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    Engagementletter TP

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    Donna Mae Singson
    The audit firm Roces Adriano Sales, CPA's has been engaged to conduct an audit of Grace Corporation's 2017 financial statements. The audit will be performed according to Philippine Standards on Auditing, including evaluating internal controls, accounting policies, and accounting estimates. Management is responsible for preparing accurate financial statements and providing access to records and personnel. The audit fee is 80,000 pesos plus out-of-pocket costs based on staff time, and the engagement letter remains in effect until cancelled or modified. Management should sign and return the acknowledgement copy to confirm the audit arrangement.

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    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd

    Engagementletter TP

    Uploaded by

    Donna Mae Singson
    31 views3 pages
    The audit firm Roces Adriano Sales, CPA's has been engaged to conduct an audit of Grace Corporation's 2017 financial statements. The audit will be performed according to Philippine Standards on Auditing, including evaluating internal controls, accounting policies, and accounting estimates. Management is responsible for preparing accurate financial statements and providing access to records and personnel. The audit fee is 80,000 pesos plus out-of-pocket costs based on staff time, and the engagement letter remains in effect until cancelled or modified. Management should sign and return the acknowledgement copy to confirm the audit arrangement.

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    The audit firm Roces Adriano Sales, CPA's has been engaged to conduct an audit of Grace Corporation's 2017 financial statements. The audit will be performed according to Philippine Standards on Auditing, including evaluating internal controls, accounting policies, and accounting estimates. Management is responsible for preparing accurate financial statements and providing access to records and personnel. The audit fee is 80,000 pesos plus out-of-pocket costs based on staff time, and the engagement letter remains in effect until cancelled or modified. Management should sign and return the acknowledgement copy to confirm the audit arrangement.

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Download as docx, pdf, or txt
    31 views3 pages

    Engagementletter TP

    Uploaded by

    Donna Mae Singson
    The audit firm Roces Adriano Sales, CPA's has been engaged to conduct an audit of Grace Corporation's 2017 financial statements. The audit will be performed according to Philippine Standards on Auditing, including evaluating internal controls, accounting policies, and accounting estimates. Management is responsible for preparing accurate financial statements and providing access to records and personnel. The audit fee is 80,000 pesos plus out-of-pocket costs based on staff time, and the engagement letter remains in effect until cancelled or modified. Management should sign and return the acknowledgement copy to confirm the audit arrangement.

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Download as docx, pdf, or txt
    of 3

    Board of Directors

    Grace Corporation
    12 Ninoy, Avenue, Paranaque City Philippines

    To the Board of Directors


    You authorized us to conduct an audit of Grace Corporation's financial statements,
    which consist of a statement of financial position as of December 31, 2017, an income
    statement, a statement of changes in equity, a cash flow statement, an overview of key
    accounting policies, and other explanatory data. With this letter, we are grateful to
    explicitly reaffirm our understanding of and acceptance of the audit engagement. In
    order for us to provide an opinion on the financial statement, our audit will be performed
    out.
    Responsibilities
    The Philippine Standards on Auditing shall be followed when we conduct our audit.
    According to those criteria, we must follow ethical guidelines, plan and carry out the
    audit to get a reasonable level of assurance that the financial statements are accurate
    and free from material misstatement. Performing procedures chosen based on the
    auditor's judgment, including the evaluation of the risk of a major misstatement of the
    financial statement, whether due to fraud or error, is part of an audit. Aside from
    assessing the overall presentation of the financial statement, an audit also entails
    assessing the validity of the accounting policies followed and the reasonableness of
    management's accounting estimates.

    We consider internal control relevant to the entity's preparation of 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 entity's internal control's effectiveness. We
    will, however, notify you in writing of any significant deficiencies in internal control
    related to the audit of the financial statements that we discovered during the audit.

    Regardless of whether the audit is correctly planned and carried out in accordance with
    PSA's, there is a foreseeable danger that some significant misstatements may not be
    recognized due to the inherent constraints of an audit and their internal control.
    We consider internal control relevant to the entity's preparation of 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 entity's internal control's effectiveness. We
    will, however, notify you in writing of whatever significant internal control deficiencies
    related to the audit of the financial statements that we encountered during the audit.

    The Management Responsibilities

    Our audit will be performed on the assumption that management and those implicated
    in governance recognize and comprehend their responsibilities.

     In charge of preparing and accurately presenting financial statements in


    accordance with Philippine Financial Reporting Standards.
     For certain internal control as management deems necessary to allow the
    preparation of financial statements free of material misstatement, whether due to
    fraud or error, and
     to provide;
    1. Access to all source of illumination, including records, documents, and other
    items, that is necessary for the creation of the financial statements.
    2.Extra information that we could ask you for to complete the audit, including
    3.Unrestricted access to business professionals who we believe to be necessary
    to contact in order to compile audit evidence.

    As part of our audit process, we will actively sought written confirmation from
    management and, where appropriate, those charged with governance pertaining
    representations made to us in connection with the audit.

    We foresee full cooperation from your staff during our audit.

    Fees

    Our fees, which are determined by the amount of time necessary by the people
    assigned to the engagement, will be billed as work is completed and will be 80,000 plus
    out-of-pocket costs. Depending on the level of responsibility, experience, and ability
    needed, individual hourly rates change.
    Unless it is cancelled, modified, or suspended, this letter will be in force for all
    subsequent periods.

    To ensure that your knowledge of the arrangement for our audit of the financial
    statement is appropriate, kindly acknowledge and return the copy of this letter that is
    attached.

    Yours Truly, Acknowledge on behalf of Grace Corporation by

    X X

    Roces Adriano, CPA


    Roces Adriano Sales, CPA’s

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