Independent Auditor's Report

INDEPENDENT AUDITOR’S REPORT

To the Shareholders of _______Company

Report on the Audit of the Financial Statements

Opinion
We have audited the financial statements of ________Company, which comprises the statements of
financial position as at December 31, 20x2 and 20x1, and the statements of comprehensive income,
statements of changes in equity and statement of cash flows for the year then ended, and notes to
financial statements, including a summary of significant accounting policies.
In our opinion, the accompanying financial statements present fairly, in all material respects, the
financial position of the Company as at December 32, 20x2 and 20x1, and its financial performance and
its cash flows for the years ended in accordance with Philippine Financial Reporting Standards (PFRSs).
Basis for Opinion
We conducted our audit 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 Company in accordance with the
Code of Ethics for Professional Accountants in the Philippines (Code of Ethics) together with the ethical
requirements that are relevant to our audit on the financial statements in the Philippines, and we have
fulfilled our ethical responsibilities in accordance with these requirements and the Code of Ethics. 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 PFRS, 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.
In preparing the financial statements, management is responsible for assessing the Company’s ability to
continue as a going concern, disclosing, as applicable, matters related to going concern and using going
concern basis of accounting unless management either intends to liquidate the Company or to cease
operations, or has no realistic alternative but to do so.
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 assurance, but it is not a guarantee that
the audit conducted in accordance with PSAs will always detect a material misstatement when it exits.
Misstatements can arise from fraud or error and are considered material if, individually and 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 our audit in accordance with PSAs, we exercise professional judgment and professional
scepticism throughout the audit. We also:
 Identify and assess risks of material misstatements 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 omission, misrepresentation, or the
override internal control.
 Obtain an understanding of internal control relevant to the audit and 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 Company’s internal control.
 Evaluate the appropriateness of accounting policies used and the reasonableness of accounting
estimates and related disclosures made by management.
 Conclude on the appropriateness of management’s use of the going concern basis of accounting
and, based on the audit evidence obtained, whether a material uncertainty exists related to
events and conditions that may cast significant doubt on the Company’s ability to continue as a
going concern. If we conclude that a material uncertainty exists, we are required to draw
attention in our auditor’s report to the related disclosures in the financial statements or, if
disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit
evidence obtained up to the date of our auditor’s report. However, future events or conditions
may cause the Company to cease to continue as a going concern.
 Evaluate the overall presentation, structure and content of the financial statements, including
the disclosures, and whether the financial statements represent the underlying transactions
and events in a manner that achieves fair presentation.
We communicate with those charged with the governance, among other matters, the planned scope
and timing of the audit, and the significant audit findings, including any significant deficiencies in
internal control that we identify during our audit.
Report on Other Legal and Regulatory Requirements
Our audits were conducted for the purpose of forming an opinion on the basic financial statements
taken as a whole. The supplementary information for the year ended December 31, 20x2 required by
the Bureau of Internal Revenue is presented for purposes of additional analysis and is not a required
part of the basic financial statements prepared in accordance with PFRS. Such supplementary
information is the responsibility of management. The supplementary information has been subjected to
the auditing procedures applied in the audit of the basic financial statements and, in our opinion, it is
fairly stated in all material respects in relation to the basic financial statements taken as a whole.

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INDEPENDENT AUDITOR’S REPORT

To the Shareholders of _______Company

Report on the Audit of the Financial Statements

Basis for Opinion

Auditor’s Responsibilities for the Audit of the Financial Statements

Report on Other Legal and Regulatory Requirements

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