Justine Y.

Tuazon
Certified Public Accountant
#416 PulongMaliit, Concepcion, San Simon, Pampanga
The Board of Directors
Philippine Deposit Insurance Corporation
Makati City

Contact No.: 09063207430

Report on the Financial Statements

I have audited the accompanying financial statements of Philippine Deposit Insurance
Corporation, which comprise the statement of financial position as at December 31, 2015, and
the statement of comprehensive income, statement of changes in deposit insurance fund and
statement of cash flows for the year then ended, and a summary of significant accounting
policies and other explanatory information.
Managements Responsibility for the Financial Statements
Management is responsible for the preparation and fair presentation of these financial
statements in accordance with Philippine Financial Reporting Standards, and for such internal
control as management determines is necessary to enable the preparation of financial statements
that are free from material misstatement, whether due to fraud or error.
Auditors Responsibility
My responsibility is to express an opinion on these financial statements based on my
audit. I conducted my audit in accordance with Philippine Standards on Auditing. Those
standards require that I comply with ethical requirements and plan and perform the audit to
obtain reasonable assurance about whether the financial statements are free from material
misstatement.
My audit involves performing procedures to obtain audit evidence about the amounts and
disclosures in the financial statements. The procedures selected depend on my judgment,
including the assessment of the risks of material misstatement of the financial statements,
whether due to fraud or error. In making those risk assessments, I am considering internal control
relevant to the entitys preparation and fair presentation of the financial statements in order to
design audit procedures that are appropriate in the circumstances, but not for the purpose of
expressing an opinion on the effectiveness of the entitys internal control. My audit also includes
evaluating the appropriateness of accounting policies used and the reasonableness of accounting
estimates made by management, as well as evaluating the overall presentation of the financial
statements.

I believe that the audit evidence we have obtained is sufficient and appropriate to provide
a basis for my qualified audit opinion.
Basis for Qualified Opinion
As discussed in item no. 1 of Part II A of the audit report, the impairment loss on the
Corporations P12 billion investment with a sequestered bank was not recognized in the 2013
and 2014 financial statements. In the 2015 financial statements, Management sill maintained its
position not to recognize impairment loss amounting to P9.236 billion, which constitutes a
departure from Philippine Accounting Standards 39. Had the impairment loss been recognized by
the Corporation, total expenses would have been increased by P9.236 billion and net income for
the year would have been reduced by the same amount.
Qualified Opinion
In my opinion, except for the effects of the matter described in the Basis for Qualified
Opinion, the financial statements present fairly, in all material respects, the financial position of
Philippine Deposit Insurance Corporation as at December 31, 2015, and its financial
performance and its cash flows for the year then ended in accordance with Philippine Financial
Reporting Standards.
April 15, 2016
Certified Public
B.d. Cert. no.
Accountant
155698
Justine Y.
Tuazon

Justine Y. Tuazon
B.d. Cert. no. 155698
P.T.R. #121072
Date of Issue: 1/30/2016
Place of Issue: Baliuag, Bulacan
T.I.N. 0906327
SEC Accreditation No. 0466-AR-3(Group A)
February 9, 2016, valid until February 8,
2019
BIR Accreditation No. 08-0019986-61-2015
February 27, 2015, valid until February 26,
2018