Can COA audit private entities?

Under Section 29 of PD 1445, COA shall have visitorial authority over non-government entities subsidized by the government, those required to pay levies or government share, and those which have received counterpart funds from the government or are partly funded by donations through the government. The said authority however pertains only to the audit of those funds or subsidies coming from or through the government.

Furthermore, Section 38 of the same PD authorizes the Commission to examine and audit books, records, and accounts of public utilities in connection with the fixing rates of every nature, or in relation to the proceedings of the proper regulatory agencies, for purposes of determining franchise taxes. During the examination and audit, the public utility concerned shall produce all the reports, records, books of accounts and such other papers as may be required. The Commission shall have the power to examine under oath any official or employee of said public utility. Any public utility refusing to allow an examination and audit of its books of accounts and pertinent records, or offering unnecessary obstruction to the examination and audit, or found guilty of concealing any material information concerning its financial status shall be subject to the penalties provided by law.

(Sections 29 and 38 of PD 1445)

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