating
others with respect, listens effectively and explain some unfamiliar words.
Recommendations
1. The value being added by the audit committee is merely seen to correct errors.
This should not be seen as the function of the audit committee.
2. The cooperatives should be providing trainings to the audit committee to
educate them about their function. Educating the committee is just a half way on their
trainings. The cooperatives should also develop the committee’s personality towards their
work.
3. On the cooperatives whose internal audit is separated from the audit
committee. Their audit committee tends to totally depend on the internal audit, this
Evaluation On The Performance Of Audit Committee Of Selected Cooperatives In La Trinidad,
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should not be the case it is recommended that the internal audit is joined with the audit
committee to lead the committee.
4. A frequent evaluation on the performance of the committees could help the
cooperative know the needs of their committee. This will help the cooperative motivate
their committee.
Evaluation On The Performance Of Audit Committee Of Selected Cooperatives In La Trinidad,
Benguet / Montes, April M, April 2011
46
LITERATURE CITED
ANONYMOUS. 2007. Audit Committee vs. Effective Audit the Difference Counts.
Retrieved July 24, 2010 from http:// cpcaf.aicpa.org/resources/sabarnes/oxley
COOPERATIVE DEVELOPMENT AUTHORITY. 2010. Philippine Cooperative Code
of 2008 With Its Implementing Rules and Regulations. Cooperative Development
Authority. P. 70.
DOUGLAS, Z. E. 2009. Internal Auditor. Retrieved July 24, 2010 from
http://www.metricstream.com/insights/audit_performance_measurement
LAND BANK OF THE PHILIPPINES. 2006. Seminar-Workshop on Coop Audit
Process and Internal Control Assessment. Land Bank of the Philippines. Pp 1-2.
LE PANNE, S. 2006. What is Auditing. Rhode Island Board of Governors for Higher
Education. Retrieved July 24, 2010 from www.ribghe.org.
MC CUIAG, B. 2009. Internal Audit Performance: Thoughts on What to Audit and How
to Audit It. Retrieved July 24, 2010 from http:// www.inside-
grc.com/2009/10/07/internal audit performance
NATIONAL CONFEDERATION OF COOPERATIVES NORTHERN LUZON, 2002.
Accountants’ forum seminar manual. National Confederation of Cooperatives
Northern Luzon, Chapter 3. P1.
TIMOTHY J. F. and KALBERS, L. P. 1993. Internal Auditor Performance: A
Comparison of Self Rating and Supervisory Rating. Retrieved July 24, 2010
from http:// www.emerald insight.com/10/08/eb017609
TRIPURA COOPERATIVE. 2004. Audit Manual. Retrieved July 24, 2010 from http://
www.osufacts.okstale.edu
Evaluation On The Performance Of Audit Committee Of Selected Cooperatives In La Trinidad,
Benguet / Montes, April M, April 2011
47
APPENDIX A
Letter to the Respondents
College of Agriculture
DEPARTMENT OF AGRICULTURAL ECONOMICS AND
AGRIBUSINESS MANAGEMENT
Benguet State University
La Trinidad, Benguet
November 2010
_________________________
_________________________
_________________________
Sir/Madam;
I am April M. Montes, a student of Benguet State University, taking up Bachelor of
Science in Agribusiness major in Cooperative Management. I am presently conducting a
research titled “ EVALUATION ON THE PERFORMANCE OF AUDIT COMMITTEE
IN LA TRINIDAD, BENGUET” as a partial requirement of my course.
In this connection, may I request a portion of your precious time in a scheduled basis to
answer some questions that will help in the accomplishment of the research work and
please give your honest answers to the questions. Rest assured that all information
provided will be treated with utmost confidentiality.
Thank you very much for sharing me a part of your precious time. God Bless and more
power!
Sincerely yours,
APRIL M. MONTES
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APPENDIX B
Survey Questionnaire
I. General Information
1. Name of Cooperative:
2. Type of Cooperative:
( )Multi-purpose
( )Savings and Credit
( )Consumers
( )Marketing
( )Services
( )Others specify
3. Name:(optional)
Age:
Gender:
4. Position:
Number of years in the Co-operative:
5. Civil Status:
( ) Single
( ) Married
( ) Widow
( ) others (pls. specify)
6. Educational Attainment:
( ) Elementary
( ) High school
( ) College
( ) Others (pls. specify)
II. Policies and Practices in Auditing
1. Frequency of Auditing?
( ) Daily
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( ) Weekly
( ) Monthly
( ) Quarterly
( ) Semi – annually
( ) Annually
2. Reason for practicing such frequency?
( ) It is stated in the by laws
( ) Others (pls. specify)
III. Auditor Performance Evaluation
Ratings
(S) Satisfactory – Performance consistently meets the job requirements and expectations
of the auditors position in all aspects.
(NI) Needs Improvement – Performance meets most essential job requirements, however,
work is not consistent requires revision and some degree of supervision.
(UN) Unsatisfactory – Performance does not meet minimum requirements frequent
revision and high degree of supervision and direction
Auditor Performance Evaluation
Criteria
S
NI
UN
A. General Questions
1. Timeliness of Audit
Comments:
2. Reliability of audit findings during the audit.
Comments:
3. Accuracy of audit findings.
Evaluation On The Performance Of Audit Committee Of Selected Cooperatives In La Trinidad,
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Comments:
4. Team work – The Auditors share responsibilities, confers with
others, honor commitments, helps others do their jobs, and seeks
helps when needed
Comments:
S
NI
UN
5. Confidence – The Auditors learns from experience, ask
questions and corrects mistakes and absorbs criticism and
direction without feeling defeated, resentful or insulted.
Comments:
6. Personal Habits – The Auditors comes in proper attire and
grooming, tone of voice and vocabulary according to culture in
the workplace.
Comments:
7. Language Proficiency – The Auditors speaks, reads and writes
standard English in a business like way.
Comments:
8. Attitude – The Auditors keeps a positive and optimistic outlook
despite changes, is friendly with others.
Comments:
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B. Initiative and Dependability of Auditors
S
NI
UN
1. Works independently, is self – directed.
Comments:
2. Demonstrates proactive, positive and enthusiastic attitude and
behavior.
Comments:
3. Consistently delivers a quality of work product that is
detailed, accurate, reflective of the work performed, and requires
minimal work.
Comments:
C. Job Knowledge and analytical/Decision Making Skills
S
NI
UN
1. Possesses the knowledge necessary to complete job tasks.
Comments:
2. Understands and adequately accomplish job duties and
responsibilities.
Comments:
3. Analyzes fieldwork results to arrive at logical conclusions.
Comments:
Evaluation On The Performance Of Audit Committee Of Selected Cooperatives In La Trinidad,
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4. Recognizes problems, identifies cause and makes potential
recommendations.
Comments:
5. Explains the rationale behind decisions and recommendations
as appropriate.
Comments:
D. Communication Skills and Interpersonal Relations
S
NI
UN
1. Oral communications are clear and spoken with ease.
Comments:
2. Written communications are logical and well organized.
Comments:
3. Communications with confidence while treating others while
treating others with respect, courtesy, and fairness.
Comments:
4. Listens effectively, respond clearly and directly, and seeks to
clarify and confirm the accuracy of their understanding or
unfamiliar of vague terms.
Comments:
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5. Contributes to the Co-operative and develops positive working
relationships.
Comments:
E. Over all Level of Performance of Audit Committee.
S
NI
UN
F. Value Added by the Audit Committee
_____________________________________________________________
_____________
Evaluation On The Performance Of Audit Committee Of Selected Cooperatives In La Trinidad,
Benguet / Montes, April M, April 2011
MONTES, APRIL M, APRIL 2011. Evaluation on the Performance of Audit Committee
of Selected Cooperatives in La Trinidad, Benguet. Benguet State University, La Trinidad,
Benguet.
Adviser: Jovita M. Sim, MSc.
ABSTRACT
This study was conducted to determine the timeliness, reliability, and accuracy of audit
findings, and even on the value added by the audit committee. It was also conducted to looked
into the teamwork, confidence, personal habits, language proficiency and attitude of the audit
committee. Furthermore, it also looked into the initiative, dependability, job knowledge, decision
making skills and interpersonal relations as well. This study focused on the frequency of auditing
and the reason for practicing such frequency.
The findings show that most cooperatives practice their frequency in audit because it was
stated in their by-laws and most of the cooperatives practice monthly and quarterly auditing.
Most of the respondents rated their auditor’s timeliness, reliability and accuracy of audit findings
were delivered with consistency. Teamwork, confidence, personal habits, language proficiency
and attitude of the audit committee were also delivered well by meeting all their job
requirements and also by meeting all the expectations from them in this area and the auditors
were consistent in this aspects; same with the auditors initiative, dependability, job knowledge,
decision making and interpersonal relations.
On the overall performance, majority (51.61%) of the cooperative that existed 5 years
and below and 64.71% beyond five years were rated satisfactory. For cooperative that existed
i
below five years, 32.35% of the respondents rated their auditors as needs improvement and
2.94% of the respondents rated their auditors as unsatisfactory. Respondents from cooperatives
that existed beyond five years, 25.81% rated their auditors as needs improvement and
unsatisfactory. Majority of the auditors deliver a consistency in meeting the job requirements and
the expectations from them, however, there were still auditors who were not consistent in
meeting all the job requirements and expectations from them and there were auditors who did not
meet all their job requirements and expectations from them.
To solve problems regarding those committees that does not function, some cooperatives
rely on their external auditors and hire internal auditors to do the function of the committee.
Though, some cooperatives sent their auditors to trainings but this was not enough to motivate
them to do their function. Giving trainings to auditors is not enough to motivate them but
integration or values orientation on the auditors’ personality towards their work could give a
good motivation on the auditors to function well.
INTRODUCTION
Rationale
Today’s business climate has put more emphasis on audit responsibilities. Many
Cooperatives are establishing Audit Committee or Supervisory committee in order to
fulfill highly important duties such checking on the proper utilization of funds. Auditing
of Cooperative’s financial records is one of the committees responsibility and directly
accountable and responsible to the General Assembly. It shall have the power and duty to
continuously monitor the adequacy and effectiveness of the Cooperative’s management
on control system and audit the performance of the cooperative and its various
responsibility centers as stated in the new Cooperative Code RA 9520 of 2008 Art. 43.
The management is responsible for achieving their Mission Statement through the
management’s goals and objectives by the use of effective and efficient resources and
compliance with laws, regulations, and policies.
Internal audit helps the management in distributing the responsibilities by giving
an independent and objective evaluation on its existing internal control on the
cooperatives operations and services. Internal Audit also helps the management develop
and improve its control and processes on its operations and services. However, the
management should always have the control on the cooperatives operations and should
have the ultimate responsibility for their performance (Le Panne, 2006).
The role of Internal Audit Committee is indeed important to Cooperatives and by
measuring performance of Audit Committee ensures high quality standards for audit
strategy, execution and reporting. In addition evaluation of audit performance to the
Evaluation On The Performance Of Audit Committee Of Selected Cooperatives In La Trinidad,
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2
Organization’s mission and objectives and in return ensures that stakeholders audit needs
are fulfilled.
Evaluating the performance of auditors is not by measuring the information
created or produced that were made available and the status and recommendations on risk
and internal control. The information they produce may pertain to the numbers and types
of risk and internal controls faced by the cooperative, the process or other contexts where
risk and controls exist, the impact on the performance of cooperative and the threats
posed by risk, risk indicators, performance indicators, deficiencies, issues, loss, events
and incidents. In summary, the role of internal audit is to drive up the quality and quantity
of reliable information on the status of risk control. Evaluating the performance helps
develop the auditor skills by constructive feedback and positive reinforcement on work
performed, in which this study wants to focus.
Statement of the Problem
Primarily, this study evaluated the performance of internal audit committee of
selected Primary Cooperatives in La Trinidad, Benguet. Thus, it aimed to answer the
following questions.
1. What is the frequency of internal auditing practiced by the cooperative?
2. What is the reason for practicing such frequency in internal auditing?
3. What is the level of effectiveness and reliability of audit findings during the
audit?
4. What is the level of performance of internal audit committee in auditing the
internal control of the cooperative?
5. What are the value added by the audit committee?
Evaluation On The Performance Of Audit Committee Of Selected Cooperatives In La Trinidad,
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Objective of the Study
The study aimed to:
1. Find out the frequency of internal auditing practiced by the cooperative;
2. Identify the reason for practicing such frequency in internal auditing;
3. Determine the level of effectiveness and reliability of audit findings during the
audit;
4. Determine the level of performance of internal audit committee in auditing the
internal control of the cooperative;
5. Identify the value added by the audit committee.
Importance of the Study
The result of this study would serve as a guide in developing audit skills of audit
committee and aspiring audit committee members in maintaining a reliable internal audit
committee. The results could be used in the improvement of auditing procedures by the
cooperative and for the management in improving their operations and management of
funds. Furthermore, the audit results if properly done would develop trust to the
cooperative, its officers and management staff and limits or reduces or prevents loss or
bankcruptcy if auditing is done regularly. Through this, trust of the community where the
cooperative is located would also be developed. In addition, this study could be used as
reference for further study.
Scope and Delimitations
The study covered selected credit cooperatives in La Trinidad, Benguet for the
year 2010. The investigation was limited to the Co-operatives Audit Committee or
Evaluation On The Performance Of Audit Committee Of Selected Cooperatives In La Trinidad,
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Supervisory Committee policies and practices of cooperatives with at least two years of
operation.
Evaluation On The Performance Of Audit Committee Of Selected Cooperatives In La Trinidad,
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REVIEW OF LITERATURE
Audit Defined
Audit is the independent assessment of the performance of management and the
examination and verification of accounting records and ascertain the fair presentation of
the financial statements with end view, of providing management with the needed
recommendations for improvement (Land Bank of the Philippines, 2006).
The origin of audit can be traced to the need to ensure that a person who comes
into possession of money or property belonging to another has properly accounted for it.
The system of checking records of financial transaction in earlier time was confined to
the scrutiny of cash transactions. Moreover, such checking was limited to only public
accountants. The person whose duty it was to check such accounts became known as the
Auditor, the word being derived from the Latin word “Audire” meaning to hear as
originally the auditor merely use to “hear” the accounts to pass transactions are genuine
or correct (Tripura Cooperative, 2004).
Underlying Philosophy on the Conduct of Audit
1. Protection of coop resources from possible losses;
2. A certain fair presentation of the financial statements and;
3. Assesses the overall performance of coop management (Land Bank of the
Philippines, 2006).
Purpose of Audit
1. Assess performance of management, committees and board of directors;
2. Examine and verify records and evidences;
3. Determine adherence to formulate policies and procedures and;
Evaluation On The Performance Of Audit Committee Of Selected Cooperatives In La Trinidad,
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4. To give recommendations as basis for improving the cooperatives operational
System (Land Bank of the Philippines, 2006).
Objectives of Cooperative Auditing
Assist coop management and the effective discharge of their functions by
furnishing them on a regular basis of at least once recommendations (Land Bank of the
Philippines, 2006).
To express an opinion on the financial statements and to see to it that financial
statements are fairly presented (National Confederation of Cooperatives Northern Luzon,
2002).
Types of Audit
1. Financial Audit limits itself to the examination of accounting
records/documents and other evidences for the purpose of assessing the strengths and
weaknesses of the accounting systems and verifying the reliability of the financial
statements (Land Bank of the Philippines, 2006).
2. Management Audit is concerned with the assessment of the performance of the
cooperative board of directors, members of management team and the different
committees created to carry out plans and projects of the cooperative (Land Bank of the
Philippines, 2006).
3. Social Audit it is a procedure where the cooperative assesses its social impact
and ethical performance vis-à-vis its stated mission, vision, goals and code of social
responsibility (Cooperative Development Authority, 2010).
Evaluation On The Performance Of Audit Committee Of Selected Cooperatives In La Trinidad,
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Coop Audit Procedure
A. Familiarize yourself with coop policies and procedures
1. Read the articles of cooperation by laws and any amendments there to;
2. Read minutes of Board of Directors meeting, General Assembly and ownership
meetings;
3. Take note of policies or resolutions promulgated and adopted affecting
cashiering/accounting/lending transactions;
4. Take note of the adequacy of bond on accountable officers;
5. Examine contracts, leases, policies, marketing agreement and others;
6. All matters affecting conduct of audit should be noted. Copies of documents
should be secured and;
7. Secure a copy of the financial statements-Take note of the auditors adjusting
entries and recommendations if implemented the succeeding year (Land Bank of the
Philippines, 2006).
B. Evaluate Coop Internal Control
1. Separation of incompatible functions (receiving/disbursing, recording);
2. Use of double entry (bookkeeping);
3. Prompt recording and balancing of accounts;
4. Use of serially numbered forms (official receipts/launchers) Custodian of
unused pre numbered forms. Take physical inventory of blank checks and all account
forms;
5. Proper filing of used receipts, invoices and cash vouchers with supporting
documents and;
Evaluation On The Performance Of Audit Committee Of Selected Cooperatives In La Trinidad,
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6. Comparison of accounting proofs and controls. Actual Financial statements
figures vs. budget bank reconciliation, audit the physical safeguard of assets (Land Bank
of the Philippines, 2006).
Specific Documents for Examination
1. Source documents;
2. Book of accounts;
3. Aging of accounts/loans receivable;
4. Schedule of fixed assets;
5. Inventory listing;
6. Schedule of accounts/loans payable and;
7. Schedule of members-Accounts receivables, loans, and receivable, Paid-up
Capital, Time and Savings Deposit (Land Bank of the Philippines, 2006).
Conducting Cash Count
1. Conduct cash count in the presence of the custodian, verify cash book balance;
2. Note of cash advances if authorized and by whom? and;
3. Obtain a certificate from the custodian confirming amounts counted (Land
Bank of the Philippines, 2006).
Assessing Performance
The first step towards assessing the internal audit function involves reviewing the
management expectations and achievements with focus in improving internal audit effort
(Douglas, 2009).
Evaluation On The Performance Of Audit Committee Of Selected Cooperatives In La Trinidad,
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Importance of Evaluating Performance
of the Audit Committee
1. Measures the effectiveness of audit in covering key areas;
2. Measures the reliability of audit findings during the audit;
3. Measures the duration and timeliness of the audit;
4. Measures the accuracy of audit findings;
5. Measures the value of the audit recommendation and:
6. Measures the value added by internal audit committee (Timothy and Kalbers,
1993).
Importance of Effective Audit Committee
Stakeholders want effective control of finances. The higher the cash inflow, the
greater the need for an effective audit committee. An effective audit committee is an
essential tool in overseeing the financial health of a cooperative. Some areas of common
audit committee oversight include:
1. Key areas of business and financial risk;
2. Code of ethics;
3. Internal controls and systems;
4. External audit activity and relationship;
5. Periodic financial reporting;
6. Internal audit activity;
7. Key personal selection for critical financial control positions and;
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8. Establish procedures for handling complaints or concerns regarding internal
accounting controls, audit matters or questionable accounting practices (Anonymous,
2007).
Internal Audit Performance; Thought on What
to Measure and How to Measure it.
Mc Cuiag (2009) who participated in the Global Auditing Information Network
(GAIN) project conducted 1997 on measuring performance of auditors stated that a
physician spends a lot of time writing prescriptions. Should we measure the effectiveness
of physicians by number of pills they prescribe or their speed in doing?. When we
measure the number of audits and audit findings that are what we are doing for auditors.
It misses the big picture, I believe we measure the value of medical professionals not by
the activities they perform, e,g prescribing medication, but by the value they add in terms
of improved health, early problem diagnosis, and life expectancy, pain avoided or lessen
etc. We don’t measure the “activities” of dentist and lawyers in terms of cavities filled or
lawsuits filed, we measure dental health achieved, legal problems avoided and justice
served.
Definition of Terms
Timeliness – appropriateness; suitability of audit findings
Reliability – effectiveness; dependability of audit findings
Accuracy – truthfulness of audit findings
Value – helpfulness of the audit committee
Frequency – refers to how often they conduct
Effectiveness – refers to the usefulness of audit findings
Evaluation On The Performance Of Audit Committee Of Selected Cooperatives In La Trinidad,
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METHODOLOGY
Locale and Time of Study
The research was conducted at the Municipality of La Trinidad, Benguet. This
was conducted from November to December 2010.
Respondents of the Study
The respondents of the study were the Audit Committee as a self-evaluation and
the Management staffs particularly to the Cash Custodian during the Audit, Accountant,
Loan officer, and the Manager of selected Credit Cooperatives in the Municipality.
The respondents were taken from ten cooperatives, where 5 of this were Benguet
Traders MPC, La Trinidad Organic Producers MPC, La Trinidad Police Credit
Cooperative, Life in the Spirit Fellowship MPC, and Seeds and Fruits, MPC, in which 34
respondents were derived from these cooperatives; while 5 of these were the Barangay
Alapang Multi-Purpose Cooperative, Baguio-Tomay Jeepney Operators Association
(credit), Benguet State University MPC and La Trinidad Vegetable MPC, in which 31
respondents were derived. Total respondent of the study was 65.
Data Gathering Procedure
A questionnaire was developed and pre-tested for validation. Questionnaires
were reconstructed based on the result of pre-test. A personal interview with the aid of
questionnaire was done in gathering necessary data and actual observations were also
done.
Evaluation On The Performance Of Audit Committee Of Selected Cooperatives In La Trinidad,
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Data Gathered
The data gathered for this study included the frequency and reasons for practicing
such frequency in auditing. It also included the level of performance in conducting audit
on areas of internal control and level of satisfaction on the recommendations given by the
audit committee to the co-operative.
Data Analysis
The data gathered were tabulated and analyzed using frequency analysis,
descriptive analysis and other appropriate statistical tools.
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RESULTS AND DISCUSSION
Profile of Respondents
Table 1 presents the profile of respondents in terms of age, gender, civil status,
educational attainment and the list of selected cooperatives.
Number of cooperatives. There were 52.31% of the respondents on the
cooperatives that existed five years and above and a 47.69% of the respondents on
cooperatives that existed above five years that totaled to 65 respondents.
Age. Most (38.46%) of the respondents belonged to age bracket of 41 to 50 years
old followed by 21 to 30 years of age with 23.08%, 31 to 40 years of age with 18.46%,
and the least (4.62%) belonged to the age bracket of above 60 years of age. This indicates
that majority of the members of audit committee and management staffs of selected
cooperatives in La Trinidad, Benguet were aged from 41 to 50 years of age. The mean
age of the respondents was 40.54 years.
Gender. The table shows that majority (56.92%) of the members of audit
committee and management staffs were female. This shows that women play an
important role in the supervision and management of the cooperative.
Civil status. Although majority (58.46%) of respondents were married and a
significant number (41.54%) were single, it implies that unmarried members of the audit
committee and managements staff could play an important role in having much time in
doing their function in the cooperative.
Educational attainment. The table shows that majority (73.85%) of the
respondents graduated from college and 23.08% of the respondents had graduated from
high school while a minimum of 1.54% were taking up their masteral degree. This
Evaluation On The Performance Of Audit Committee Of Selected Cooperatives In La Trinidad,
Benguet / Montes, April M, April 2011
14
Table 1. Profile of respondents
PARTICULAR
FREQUENCY
PERCENTAGE
Above 6 years
BALMUCO
6
9.23
BATJODA
6
9.23
BODA MPC
4
6.15
BSU MPC
7
10.77
LTVTP MPC
8
12.31
SUB-TOTAL
31
47.69
2 to 5 years
TRADERS
8
12.31
LA TOP MPC
7
10.77
LTPC
6
9.23
LSF MPC
5
7.69
SF MPC
8
12.31
SUB-TOTAL
34
52.31
TOTAL
65
100.00
situation implies that educational attainment plays a great role on the members of audit
committee and management staff in performing their function in an effective way and in
helping the success of a cooperative.
Evaluation On The Performance Of Audit Committee Of Selected Cooperatives In La Trinidad,
Benguet / Montes, April M, April 2011
15
Table 1. Continued.
PARTICULAR
FREQ
UENCY
PERCE NTAGE
Age
Above 60
3
4.62
51-60
10
15.38
41-50
25
38.46
31-40
12
18.46
21-30
15
23.08
TOTAL
65
100.00
Gender
Female
37
56.92
Male
28
43.08
TOTAL
65
100.00
Civil status
Single
27
41.54
Married
38
58.46
TOTAL
65
100.00
Educational attainment
High school graduate
15
23.08
College graduate
48
73.85
Bachelor of Law
1
1.54
MAP in progress
1
1.54
TOTAL
65
100.00
Evaluation On The Performance Of Audit Committee Of Selected Cooperatives In La Trinidad,
Benguet / Montes, April M, April 2011
16
Frequency in Auditing as Practiced by Cooperatives
Table 2 presents how many times internal auditing is conducted. The findings
shows that cooperatives that existed below five years were conducting their internal audit
monthly while cooperatives that existed above five years conducts their internal audit
monthly and quarterly, while having the least onl;y one (14.29%) only one of the
cooperative respondents conducts their internal audit weekly. Though there is a least
number of cooperative conducting their internal audit weekly this practice could give
consistent supervision on the cooperative. Major reason for not conducting a weekly
internal auditing is availability of time/time constraints of auditors.
Reason for Practicing such Frequency
Table 3 shows the reason of cooperatives in choosing the above frequencies.
Cooperatives that existed below five years were practicing their frequency in auditing
because it was stated in their by-laws (60%) while a 20% of the cooperatives practice
such frequency because it was decided by the Board of Directors and this were preferred
by the auditors, same as those cooperatives that existed above five years having the same
reason that it was stated in their by-laws (80%) and 20% of the cooperatives were
practicing their frequency in auditing because it was preferred by the auditors.
Table 2. Frequency in auditing practiced by cooperatives
BELOW 5 YEARS
ABOVE 5 YEARS
FREQUENCY
FREQUENCY PERCENTAGE
FREQUENCY PERCENTAGE
Weekly
-
-
1
14.29
Monthly
3
60
3
42.86
Quarterly
2
40
3
42.86
TOTAL
5
100
7
100.00
Evaluation On The Performance Of Audit Committee Of Selected Cooperatives In La Trinidad,
Benguet / Montes, April M, April 2011
17
Table 3. Reason for practicing such frequency
BELOW 5 YEARS
ABOVE 5 YEARS
FREQUENCY
FREQUENCY PERCENTAGE FREQUENCY PERCENTAGE
It is stated in the
3
60
4
80.00
by laws
BOD decisions
1
20
-
-
Preferred by the
1
20
1
20.00
auditors
TOTAL
5
100
5
100.00
Ratings of Audit Committee and Management
Staff on Timeliness of Audit
Table 4 shows the ratings of audit committee and management staff on timeliness
of audit. The audit committee and management staff of cooperatives that existed below
five years rated their timeliness of audit satisfactory and 35.29% of the respondents rated
it as needs improvement. This implies that the timeliness of audit consistently meets the
job requirements and expectations on the auditors in the aspect of timeliness of audit.
Though least of the respondents subjected their timeliness of audit for a need of
improvement this must not be taken aside, this imply that the auditors meets the job
requirements but they do not consistently meet regarding the timeliness of audit, this may
require a degree of supervision and revision on their conduct of audit to meet a consistent
timeliness of audit.
The respondents of cooperatives that existed above five years rated their
timeliness of audit satisfactorily and a 25.81% of the respondents rated it as a need for
improvement and 9.68% of the respondents rated it as unsatisfactory. This implies
Evaluation On The Performance Of Audit Committee Of Selected Cooperatives In La Trinidad,
Benguet / Montes, April M, April 2011
18
Table 4. Ratings of audit committee and management staff on timeliness of audit
BELOW 5 YEARS
ABOVE 5 YEARS
FREQUENCY
FREQUENCY PERCENTAGE FREQUENCY PERCENTAGE
Satisfactory
22
64.71
20
64.52
Needs
12
35.29
8
25.81
Improvement
Unsatisfactory
-
-
3
9.68
TOTAL
34
100.00
31
100.00
on timeliness on audit auditors consistently perform their job well with a few rate of
respondents rated that the timeliness on audit needs a revision and some degree of
supervision to consistently perform their job well and some respondents rated it
unsatisfactory which implies that a need of frequent revision and a high degree of
supervision with direction to motivate the auditors to meet their job requirement
regarding their timeliness of audit.
Ratings of Audit Committee and Management
Staff on Reliability of Audit Findings
Table 5 shows the rating of the audit committee and management staff on
reliability of audit findings. The table shows that respondents of cooperatives that existed
five years and below rated the reliability of audit findings satisfactory and 38.24% of the
respondents rated it as needs improvement. This implies that the audit findings of
auditors are reliable, this also implies that the respondents trust the auditors audit findings
that this could give improvement on the cooperatives financial and non-financial aspects
that was audited. Though, majority of the respondent rated the reliability of audit
Evaluation On The Performance Of Audit Committee Of Selected Cooperatives In La Trinidad,
Benguet / Montes, April M, April 2011
19
Table 5. Ratings of audit committee and management staff on reliability of audit findings
BELOW 5 YEARS
ABOVE 5 YEARS
FREQUENCY
FREQUENCY PERCENTAGE FREQUENCY PERCENTAGE
Satisfactory
21
61.76
20
64.52
Needs
13
38.24
8
25.81
Improvement
Unsatisfactory
-
-
3
9.68
TOTAL
34
100.00
31
100.00
findings as satisfactory. It should be noted that some of the respondents rated it as needs
improvement which implies that the respondents want further improvement on the
consistency on the reliability of audit findings.
The respondents of cooperatives that existed above five years rated the reliability
of audit findings as satisfactory (64.52%), while 25.81% rated the audit committee with a
rating that needs improvement and 9.68 % of the members rated it as unsatisfactory. This
implies that the audit findings were consistently reliable. The least percentage of
respondents rated the reliability of audit findings unsatisfactorily which implies that some
of those cooperatives audit findings were absolutely unreliable which needs frequent
revision and a high degree of supervision and direction for the committee to have
reliable audit findings.
Ratings of Audit Committee and Management
Staff on Accuracy of Audit Findings
Table 6 shows the ratings of audit committee and management staff of
cooperatives that existed for five years and below and above five years on the accuracy of
Evaluation On The Performance Of Audit Committee Of Selected Cooperatives In La Trinidad,
Benguet / Montes, April M, April 2011
20
audit findings. The table shows that the those respondents of cooperatives that existed
below five years rated the accuracy of audit findings satisfactory which implies that most
of the audit findings of the audit committee of those cooperatives are accurate and a
35.29% of the respondents rated the accuracy of audit findings as needs improvement
which implies that most of the audit findings of the audit committee of those cooperatives
are accurate but it is not consistently accurate and requires revision and supervision to
consistently produce an accurate audit findings.
Sixteen (51.61%) of respondents of those cooperatives that existed above five
years rated the accuracy of audit findings satisfactory, which implies that the audit
committee were producing an accurate audit findings, while 38.71% of the respondents
rated their audit committee’s accuracy of audit findings as needs improvement, this
implies that their audit committee were not consistently producing an accurate audit
findings. Three or 9.68% of the respondents rated their audit committee’s accuracy of
audit findings unsatisfactory, which implies that their audit committee does produces an
inaccurate audit findings and needs a frequent revision and high degree of supervision
and direction to motivate them to give an accurate audit findings.
Table 6. Ratings of audit committee and management staff on accuracy of audit findings
FREQUENCY
BELOW 5 YEARS
ABOVE 5 YEARS
FREQUENCY PERCENTAGE FREQUENCY PERCENTAGE
Satisfactory
22
64.71
16
51.61
Needs
12
35.29
12
38.71
Improvement
Unsatisfactory
-
-
3
9.68
TOTAL
34
100.00
31
100.00
Evaluation On The Performance Of Audit Committee Of Selected Cooperatives In La Trinidad,
Benguet / Montes, April M, April 2011
21
Ratings of Audit Committee and Management
Staff on to Team Work
Table 7 shows the rate of the audit committee and managements staff of
cooperatives that existed for five years and below and above five years on the team work
of audit committee. The table shows that 82.35% of the respondents of cooperatives that
existed below five years rated their audit committee’s team work satisfactory, same with
the 58.06% of respondents of the cooperatives that existed above five years, which
implies that the auditors share responsibilities, confers with others, honor commitments,
helps others to do their jobs, and seeks help when needed, while 17.65% of the
respondents of cooperatives that existed below five years rated their audit committee’s
team work as needs improvement, same as with 32.26% of the respondents of those
cooperatives that existed above five years, which implies that their audit committees team
work needs more improvement in sharing responsibilities, conferring others, honoring
commitments, helping others and seeking help when needed. Three or 9.68% of the
respondents of those cooperatives that existed above five years rated their audit
committee unsatisfactory, which implies that team work of the audit committee is not
seen to their audit committee.
Table 7. Ratings of audit committee and management staff on teamwork
FREQUENCY
BELOW 5 YEARS
ABOVE 5 YEARS
FREQUENCY PERCENTAGE FREQUENCY PERCENTAGE
Satisfactory
28
82.35
18
58.06
Needs
6
17.65
10
32.26
Improvement
Unsatisfactory
-
-
3
9.68
TOTAL
34
100.00
31
100.00
Evaluation On The Performance Of Audit Committee Of Selected Cooperatives In La Trinidad,
Benguet / Montes, April M, April 2011
22
Ratings of Audit Committee and Management
Staff on Confidence
Table 8 shows the rating of audit committee and management staff of
cooperatives that existed for five years and below and above five years on the confidence
of audit committee. The 73.53% of the respondents of cooperatives that existed below
five years rated their audit committee’s confidence satisfactory, same with the 74.19% of
respondents of the cooperatives that existed above five years, which implies that the
members of the audit committee learns from experience, ask questions and corrects
mistakes and absorbs criticism and direction without feeling defeated or insulted, while
26.47% of the respondents of cooperatives that existed below five years rated their audit
committee’s confidence as needs improvement, same with the 16.13% of respondents of
the cooperatives that existed above five years, which implies that their audit committee
shows confidence but this was not consistently seen thus needs more improvement. A
9.68% of respondents of the cooperatives that existed above five years rated their auditors
as unsatisfactory, which implies that their audit committee does not show confidence.
Table 8. Ratings of audit committee and management staff on confidence
FREQUENCY
BELOW 5 YEARS
ABOVE 5 YEARS
FREQUENCY PERCENTAGE FREQUENCY PERCENTAGE
Satisfactory
25
73.53
23
74.19
Needs
9
26.47
5
16.13
Improvement
Unsatisfactory
-
-
3
9.68
TOTAL
34
100.00
31
100.00
Evaluation On The Performance Of Audit Committee Of Selected Cooperatives In La Trinidad,
Benguet / Montes, April M, April 2011
23
Ratings of Audit Committee and Management
Staff on Personal Habits
Table 9 shows the of audit committee and management staff of cooperatives that
existed for five years and below and above five years on personal habits of the members
of audit committee. Twenty eight or 82.35% of the respondents of cooperatives that
existed below five years rated the members of their audit committee’s personal habits
satisfactory, same with the 70.97% of the respondents of the cooperatives that existed
above five years, which implies that the auditors comes in proper attire and grooming,
tone of voice and vocabulary according to culture in the workplace, while 17.65% of the
respondents of cooperatives that existed below five years rated the members of their audit
committee’s personal habits unsatisfactory, same with the 19.35% of the respondents of
the cooperatives that existed above five years, which implies that the auditors does
not consistently come in a proper attire and grooming, tone of voice and vocabulary
according to culture in the workplace were not consistently shown by the auditors. A
9.68% of the respondents of the cooperatives that existed above five years rated the
members of their audit committee unsatisfactory, which implies that their auditors did not
qualify the category of personal habits.
Table 9. Ratings of audit committee and management staff on personal habits
BELOW 5 YEARS
ABOVE 5 YEARS
FREQUENCY
FREQUENCY PERCENTAGE
FREQUENCY PERCENTAGE
Satisfactory
28
82.35
22
70.97
Needs
6
17.65
6
19.35
Improvement
Unsatisfactory
-
-
3
9.68
TOTAL
34
100.00
31
100.00
Evaluation On The Performance Of Audit Committee Of Selected Cooperatives In La Trinidad,
Benguet / Montes, April M, April 2011
24
Ratings of Audit Committee and Management
Staff on Language Proficiency
Table 10 shows the rating of audit committee and management staff of
cooperatives that existed for five years and below and above five years on language
proficiency of the members of the audit committee. Nineteen or 55.88% of the
respondents of cooperatives that existed below five years rated the members of their audit
committee’s language proficiency satisfactorily, same with the 83.87% of the respondents
of the cooperatives that existed above five years, which implies that the auditors spears,
reads and writes standard English in a business like way, while a 44.12% of the
respondents of cooperatives that existed below five years rated the members of their
audit committee’s language proficiency as needs improvement, same with the 83.87% of
the respondents of the cooperatives that existed above five years, which implies that their
auditors did not consistently show a proficiency in language. Three or 9.68% of the
respondents of the cooperatives that existed above five years rated the members of the
audit committee’s language proficiency unsatisfactory, which implies that the auditor s
does not show proficiency in language.
Table 10. Ratings of audit committee and management staff on language proficiency
BELOW 5 YEARS
ABOVE 5 YEARS
FREQUENCY
FREQUENCY PERCENTAGE FREQUENCY PERCENTAGE
Satisfactory
19
55.88
26
83.87
Needs
15
44.12
2
6.45
Improvement
Unsatisfactory
-
-
3
9.68
TOTAL
34
100.00
31
100.00
Evaluation On The Performance Of Audit Committee Of Selected Cooperatives In La Trinidad,
Benguet / Montes, April M, April 2011
25
Ratings of Audit Committee and Management
Staff on Attitude of Auditors
Table 11 shows the rating of audit committee and management staff of
cooperatives that existed for five years and below and above five years on the members
of audit committee’s attitude. Thirty three or 97.06% of the respondents of cooperatives
that existed below five years rated the members of their audit committee’s attitude
satisfactory, same with 83.87% of the respondents of the cooperatives that existed above
five years, which implies that the auditors keeps a positive and optimistic outlook despite
changes and is friendly with others, while 2.94% of the respondents of cooperatives that
existed below five years rated the members of their audit committee’s attitude as needs
improvement, same with the 6.45% of the respondents of the cooperatives that existed
above five years, which implies that the auditors did not consistently showed a positive
and optimistic outlook despite changes and being friendly with others. A 9.68% of the
respondents of cooperatives that existed below five years rated the members of their audit
committee’s attitude as unsatisfactory, which implies that the auditors did not show a
positive and optimistic outlook despite the changes.
Ratings of Audit Committee and Management
Staff on Initiative and Dependability
of Auditors
Table 12 shows the rating of audit committee and management staff of
cooperatives that existed for five years and below and above five years on the members
of audit committee’s on initiative and dependability of auditors.
Work independence. Twenty two or 64.71% of the respondents of cooperatives
that existed below five years rated the members of their audit committee’s independence
Evaluation On The Performance Of Audit Committee Of Selected Cooperatives In La Trinidad,
Benguet / Montes, April M, April 2011
26
Table 11. Ratings of audit committee and management staff on attitude of auditors
FREQUENCY
BELOW 5 YEARS
ABOVE 5 YEARS
FREQUENCY PERCENTAGE
FREQUENCY PERCENTAGE
Satisfactory
33
97.06
26
83.87
Needs
1
2.94
2
6.45
Improvement
Unsatisfactory
-
-
3
9.68
TOTAL
34
100.00
31
100.00
Table 12. Ratings of audit committee and management staff on initiative and
dependability of auditors
FREQUENCY
BELOW 5 YEARS
ABOVE 5 YEARS
FREQUENCY PERCENTAGE
FREQUENCY PERCENTAGE
Work independently, is self-directed
Satisfactory
22
64.71
19
61.29
Needs
12
35.29
9
29.03
Improvement
Unsatisfactory
-
-
3
9.68
TOTAL
34
100.00
31
100.00
Demonstrate proactive, positive and enthusiastic attitude and behavior
Satisfactory
21
61.76
21
67.64
Needs
13
38.24
7
22.58
improvement
Unsatisfactory
-
-
3
9.68
TOTAL
34
100.00
100.00
Consistently delivers a quality of work product that is detailed, accurate, reflective of the work
performed, and requires minimal work
Satisfactory
24
70.59
14
45.16
Needs
10
29.41
14
45.16
improvement
Unsatisfactory
3
9.68
TOTAL
34
100.00
31
100.00
Evaluation On The Performance Of Audit Committee Of Selected Cooperatives In La Trinidad,
Benguet / Montes, April M, April 2011
27
on their work satisfactory, same with the 61.29% of the respondents of the cooperatives
that existed above five years, which implies that their auditors are self directed or they
worked independently, while a 35.29% of the respondents of cooperatives that existed
below five years rated the members of their audit committee’s independence on their
work as needs improvement, same with 29.03% of the respondents of the cooperatives
that existed above five years, which implies that their auditors did not consistently
showed independence in their work. A 9.68% of the respondents of the cooperatives that
existed above five years rated their auditors unsatisfactory, this implies that their auditors
did not perform their work independently.
Demonstrates proactive, positive and enthusiastic attitude and behavior. The
61.76% of the respondents of cooperatives that existed below five years rated the
members of their audit committee’s proactive, positive and enthusiastic attitude and
behavior satisfactory, same with the 67.74% of the respondents of the cooperatives that
existed above five years, which implies that their auditors demonstrates a proactive,
positive and enthusiastic attitude and behavior, while a 38.24% of the respondents of
cooperatives that existed below five years rated the members of their audit committee’s
proactive, positive and enthusiastic attitude and behavior as needs improvement, same
with the 22.58% of the respondents of the cooperatives that existed above five years, this
implies that the auditors did not consistently demonstrate a proactive, positive and
enthusiastic attitude and behavior. Three or 9.68% of the respondents of the cooperatives
that existed above five years rated their auditors unsatisfactory, this implies that their
auditors did not demonstrate a proactive, positive and enthusiastic attitude and behavior.
Evaluation On The Performance Of Audit Committee Of Selected Cooperatives In La Trinidad,
Benguet / Montes, April M, April 2011
28
Consistence in delivery of a quality of work product. Twenty four or 70.59% of
the respondents of cooperatives that existed below five years rated the members of their
audit committee’s consistency in delivering a quality of work product that was detailed,
accurate, they reflect on the work that they performed, and requires minimal work
satisfactory, same with the 45.16% of the respondents of the cooperatives that existed
above five years, which implies that the auditors delivered a quality of work, while
29.41% of the respondents of cooperatives that existed below five years rated the
members of their audit committee’s consistency in delivering a quality of work product
that was detailed, accurate, they reflect on the work that they performed, and requires a
minimal work as needs improvement, same with the 45.16% of the respondents of the
cooperatives that existed above five years, which implies that the auditors did not
consistently delivered a quality of work. Three or 9.68% of the respondents of the
cooperatives that existed above five years rated their auditors unsatisfactory which
implies that their auditors did not deliver a quality of work.
This findings shows that the initiative and dependability of some audit committee
of those selected cooperatives were working independently, demonstrates a proactive,
positive, enthusiastic behavior and the auditors consistently delivered a quality of work
product. While others were not consistent in working independently, demonstrating a
proactive, positive, enthusiastic behavior and the auditors does not consistently deliver a
quality of work product. While the audit committee of some cooperatives were rated
unsatisfactory for not performing their function
Evaluation On The Performance Of Audit Committee Of Selected Cooperatives In La Trinidad,
Benguet / Montes, April M, April 2011
29
Ratings of Audit Committee and Management
Staff on Job Knowledge and Analytical/
Decision Making Skills
Table 13 shows the ratings of audit committee and management staff on job
knowledge and analytical/decision making skills of the audit committee.
Possesses the knowledge necessary to complete job tasks. Nineteen or 55.88%
of the respondents of cooperatives that existed below five years rated the members of the
audit committee if they possess the knowledge necessary to complete their job tasks
satisfactory, same with the 45.16% of the respondents of the cooperatives that existed
above five years, which indicates that their auditors have all the necessary knowledge to
complete their job task, while 44.12% of the respondents of cooperatives that existed
below five years rated the members of the audit committee if they possess the knowledge
necessary to complete their job tasks as needs improvement, same with the 41.94% of the
respondents of the cooperatives that existed above five years, which implies that their
auditors does not possess all the necessary knowledge to complete their job tasks which
requires more motivation and supervision to give the auditors all the necessary
knowledge to complete their job tasks. Three or 9.68% of the respondents of the
cooperatives that existed above five years rated their auditors unsatisfactory, which
implies that their auditors does not possess any knowledge to complete their job tasks.
Understands and adequately accomplish job duties and responsibilities. The table
shows the rating of respondents on the auditors if they understand and adequately
accomplish their job duties and responsibilities in which nineteen or 55.88% of the
respondents of cooperatives that existed below five years rated the members of the audit
committee with satisfactory and 51.61% of the respondents of the cooperatives that
Evaluation On The Performance Of Audit Committee Of Selected Cooperatives In La Trinidad,
Benguet / Montes, April M, April 2011
30
Table 13. Ratings of audit committee and management staff on job knowledge and
analytical/decision making skills
BELOW 5 YEARS
ABOVE 5 YEARS
FREQUENCY
FREQUENCY PERCENTAGE FREQUENCY PERCENTAGE
Possesses the knowledge necessary to complete job/task
Satisfactory
19
55.88
14
45.16
Needs
15
44.12
13
41.94
Improvement
Unsatisfactory
-
-
4
12.90
TOTAL
34
100.00
31
100.00
Understands and adequately accomplish job, duties and responsibilities
Satisfactory
19
55.88
16
51.61
Needs
15
44.12
12
38.71
improvement
Unsatisfactory
-
-
3
9.68
TOTAL
34
100.00
31
100.00
Analyzes fieldwork results to arrive at logical conclusions
Satisfactory
22
64.71
12
38.71
Needs
12
35.29
16
51.61
improvement
Unsatisfactory
-
-
3
9.68
TOTAL
34
100.00
31
100.00
Recognizes problems, identifies cause and makes potential recommendations
Satisfactory
25
73.53
18
58.06
Needs
9
26.47
10
32.26
improvement
Evaluation On The Performance Of Audit Committee Of Selected Cooperatives In La Trinidad,
Benguet / Montes, April M, April 2011
31
Table 13 Continued.
BELOW 5 YEARS
ABOVE 5 YEARS
FREQUENCY
FREQUENCY PERCENTAGE FREQUENCY PERCENTAGE
Satisfactory
25
73.53
18
58.06
Needs
9
26.47
10
32.26
improvement
Unsatisfactory
-
-
3
9.68
TOTAL
34
100.00
31
100.00
Explains the rationale behind decisions and recommendations as appropriate
Satisfactory
22
64.71
21
67.74
Needs
12
35.29
7
22.58
improvement
Unsatisfactory
-
-
3
9.68
TOTAL
34
100.00
31
100.00
existed above five years, which implies that the their audit committees fully understands
and adequately accomplish their job duties and responsibilities, while 44.12% of the
respondents of cooperatives that existed below five years and 38.71% of the respondents
of the cooperatives that existed above five years rated their auditors as needs
improvement, which implies that their auditors does not understand and adequately
accomplish some aspects on the job duties and responsibilities of the auditors. A 9.68%
of the respondents of the cooperatives that existed above five years rated their auditors
unsatisfactory, this implies that their auditors does not completely understand and
adequately accomplish their job duties and responsibilities.
Evaluation On The Performance Of Audit Committee Of Selected Cooperatives In La Trinidad,
Benguet / Montes, April M, April 2011
32
Analyzes fieldwork results to arrive at logical conclusions. The table shows the
rating of respondents on the auditors if they analyze their fieldwork results to arrive at a
logical conclusions in which 64.71% of the respondents of cooperatives that existed
below five years and 38.71% of the respondents of the cooperatives that existed above
five years rated their auditors satisfactory, which implies that their auditors were
analyzing their fieldwork results to arrive at a logical conclusion, while 35.29% of the
respondents of cooperatives that existed below five years and 51.61% of the respondents
of the cooperatives that existed above five years rated their auditors on this aspect as
needs improvement, taking a note on those cooperatives that existed below five years
comparing it with their respondents that rated their auditors satisfactory, which implies
that their auditors does not consistently arrives at a logical conclusion this needs an
improvement on analyzing capacity on the fieldwork results and to arrive into a more
logical conclusion. Three or 9.68% of the respondents of the cooperatives that existed
above five years rated their auditors unsatisfactorily, this implies that their auditors does
not arrive into logical conclusions in which a high degree of improvement and
supervision on the auditors is needed to arrive on a logical conclusion.
Recognizes problems, identifies cause and makes potential recommendations.
The table shows the ratings of the respondents on the auditors’ capacity to recognize
problems, identify the causes of it and their ability to make potential recommendations.
Twenty five or 73.53% of the respondents of cooperatives that existed below five years
and 58.06% of the respondents of the cooperatives that existed above five years rated
their auditors satisfactory, which implies that their auditors has the capacity to recognize
problems, identify the causes of those problems and they have the ability to make
Evaluation On The Performance Of Audit Committee Of Selected Cooperatives In La Trinidad,
Benguet / Montes, April M, April 2011
33
recommendations to solve the problem. While 26.47% of the respondents of cooperatives
that existed below five years and a 32.26% of the respondents of the cooperatives that
existed above five years rated their auditors on this aspect as needs improvement, which
implies that the consistency of their ability to recognize problems, identifying its causes
and their ability to make recommendations is not consistent. Three or 9.68% of the
respondents of the cooperatives that existed above five years rated their auditors
unsatisfactory, this implies that their auditors does not have the ability to recognize
problems and identify its causes and does not give recommendations.
Explains the rationale behind decisions and recommendations as appropriate. The
table shows if the auditors explain the rationale behind decisions and recommendations
they produce. Twenty two or 64.71% of the respondents of cooperatives that existed
below five years and a 67.74% of the respondents of the cooperatives that existed above
five years rated their auditors satisfactory, which implies that their auditors were
explaining their justifications on why they come up with those decisions and
recommendations they were producing. While the 35.29% of the respondents of
cooperatives that existed below five years and 22.58% of the respondents of the
cooperatives that existed above five years rated their auditors on this aspect as needs
improvement, which implies that the auditors are not consistently explaining their reasons
in coming up with their decisions and recommendations, and 9.68% of the respondents of
the cooperatives that existed above five years rated their auditors unsatisfactory, this
implies that their auditors does not explain their reasons or justification on the decisions
and recommendations they were producing.
Evaluation On The Performance Of Audit Committee Of Selected Cooperatives In La Trinidad,
Benguet / Montes, April M, April 2011
34
Ratings of Audit Committee and Management
Staff on Communication Skills
and Interpersonal Relations
Table 14 shows the ratings of the respondents on the communication skills and
interpersonal relations of the members of the audit committee.
Oral communications are clear and spoken with ease. The table shows the ratings
of the respondents if the oral communications are clear and spoken with ease. Twenty
five or 73.53% of the respondents of cooperatives that existed below five years and
77.42% of the respondents of the cooperatives that existed above five years rated their
auditors satisfactory which implies that their auditors were clearly speaking and speaking
with ease. While the 26.47% of the respondents of cooperatives that existed below five
years and a 12.90% of the respondents of the cooperatives that existed above five years
rated their auditors on this aspect as needs improvement, which implies that the auditors
are not consistently speaking clearly and speaking with ease. Three or 9.68% of the
respondents of the cooperatives that existed above five years rated their auditors
unsatisfactory, this implies that their auditors were not clearly speaking and speaking
with ease.
Written communications are logical and well organized. The table shows the
rating of respondents on the way the communications are written and if these are logical
and well organized. Twenty six or 76.47% of the respondents of cooperatives that existed
below five years and 67.74% of the respondents of the cooperatives that existed above
five years rated their auditors satisfactory which implies that their auditors were writing
their communications logically and were well organized. While 23.53% of the
respondents of cooperatives that existed below five years and 9.35% of the
Evaluation On The Performance Of Audit Committee Of Selected Cooperatives In La Trinidad,
Benguet / Montes, April M, April 2011
35
Table 14. Ratings of audit committee and management staff on communication skills and
interpersonal relations
BELOW 5 YEARS
ABOVE 5 YEARS
FREQUENCY
FREQUENCY PERCENTAGE FREQUENCY PERCENTAGE
Oral communications are clear and spoken with ease
Satisfactory
25
73.53
24
77.42
Needs
29
26.47
4
12.90
Improvement
Unsatisfactory
-
-
3
9.68
TOTAL
34
100.00
31
100.00
Written communications are logical and well organized
Satisfactory
26
76.47
21
67.74
Needs
8
23.53
6
19.35
improvement
Unsatisfactory
-
-
4
12.90
TOTAL
34
100.00
31
100.00
Communications with confidence while treating others with respect, courtesy and
fairness
Satisfactory
26
76.47
23
74.19
Needs
8
23.53
5
16.13
improvement
Unsatisfactory
34
9.68
TOTAL
34
100.00
31
100.00
Listen effectively, respond clearly and directly, and seeks to clarify and confirm the
accuracy of their understanding or unfamiliar of vague terms
Satisfactory
26
76.47
18
58.06
Evaluation On The Performance Of Audit Committee Of Selected Cooperatives In La Trinidad,
Benguet / Montes, April M, April 2011
36
Table 14. Continued.
BELOW 5 YEARS
ABOVE 5 YEARS
FREQUENCY
FREQUENCY PERCENTAGE FREQUENCY PERCENTAGE
Needs
8
23.53
10
32.26
improvement
Unsatisfactory
-
-
3
9.68
TOTAL
34
100.00
31
100.00
Contributes to the Cooperative and develops positive working relationship
Satisfactory
29
85.29
20
64.52
Needs
5
14.71
8
25.81
improvement
Unsatisfactory
-
-
3
9.68
TOTAL
34
100.00
31
100.00
respondents of the cooperatives that existed above five years rated their auditors on this
aspect as needs improvement, this implies that their auditors were not consistent in
writing their communications logically and this were not well organized. Three or 9.68%
of the respondents of the cooperatives that existed above five years rated their auditors
unsatisfactory, this implies that their auditors did not write communications logically
and these are not well organized.
Communicates with confidence while treating others with respect, courtesy, and
fairness. The table shows the rating of respondents on the way the auditors were
communicating. Twenty six or 76.47% of the respondents of cooperatives that existed
below five years and 58.06% of the respondents of the cooperatives that existed above
five years rated their auditors satisfactory, this implies that their auditors were
Evaluation On The Performance Of Audit Committee Of Selected Cooperatives In La Trinidad,
Benguet / Montes, April M, April 2011
37
communicating with confidence while treating others with respect, courtesy, and fairness.
While 23.53% of the respondents of cooperatives that existed below five years and
16.13% of the respondents of the cooperatives that existed above five years rated their
auditors on this aspect as needs improvement, this implies that the auditors were not
consistent in communicating with confidence while treating others with respect, courtesy,
and fairness. Three or 9.68% of the respondents of the cooperatives that existed above
five years rated their auditors unsatisfactory. This implies that their auditors did not
communicate with confidence while treating others with respect, courtesy, and fairness.
Listens effectively, respond clearly and directly, and seeks to clarify and confirm
the accuracy of their understanding or unfamiliar of vague terms. The table shows that
the rating of respondents on the auditors effective listening, direct and clear respond and
to the auditors explanation on the accuracy of their understanding and even on the
clarification on vague terms. Twenty six or 76.47% of the respondents of cooperatives
that existed below five years and a 58.06% of the respondents of the cooperatives that
existed above five years rated their auditors satisfactory, this implies that the auditors
listens effectively, respond directly and clearly and seeks to clarify the accuracy of their
understanding on unfamiliar or vague terms. While 23.53% of the respondents of
cooperatives that existed below five years and 32.26% of the respondents of the
cooperatives that existed above five years rated their auditors on this aspect as needs
improvement, this implies that the auditors were not consistent in listening effectively,
responding clearly and directly, and in seeking to clarify and confirm the accuracy of
their understanding on unfamiliar or vague. Three or 9.68% of the respondents of the
cooperatives that existed above five years rated their auditors unsatisfactory. This implies
Evaluation On The Performance Of Audit Committee Of Selected Cooperatives In La Trinidad,
Benguet / Montes, April M, April 2011
38
that the auditors did not listen effectively, respond clearly and directly and did not seek to
clarify and confirm the accuracy of their understanding on unfamiliar or vague terms.
Contributes to the Co-operative and develops positive working relationships.
This shows the rating of the respondents on the capacity of the auditors to contribute to
the cooperative and on their development of a positive relation on their work. Twenty six
or 76.47% of the respondents of cooperatives that existed below five years and 58.06%
of the respondents of the cooperatives that existed above five years rated their auditors
satisfactory, this implies that the auditors were contributing to the cooperative and
develops positive working relationship. While the 85.29% of the respondents of
cooperatives that existed below five years and 64.52% of the respondents of the
cooperatives that existed above five years rated their auditors on this aspect as needs
improvement, this implies that their auditors did not consistently contribute to the
cooperative and developed a positive working relationship, and a 9.68% of the
respondents of the cooperatives that existed above five years rated their auditors
unsatisfactory. This implies that their auditors did not contribute anything to the
cooperative and they did not develop a positive working relationship.
Ratings of Audit Committee and Management
Staff on the Overall Level of Performance
of Audit Committee
Table 15 shows the rating of the respondents on the overall level of performance
of audit committee. Twenty two or 64.71% of the respondents of cooperatives that
existed below five years and a 51.61% of the respondents of the cooperatives that existed
above five years rated their auditors satisfactorily. This implies that the auditors
Evaluation On The Performance Of Audit Committee Of Selected Cooperatives In La Trinidad,
Benguet / Montes, April M, April 2011
39
Table 15. Ratings of audit committee and management staff on the level of performance
of audit committee
BELOW 5 YEARS
ABOVE 5 YEARS
PARTICULAR
FREQUENCY PERCENTAGE FREQUENCY PERCENTAGE
Satisfactory
22
64.71
16
51.61
Needs
11
32.35
8
25.81
Improvement
Unsatisfactory
1
2.94
7
22.58
TOTAL
34
100.00
31
100.00
consistently meet all job requirements and the expectations of the auditors and
expectations from them. While 32.35% of the respondents of cooperatives that existed
below five years and 25.81% of the respondents of the cooperatives that existed above
five years rated their auditors on this aspect as needs improvement. This implies that their
auditors did not consistently meet all the job requirements and the expectations of the
auditors and expectations from them. A 22.58% of the respondents of the cooperatives
that existed above five years rated their auditors unsatisfactory; this implies that their
auditors did not meet all job requirements and all expectations of the auditors and
expectations from them.
Value Added by the Audit Committee
Table 16 shows the value added by the audit committee. This shows the
helpfulness of the audit committee to the cooperative. Sixteen or 47.06% of the
respondents of those cooperatives that existed five years and below observed that the
audit committee is helpful in correcting errors, this implies that the most of the
Evaluation On The Performance Of Audit Committee Of Selected Cooperatives In La Trinidad,
Benguet / Montes, April M, April 2011
40
expectation of the respondents is to correct errors; while the majority (19.35%) of the
respondents from those cooperative that existed beyond five years observed that their
audit committee were helpful in making policy and evaluating its implementation for
building up a better internal control. This implies that expectation of the respondents to
their audit committee is to build up a strong internal control by making policies and
evaluating the implementation of the policies.
Table 16. Value added by the audit committee
CHARACTERISTICS
FREQUENCY PERCENTAGE
5 and below
They determine errors
16
47.06
The Board of directors are able to make wise
decisions regarding implementation of the
rules and regulations as well as the proper
attitude of members towards the cooperative
5
14.71
They give suggestions on other committees like
the credit committee on how to handle, process
and assess loan applications
5
14.71
They guide the management personnel on how
to allocate funds.
4
11.76
They serve as deterrent to coop personnel learn
and accept their mistakes
2
5.88
They help in achieving the goals of the
cooperative
1
2.94
They determine problems in the operation of
the business and gives recommendations not
only to operations but also in giving
recommendations to other committees for
1
2.94
further improvement
TOTAL
34
100.00
Evaluation On The Performance Of Audit Committee Of Selected Cooperatives In La Trinidad,
Benguet / Montes, April M, April 2011
41
Table 16. Continued.
CHARACTERISTICS
FREQUENCY PERCENTAGE
Above five years
They suggest other business ventures
2
6.45
They give suggestions taking into consideration
on the current situation of the Cooperative
3
9.68
Helps in aid of legislation, policy making for
strong internal control.
6
19.35
They make the management accurate in its
performance/work
1
3.23
They asses the implementation of the manual of
operation of the Cooperative
6
19.35
They monitor the delinquency rate, collection
rate liquidity rate coupled with their
recommendations to the management and to the
Board of directors
1
3.23
Their recommendations are used in decision
making of the Board of directors and
management in such a way that their
recommendations turns to be a resolution
4
12.90
They examine not only the financial aspect but
even non financial aspects like management,
implementation of policies
1
3.23
The audit committee being evaluated does not
function
3
9.68
Evaluation On The Performance Of Audit Committee Of Selected Cooperatives In La Trinidad,
Benguet / Montes, April M, April 2011
42
SUMMARY, CONCLUSIONS AND RECOMMENDATIONS
Summary
The study aims to evaluate the performance of the audit committee of selected
cooperatives in La Trinidad, Benguet. The study focused on the timeliness, reliability,
and accuracy of audit findings, and even on the value added by the audit committee. It
also looked on to teamwork, confidence, personal habits, language proficiency and
attitude of the audit committee. It also looked into the initiative, dependability, job
knowledge, decision making skills and interpersonal relations as well this study this study
focused on the frequency of auditing and the reason for practicing such frequency.
The auditor committee and management staff of the cooperatives that existed five
years and below and above five years were the respondents. The data were gathered
through the survey questionnaire and through interview. In the study it has been observed
that some of the cooperatives do not have a functional audit committee.
The reliability and accuracy of the audit findings of selected cooperatives of either
category were satisfactory. In the study it has been observed that some of the
cooperatives do not have a functional audit committee. It has also been observed that
most of the cooperatives were conducting their audit monthly and quarterly.
It was observed that some of the cooperatives do not have a functional audit
committee that is why they rated their audit committees as needs improvement and same
with the auditors they rated themselves as unsatisfactory for not functioning. Some of the
audit committees of the cooperatives do not want to undergo, into self evaluation by this
situation a change on respondents on that cooperative, instead the board of directors rated
the auditors.
Evaluation On The Performance Of Audit Committee Of Selected Cooperatives In La Trinidad,
Benguet / Montes, April M, April 2011
43
The value added by the audit committee on their cooperative gives much
emphasis on the ability of the recommendations to help the cooperative identify its
problems and by making remedies on the problems. The traditional overview on the
committees function on correcting errors is still seen as their main function of the
respondents from the cooperatives that existed five years and below, while those that
existed beyond five year looks at the function of the audit committee as developing
policies and evaluating those policies to build up a strong internal control.
Conclusions
The following conclusions were developed base on the results of this study.
1. Majority of the audit committee and management staff are at the age of 41 to
50.
2. Majority of the cooperatives are conducting their internal audit monthly and
quarterly.
3. Majority of the cooperatives are practicing such frequency because it was
stated in their by-laws.
4. The timeliness, reliability and accuracy of audit findings of the majority of
both cooperatives in either category are consistently produced.
5. On the teamwork, confidence, personal habits, language proficiency, and
attitude of the audit committee, majority of the selected cooperatives’ auditors are
consistent in sharing responsibilities, learning from their experience and absorbs
criticisms, they come in proper attire and speaks according to culture in the workplace,
the auditors can speak, read and write in English, and are friendly with others. Some
auditors are not consistent in maintaining this kind of characteristics.
Evaluation On The Performance Of Audit Committee Of Selected Cooperatives In La Trinidad,
Benguet / Montes, April M, April 2011
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6. On the initiative and dependability of auditors of selected cooperatives on
both category majority of the audit committee works independently, demonstrate
enthusiastic behavior, and the auditors consistently delivers a quality of work.
7. On the job knowledge and decision making skills of selected cooperatives’
audit committee on both category possesses the necessary knowledge to complete job
tasks, understand and adequately accomplish their job duties and responsibilities,
analyzes fieldwork results to arrive at logical conclusions but on this aspect the auditors
of the cooperatives that existed beyond five years were not consistent in this aspect, the
auditors identify problems and its causes to come up with recommendations and this
recommendations further explains the rationale behind those recommendations.
8. On the communication skills and interpersonal relations of selected
cooperatives’ audit committee on both category auditors speaks clearly and with ease,
write logically and well organized and communicate with confidence while treating
others with respect, listens effectively and explain some unfamiliar words.
Recommendations
1. The value being added by the audit committee is merely seen to correct errors.
This should not be seen as the function of the audit committee.
2. The cooperatives should be providing trainings to the audit committee to
educate them about their function. Educating the committee is just a half way on their
trainings. The cooperatives should also develop the committee’s personality towards their
work.
3. On the cooperatives whose internal audit is separated from the audit
committee. Their audit committee tends to totally depend on the internal audit, this
Evaluation On The Performance Of Audit Committee Of Selected Cooperatives In La Trinidad,
Benguet / Montes, April M, April 2011
45
should not be the case it is recommended that the internal audit is joined with the audit
committee to lead the committee.
4. A frequent evaluation on the performance of the committees could help the
cooperative know the needs of their committee. This will help the cooperative motivate
their committee.
Evaluation On The Performance Of Audit Committee Of Selected Cooperatives In La Trinidad,
Benguet / Montes, April M, April 2011
46
LITERATURE CITED
ANONYMOUS. 2007. Audit Committee vs. Effective Audit the Difference Counts.
Retrieved July 24, 2010 from http:// cpcaf.aicpa.org/resources/sabarnes/oxley
COOPERATIVE DEVELOPMENT AUTHORITY. 2010. Philippine Cooperative Code
of 2008 With Its Implementing Rules and Regulations. Cooperative Development
Authority. P. 70.
DOUGLAS, Z. E. 2009. Internal Auditor. Retrieved July 24, 2010 from
http://www.metricstream.com/insights/audit_performance_measurement
LAND BANK OF THE PHILIPPINES. 2006. Seminar-Workshop on Coop Audit
Process and Internal Control Assessment. Land Bank of the Philippines. Pp 1-2.
LE PANNE, S. 2006. What is Auditing. Rhode Island Board of Governors for Higher
Education. Retrieved July 24, 2010 from www.ribghe.org.
MC CUIAG, B. 2009. Internal Audit Performance: Thoughts on What to Audit and How
to Audit It. Retrieved July 24, 2010 from http:// www.inside-
grc.com/2009/10/07/internal audit performance
NATIONAL CONFEDERATION OF COOPERATIVES NORTHERN LUZON, 2002.
Accountants’ forum seminar manual. National Confederation of Cooperatives
Northern Luzon, Chapter 3. P1.
TIMOTHY J. F. and KALBERS, L. P. 1993. Internal Auditor Performance: A
Comparison of Self Rating and Supervisory Rating. Retrieved July 24, 2010
from http:// www.emerald insight.com/10/08/eb017609
TRIPURA COOPERATIVE. 2004. Audit Manual. Retrieved July 24, 2010 from http://
www.osufacts.okstale.edu
Evaluation On The Performance Of Audit Committee Of Selected Cooperatives In La Trinidad,
Benguet / Montes, April M, April 2011
47
APPENDIX A
Letter to the Respondents
College of Agriculture
DEPARTMENT OF AGRICULTURAL ECONOMICS AND
AGRIBUSINESS MANAGEMENT
Benguet State University
La Trinidad, Benguet
November 2010
_________________________
_________________________
_________________________
Sir/Madam;
I am April M. Montes, a student of Benguet State University, taking up Bachelor of
Science in Agribusiness major in Cooperative Management. I am presently conducting a
research titled “ EVALUATION ON THE PERFORMANCE OF AUDIT COMMITTEE
IN LA TRINIDAD, BENGUET” as a partial requirement of my course.
In this connection, may I request a portion of your precious time in a scheduled basis to
answer some questions that will help in the accomplishment of the research work and
please give your honest answers to the questions. Rest assured that all information
provided will be treated with utmost confidentiality.
Thank you very much for sharing me a part of your precious time. God Bless and more
power!
Sincerely yours,
APRIL M. MONTES
Evaluation On The Performance Of Audit Committee Of Selected Cooperatives In La Trinidad,
Benguet / Montes, April M, April 2011
48
APPENDIX B
Survey Questionnaire
I. General Information
1. Name of Cooperative:
2. Type of Cooperative:
( )Multi-purpose
( )Savings and Credit
( )Consumers
( )Marketing
( )Services
( )Others specify
3. Name:(optional)
Age:
Gender:
4. Position:
Number of years in the Co-operative:
5. Civil Status:
( ) Single
( ) Married
( ) Widow
( ) others (pls. specify)
6. Educational Attainment:
( ) Elementary
( ) High school
( ) College
( ) Others (pls. specify)
II. Policies and Practices in Auditing
1. Frequency of Auditing?
( ) Daily
Evaluation On The Performance Of Audit Committee Of Selected Cooperatives In La Trinidad,
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49
( ) Weekly
( ) Monthly
( ) Quarterly
( ) Semi – annually
( ) Annually
2. Reason for practicing such frequency?
( ) It is stated in the by laws
( ) Others (pls. specify)
III. Auditor Performance Evaluation
Ratings
(S) Satisfactory – Performance consistently meets the job requirements and expectations
of the auditors position in all aspects.
(NI) Needs Improvement – Performance meets most essential job requirements, however,
work is not consistent requires revision and some degree of supervision.
(UN) Unsatisfactory – Performance does not meet minimum requirements frequent
revision and high degree of supervision and direction
Auditor Performance Evaluation
Criteria
S
NI
UN
A. General Questions
1. Timeliness of Audit
Comments:
2. Reliability of audit findings during the audit.
Comments:
3. Accuracy of audit findings.
Evaluation On The Performance Of Audit Committee Of Selected Cooperatives In La Trinidad,
Benguet / Montes, April M, April 2011
50
Comments:
4. Team work – The Auditors share responsibilities, confers with
others, honor commitments, helps others do their jobs, and seeks
helps when needed
Comments:
S
NI
UN
5. Confidence – The Auditors learns from experience, ask
questions and corrects mistakes and absorbs criticism and
direction without feeling defeated, resentful or insulted.
Comments:
6. Personal Habits – The Auditors comes in proper attire and
grooming, tone of voice and vocabulary according to culture in
the workplace.
Comments:
7. Language Proficiency – The Auditors speaks, reads and writes
standard English in a business like way.
Comments:
8. Attitude – The Auditors keeps a positive and optimistic outlook
despite changes, is friendly with others.
Comments:
Evaluation On The Performance Of Audit Committee Of Selected Cooperatives In La Trinidad,
Benguet / Montes, April M, April 2011
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B. Initiative and Dependability of Auditors
S
NI
UN
1. Works independently, is self – directed.
Comments:
2. Demonstrates proactive, positive and enthusiastic attitude and
behavior.
Comments:
3. Consistently delivers a quality of work product that is
detailed, accurate, reflective of the work performed, and requires
minimal work.
Comments:
C. Job Knowledge and analytical/Decision Making Skills
S
NI
UN
1. Possesses the knowledge necessary to complete job tasks.
Comments:
2. Understands and adequately accomplish job duties and
responsibilities.
Comments:
3. Analyzes fieldwork results to arrive at logical conclusions.
Comments:
Evaluation On The Performance Of Audit Committee Of Selected Cooperatives In La Trinidad,
Benguet / Montes, April M, April 2011
52
4. Recognizes problems, identifies cause and makes potential
recommendations.
Comments:
5. Explains the rationale behind decisions and recommendations
as appropriate.
Comments:
D. Communication Skills and Interpersonal Relations
S
NI
UN
1. Oral communications are clear and spoken with ease.
Comments:
2. Written communications are logical and well organized.
Comments:
3. Communications with confidence while treating others while
treating others with respect, courtesy, and fairness.
Comments:
4. Listens effectively, respond clearly and directly, and seeks to
clarify and confirm the accuracy of their understanding or
unfamiliar of vague terms.
Comments:
Evaluation On The Performance Of Audit Committee Of Selected Cooperatives In La Trinidad,
Benguet / Montes, April M, April 2011
53
5. Contributes to the Co-operative and develops positive working
relationships.
Comments:
E. Over all Level of Performance of Audit Committee.
S
NI
UN
F. Value Added by the Audit Committee
_____________________________________________________________
_____________
Evaluation On The Performance Of Audit Committee Of Selected Cooperatives In La Trinidad,
Benguet / Montes, April M, April 2011
Document Outline
- Evaluation on the Performance of Audit Committeeof Selected Cooperatives in La Trinidad, Benguet
- BIBLIOGRAPHY
- ABSTRACT
- INTRODUCTION
- REVIEW OF LITERATURE
- METHODOLOGY
- RESULTS AND DISCUSSION
- SUMMARY, CONCLUSIONS AND RECOMMENDATIONS
- LITERATURE CITED
- APPENDICES