AUDTING THEORY **REVIEWER NG DYOSA **

Assurance Engagemet- Intended to enhance the credibility of information about the subject matter by
evaluating whether subject matter conforms in all material respects with suitable criteria.

Types of Engagement:
Reasonable assurance engagement and Limited Assurance Engagement
*Elements of assurance engagement
-Three party relationship(ARI)* appropriate subject matter(DSBP)*suitable criteria* sufficient
appropriate evidence*written assurance report*

Nature of service AUDIT REVIEW AGREED-UPON COMPILATION

PROCEDURES
Objectives To express opinion To enable CPA to To carry out audit To assist the client
on the FS report whether procedures agreed in the preparation
anything has come on with the client of the financial
to his attention and any statements
that would indicate appropriate third
that the financial parties identified in
statements are the report
NOT presented
fairly
Level of Assurance High or reasonable Moderate or None None
provided by CPA assurance limited assurance
Type of report Positive assurance Negative assurance Description of Identification of
issued (opinion) procedures financial
performed and information
factual findings complied
Basic procedures Risk assessment Inquiry and As agreed Assemble FS based
procedures, test of analytical on clients data
controls and procedures. It does
substantive test not include sssesing
control risk, test of
records and of
response to
inquiries by
obtaining
corroborating
evidence
Independence Required Required Not required Not required
requirement
Other engagements:

Agreed upon procedures * Preparation of tax returns when no conclusion is expressed and tax
consulting*Compilation of financial or other info*Management Consulting*Other Advisory services…
 LAW **REVIEWER NG DYOSA**

 Civil Code of the Philippines (Art.1156)

Juridical necessity to give to do or not to do.
 Requisites of Obligation
*Active subject
*Passive subject
*Prestation
*Efficient cause

* Sources of Obligation (LCQAQ)

Law
Contracts
Quasi-Contracts
Acts and omissions Punishable by law
Quasi – Delict

*Types of Thing or object of obligation

*Obligations of Debtor
*Remedies of Creditor

*Damage vs. Injury

*Kinds of Damages

 Ground s for Liability to pay for damages

F ( as to consent and as to performance) ( as to commission)

N (Contractual, aquilliana,criminal)
D ( solvendi, accipiendi, compensation morae)
 TAX **REVIEWER NG DYOSA**

ESTATE TAX

Class A – Resident or citizen decedent

Class B- Non resident Alien decedent

RULING:

Class A Class B
Real Properties Within and without within
Personal Properties Within and without within
Family Home Within XX
Taxable Transfers Within and without within

 Reciprocity- Intangible properties within owned by NRA

With reciprocity- not included in GE
Without reciprocity- included in GE

Examples of intangible properties within :

a. Franchise exercised in the PH
b.Shares,obligation or bonds issued by any corp organized and constituted in PH
c.” issued by foreign corporation where 85% of the business in the PH
d.” issued by foreign corp but the intangibles have acquired business situs in PH
e.shares or rights in any partnership , business or industry established in PH.

Taxable Transfers
-Transfer in contemplation of death
-revocable transfer
-transfer passing under GPA
-transfer with retention or reservation of rights
-transfer for insufficient consideration
Other items
-proceeds of life insurance
-claims againts insolvent person
-Amounts received by heirs under RA 4917
Exemptions:
Merger of usufruct in the owner of the naked title
Transmission of inheritance to fiduciary to fideicomissary
Transmission from first heir in favor of another beneficiary as desired by predecessor
Transfers to social welfare ,cultural and charitable institutions *no benefit inures to
individual*not more than 30% is used for admin purpose
Valuation:
Usufruct- Basic Standard mortality Table approved by Secretary of Finance with Isurance
comissioner recommendation
Properties
General rule: FV @ time of death
Real property: FV, BIR zonal value vs. FV ,Provincial and city assesor assessed value. HIGHER
Personal property- Recently purchased; Purchase price & not recently: pawn value x3

Shares:
Traded in local stock exchange: MEAN between highest and lowest quotations on valuation
date or nearest
Not Traded in local stock exchange:
a. Common- BV on valuation date
b. Preferred – par value

CPG ACP
Properties before marriage Exclusive Common
Common Exclusive
Fruits from exclusive
property after marriage