VICENTE, LICAYCAY, AND CAYSIP COMPANY

VLC
VICENTE, LICAYCAY AND CAYSIP COMPANY
PROFESSIONAL SERVICES | TAX, AUDIT AND ADVISORY SERVICES
EST. 2018

INDEPENDENT AUDITORS’ REPORT

THE CBA PROFESSORS

College of Business Administration Department
Wesleyan University – Philippines
Cabanatuan City

Scope and Objectives of Audit:

The scope of this audit shall include the following:

 To determine the number of the members of the group if it has not violated the six members
per group limit.
 To verify the management’s claim that the initial capital is one thousand pesos or above.
 To evaluate their means of product packaging & handling, garbage disposal, proper signage
of the store, and price lists of the product.
 To express an opinion whether the FS are prepared in all material respects in accordance with
the Generally Accepted Accounting Principles.

We, the auditors, shall observe the effectiveness and efficiency of their operations as well as the
accuracy of their financial statements

Audit Findings

 The number of sold turon shown on the sales receipts only shows 29 pieces, but the number of
finished product is 30 pieces. The team failed to recognize any loss regarding to this matter.
 The team sold a total number of 41 cups of buko juice, which is higher to their expected sale
of 39 cups used in order to determine the selling price of the said product.
 The team sold one cup buko juice for Php8.00, which is 2 pesos lower that the normal selling
price. They recognized the 2 pesos loss as additional cost of the product.
 Some receipts did not show the correct total amount when the amount of each items are
added. Due to this, the total receipts showed a 2 pesos shortage and was also added to the
cost of the product.

vlc.company@gmail.com vlc_official 0920-266-6648 www.vlc.company.com

2
 VLC
VICENTE, LICAYCAY AND CAYSIP COMPANY
PROFESSIONAL SERVICES | TAX, AUDIT AND ADVISORY SERVICES
EST. 2018

 There are numerous alterations found on the receipts without any proper signature or other
form of evidence to show the authority to alter.
 The income statement shows a balance of Php750.00while the total receipts sales shows only
Php746.00, where they added the loss of 4 pesos, which were previously discussed, to the cost
of the product.
 The team also recognized the said 4 pesos loss as a deduction to the gross profit as loss on
sales.
 The ending owner’s equity is also affected to the error made on recognition of the loss.
 The business followed the product packaging & handling, garbage disposal control, proper
signage of the store, and price list of the products.

Opinion

We have audited the financial statements of AVVR Food Partnership, which comprise the Income
Statement of October 25, 2018 and the Owner’s Equity for the period ended.

In our opinion, the accompanying financial statements do not present fairly, in all material respects,
the income statement of AVVR Food Partnershipon October 25, 2018, and of statement of owner’s
equity for the period then ended and their operations are not in accordance with the rules set by
their adviser.

Basis for Opinion

We conducted our audits in accordance with Philippine Standards on Auditing (PSAs). Our
responsibilities under those standards are further described in the Auditor’s Responsibilities for the
Audit of the Financial Statements section of our report. We are independent of the Corporation in
accordance with the Code of Ethics for Professional Accountants in the Philippines, and we have
fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the
audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Responsibilities of Management and Those Charged with Governance for the Financial Statements

Management is responsible for the preparation and fair presentation of the financial statements in
accordance with the Philippine Financial Reporting Standards, and for such internal control as

vlc.company@gmail.com vlc_official 0920-266-6648 www.vlc.company.com

3
 VLC
VICENTE, LICAYCAY AND CAYSIP COMPANY
PROFESSIONAL SERVICES | TAX, AUDIT AND ADVISORY SERVICES
EST. 2018

management determines is necessary to enable the preparation of financial statements that are free
from material misstatement, whether due to fraud or error.

Those charged with governance are responsible for overseeing the Corporation’s financial reporting
process.

Auditor’s Responsibilities for the Audit of the Financial Statements

Our objectives are to obtain reasonable assurance about whether the financial statements as a
whole are free from material misstatement, whether due to fraud or error, and to issue an auditor’s
report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a
guarantee that an audit conducted in accordance with PSAs will always detect a material
misstatement when it exists. Misstatements can arise from fraud or error and are considered material
if, individually or in the aggregate, they could reasonably be expected to influence the economic
decisions of users taken on the basis of these financial statements.

As part of an audit in accordance with PSAs, we exercise professional judgment and maintain
professional skepticism throughout the audit. We also:

Identify and assess the risks of material misstatement of the financial statements, whether due to
fraud or error, design and perform audit procedures responsive to those risks, and obtain audit
evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting
a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may
involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.

Obtain an understanding of internal control relevant to the audit 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 Corporation’s internal control.

We communicate with those charged with governance regarding, among other matters, the
planned scope and timing of the audit and significant audit findings, including any significant
deficiencies in internal control that we identify during our audit.

vlc.company@gmail.com vlc_official 0920-266-6648 www.vlc.company.com

4
 VLC
VICENTE, LICAYCAY AND CAYSIP COMPANY
PROFESSIONAL SERVICES | TAX, AUDIT AND ADVISORY SERVICES
EST. 2018

Auditors:

Don Joshua M. Caysip, CPA

Kristan M. Licaycay, CPA

Reil Mark S. Vicente, CPA

Address: Cabanatuan City, Nueva Ecija

Date: November 26, 2018

vlc.company@gmail.com vlc_official 0920-266-6648 www.vlc.company.com

5
 VLC
VICENTE, LICAYCAY AND CAYSIP COMPANY
PROFESSIONAL SERVICES | TAX, AUDIT AND ADVISORY SERVICES
EST. 2018

INDEPENDENT AUDITORS’ REPORT

THE CBA PROFESSORS

College of Business Administration Department
Wesleyan University – Philippines
Cabanatuan City

Scope and Objectives of Audit:

The scope of this audit shall include the following:

 To determine the number of the members of the group if it has not violated the six members
per group limit.
 To verify the management’s claim that the initial capital is one thousand pesos or above.
 To evaluate their means of product packaging & handling, garbage disposal, proper signage
of the store, and price lists of the product.
 To express an opinion whether the FS are prepared in all material respects in accordance with
the Generally Accepted Accounting Principles.

We, the auditors, shall observe the effectiveness and efficiency of their operations as well as the
accuracy of their financial statements

Audit Findings

 The Financial Report improperly shown the Income Statement, the cost of salesincludes the
various expenses not directly related to product that should have been the operating
expenses.
 Also, it does not include the Owners’ Equity, just the Income Statement and some breakdowns.
 The receipts has no proper signature that will verify the sales, and instead of cash receipts it
were written as cash voucher.
 Overall, the net income and profit match
 The business followed the product packaging & handling, garbage disposal control, proper
signage of the store, and price list of the products.

vlc.company@gmail.com vlc_official 0920-266-6648 www.vlc.company.com

6
 VLC
VICENTE, LICAYCAY AND CAYSIP COMPANY
PROFESSIONAL SERVICES | TAX, AUDIT AND ADVISORY SERVICES
EST. 2018

Opinion

We have audited the financial statements of AVVR Food Partnership, which comprise the Income
Statement of October 17, 2018.

In our opinion, the accompanying financial statements do not present fairly, in all material respects,
the income statement of AVVR Food Partnership on October 17, 2018, and their operations are not in
accordance with the rules set by their adviser.

Basis for Opinion

We conducted our audits in accordance with Philippine Standards on Auditing (PSAs). Our
responsibilities under those standards are further described in the Auditor’s Responsibilities for the
Audit of the Financial Statements section of our report. We are independent of the Corporation in
accordance with the Code of Ethics for Professional Accountants in the Philippines, and we have
fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the
audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Responsibilities of Management and Those Charged with Governance for the Financial Statements

Management is responsible for the preparation and fair presentation of the financial statements in
accordance with the 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.

Those charged with governance are responsible for overseeing the Corporation’s financial reporting
process.

Auditor’s Responsibilities for the Audit of the Financial Statements

Our objectives are to obtain reasonable assurance about whether the financial statements as a
whole are free from material misstatement, whether due to fraud or error, and to issue an auditor’s
report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a

vlc.company@gmail.com vlc_official 0920-266-6648 www.vlc.company.com

7
 VLC
VICENTE, LICAYCAY AND CAYSIP COMPANY
PROFESSIONAL SERVICES | TAX, AUDIT AND ADVISORY SERVICES
EST. 2018

guarantee that an audit conducted in accordance with PSAs will always detect a material
misstatement when it exists. Misstatements can arise from fraud or error and are considered material
if, individually or in the aggregate, they could reasonably be expected to influence the economic
decisions of users taken on the basis of these financial statements. As part of an audit in accordance
with PSAs, we exercise professional judgment and maintain professional skepticism throughout the
audit. We also:

Identify and assess the risks of material misstatement of the financial statements, whether due to
fraud or error, design and perform audit procedures responsive to those risks, and obtain audit
evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting
a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may
involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.
Obtain an understanding of internal control relevant to the audit 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 Corporation’s internal control.

We communicate with those charged with governance regarding, among other matters, the
planned scope and timing of the audit and significant audit findings, including any significant
deficiencies in internal control that we identify during our audit.

Auditors:

Don Joshua M. Caysip, CPA

Kristan M. Licaycay, CPA

Reil Mark S. Vicente, CPA

Address: Cabanatuan City, Nueva Ecija

Date: November 26, 2018

vlc.company@gmail.com vlc_official 0920-266-6648 www.vlc.company.com

8
 VLC
VICENTE, LICAYCAY AND CAYSIP COMPANY
PROFESSIONAL SERVICES | TAX, AUDIT AND ADVISORY SERVICES
EST. 2018

INDEPENDENT AUDITORS’ REPORT

THE CBA PROFESSORS

College of Business Administration Department
Wesleyan University – Philippines
Cabanatuan City

Scope and Objectives of Audit:

The scope of this audit shall include the following:

 To determine the number of the members of the group if it has not violated the six members
per group limit.
 To verify the management’s claim that the initial capital is one thousand pesos or above.
 To evaluate their means of product packaging & handling, garbage disposal, proper signage
of the store, and price lists of the product.
 To express an opinion whether the FS are prepared in all material respects in accordance with
the Generally Accepted Accounting Principles.
We, the auditors, shall observe the effectiveness and efficiency of their operations as well as the
accuracy of their financial statements

Audit Findings

 Acknowledgement receipt was not signed by any authorized person.

 Total purchases declared and total purchase invoices did not equal because no purchase
invoice of buns were submitted by the group.
 Total sales declared and total sales invoices have a difference of P80
 Net loss was understated by 80.
 Sales invoices were not signed by the buyers.
 The ending owner’s equity is also affected to the error made on recognition of the loss.
 The business followed the product packaging & handling, garbage disposal control, proper
signage of the store, and price list of the products.

vlc.company@gmail.com vlc_official 0920-266-6648 www.vlc.company.com

9
 VLC
VICENTE, LICAYCAY AND CAYSIP COMPANY
PROFESSIONAL SERVICES | TAX, AUDIT AND ADVISORY SERVICES
EST. 2018

Opinion

We have audited the financial statements of AVVR Food Partnership, which comprise the Income
Statement of October 23, 2018 and the Owner’s Equity for the period ended.
In our opinion, the accompanying financial statements do not present fairly, in all material respects,
the income statement of AVVR Food Partnership on October 23, 2018 and of statement of owner’s
equity for the period then ended and their operations are not in accordance with the rules set by
their adviser.

Basis for Opinion

We conducted our audits in accordance with Philippine Standards on Auditing (PSAs). Our
responsibilities under those standards are further described in the Auditor’s Responsibilities for the
Audit of the Financial Statements section of our report. We are independent of the Corporation in
accordance with the Code of Ethics for Professional Accountants in the Philippines, and we have
fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the
audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Responsibilities of Management and Those Charged with Governance for the Financial Statements

Management is responsible for the preparation and fair presentation of the financial statements in
accordance with the 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.
Those charged with governance are responsible for overseeing the Corporation’s financial reporting
process.

Auditor’s Responsibilities for the Audit of the Financial Statements

Our objectives are to obtain reasonable assurance about whether the financial statements as a
whole are free from material misstatement, whether due to fraud or error, and to issue an auditor’s
report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a
guarantee that an audit conducted in accordance with PSAs will always detect a material
misstatement when it exists. Misstatements can arise from fraud or error and are considered material

vlc.company@gmail.com vlc_official 0920-266-6648 www.vlc.company.com

10
 VLC
VICENTE, LICAYCAY AND CAYSIP COMPANY
PROFESSIONAL SERVICES | TAX, AUDIT AND ADVISORY SERVICES
EST. 2018

if, individually or in the aggregate, they could reasonably be expected to influence the economic
decisions of users taken on the basis of these financial statements.
As part of an audit in accordance with PSAs, we exercise professional judgment and maintain
professional skepticism throughout the audit. We also:
Identify and assess the risks of material misstatement of the financial statements, whether due to
fraud or error, design and perform audit procedures responsive to those risks, and obtain audit
evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting
a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may
involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.
Obtain an understanding of internal control relevant to the audit 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 Corporation’s internal control.
We communicate with those charged with governance regarding, among other matters, the
planned scope and timing of the audit and significant audit findings, including any significant
deficiencies in internal control that we identify during our audit.

Auditors:

Don Joshua M. Caysip, CPA

Kristan M. Licaycay, CPA

Reil Mark S. Vicente, CPA

Address: Cabanatuan City, Nueva Ecija

Date: November 26, 2018

vlc.company@gmail.com vlc_official 0920-266-6648 www.vlc.company.com

11
 VLC
VICENTE, LICAYCAY AND CAYSIP COMPANY
PROFESSIONAL SERVICES | TAX, AUDIT AND ADVISORY SERVICES
EST. 2018

INDEPENDENT AUDITORS’ REPORT

THE CBA PROFESSORS

College of Business Administration Department
Wesleyan University – Philippines
Cabanatuan City

Scope and Objectives of Audit:

The scope of this audit shall include the following:

 To determine the number of the members of the group if it has not violated the six members
per group limit.
 To verify the management’s claim that the initial capital is one thousand pesos or above.
 To evaluate their means of product packaging & handling, garbage disposal, proper signage
of the store, and price lists of the product.
 To express an opinion whether the FS are prepared in all material respects in accordance with
the Generally Accepted Accounting Principles.
We, the auditors, shall observe the effectiveness and efficiency of their operations as well as the
accuracy of their financial statements

Audit Findings

 Acknowledgement receipt was not signed by any authorized person.

 Total sales declared and total sales invoices have a difference of P20
 Net loss was understated by 20.
 Sales invoices were not signed by the buyers.
 The ending owner’s equity is also affected to the error made on recognition of the loss.
 The business followed the product packaging & handling, garbage disposal control, proper
signage of the store, and price list of the products.

vlc.company@gmail.com vlc_official 0920-266-6648 www.vlc.company.com

12
 VLC
VICENTE, LICAYCAY AND CAYSIP COMPANY
PROFESSIONAL SERVICES | TAX, AUDIT AND ADVISORY SERVICES
EST. 2018

Opinion

We have audited the financial statements of AVVR Food Partnership, which comprise the Income
Statement of October 23, 2018 and the Owner’s Equity for the period ended.
In our opinion, the accompanying financial statements do not present fairly, in all material respects,
the income statement of AVVR Food Partnership on October 23, 2018 and of statement of owner’s
equity for the period then ended and their operations are not in accordance with the rules set by
their adviser.

Basis for Opinion

We conducted our audits in accordance with Philippine Standards on Auditing (PSAs). Our
responsibilities under those standards are further described in the Auditor’s Responsibilities for the
Audit of the Financial Statements section of our report. We are independent of the Corporation in
accordance with the Code of Ethics for Professional Accountants in the Philippines, and we have
fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the
audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Responsibilities of Management and Those Charged with Governance for the Financial Statements

Management is responsible for the preparation and fair presentation of the financial statements in
accordance with the 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.
Those charged with governance are responsible for overseeing the Corporation’s financial reporting
process.

Auditor’s Responsibilities for the Audit of the Financial Statements

Our objectives are to obtain reasonable assurance about whether the financial statements as a
whole are free from material misstatement, whether due to fraud or error, and to issue an auditor’s
report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a
guarantee that an audit conducted in accordance with PSAs will always detect a material

vlc.company@gmail.com vlc_official 0920-266-6648 www.vlc.company.com

13
 VLC
VICENTE, LICAYCAY AND CAYSIP COMPANY
PROFESSIONAL SERVICES | TAX, AUDIT AND ADVISORY SERVICES
EST. 2018

misstatement when it exists. Misstatements can arise from fraud or error and are considered material
if, individually or in the aggregate, they could reasonably be expected to influence the economic
decisions of users taken on the basis of these financial statements.
As part of an audit in accordance with PSAs, we exercise professional judgment and maintain
professional skepticism throughout the audit. We also:
Identify and assess the risks of material misstatement of the financial statements, whether due to
fraud or error, design and perform audit procedures responsive to those risks, and obtain audit
evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting
a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may
involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.
Obtain an understanding of internal control relevant to the audit 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 Corporation’s internal control.
We communicate with those charged with governance regarding, among other matters, the
planned scope and timing of the audit and significant audit findings, including any significant
deficiencies in internal control that we identify during our audit.

Auditors:

Don Joshua M. Caysip, CPA

Kristan M. Licaycay, CPA

Reil Mark S. Vicente, CPA

Address: Cabanatuan City, Nueva Ecija

Date: November 26, 2018

vlc.company@gmail.com vlc_official 0920-266-6648 www.vlc.company.com

14