EXPLAINER: What is an 'audit query' and how is it different from an audit observation memorandum?

The term ‘audit query’ has figured prominently in the impeachment trial of Vice President Sara Duterte, after a state auditor testified that officials of the Department of Education (DepEd) and the Office of the Vice President (OVP) asked the Commission on Audit (COA) to issue one instead of an audit observation memorandum (AOM).

The COA describes an audit query memorandum (AQM) as an issuance by state auditors to their respective auditees to document their queries relative to their audit.

“It is aimed to answer questions that may either lead to a clarification or may lead to the issuance of an Audit Observation Memorandum or other appropriate notices,” the COA said on its official website.

In simpler terms, an audit query indicates that state auditors have questions, and auditees are asked to explain or provide more information.

What is the connection to the Duterte case?

Former state auditor Roderick Wamil testified that in 2023, representatives of the OVP and the DepEd allegedly requested that the COA issue an “audit query” instead of an audit observation memorandum for the agencies’ disbursement of confidential funds. Duterte was serving as DepEd secretary at the time.

Wamil said officials present at the meeting included OVP chief of staff lawyer Zuleika Lopez; lawyer Michael Poa, then DepEd chief of staff and spokesperson; COA Assistant Commissioner and Intelligence and Confidential Funds Audit Office (ICFAO) head Nilda Plaras; and ICFAO official Gloria Camora.

Wamil said the COA rejected the request, and the ICFAO did not agree to it since it was not sanctioned by Joint Circular 2015-01.

Poa later confirmed that he remembered attending a meeting, but did not specifically remember making the request, adding that the proposal was made under the impression that an audit query could first be issued to clarify issues, and that an AOM could follow if the explanation was insufficient.

What is an AOM?

The COA defines an AOM as a “written notification to the agency head and concerned officer/s informing of the deficiencies noted in the audit of accounts, operations or transactions and requiring comments thereto and/or submission of documentary and other information and requirements within a reasonable period.”

While an audit query raises questions and seeks clarification, an AOM communicates audit observations and is used to obtain a formal response from the agency.

Duterte is facing impeachment raps over allegations involving the misuse of government funds, unexplained wealth, bribery, and threats against President Ferdinand “Bongbong” Marcos Jr. and other officials. — RSJ, GMA News