Opinion 2021

INDEPENDENT AUDITORS’ REPORT

Report on the Audit of the Financial Statements

Opinion

We have audited the accompanying financial statements of ______________-. (the

“Company”), which comprise the statements of financial position as at December 31, 2021 and
2020, and the statements of comprehensive income, statements of changes in equity and
statements of cash flows for the years then ended, and notes to the financial statements.
In our opinion, the financial statements present fairly, in all material respects, the financial
position of the Company as at December 31, 2021 and 2020 and its financial performance and
its cash flows for the years ended in accordance with Philippine Financial Reporting Standards
for Small Entities.
Basis of 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 Company
in accordance with the Code of Ethics for the Professional Accountants in the Philippines (Code
of Ethics) together with the ethical requirements that are relevant to our audit of the financial
statements in the Philippines, and we have fulfilled our other 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.
Material uncertainty related to going concern
We draw attention to Note 1 in the financial statements, which indicates that the Company
incurred a net loss of P2,222,953 during the year ended December 31, 2021 and, as of that date,
the Company’s liabilities exceeded its total assets by P4,777,949. As stated in Note 1, these
events or conditions, along with other matters set forth in Note 1, indicate a material uncertainty
exists that may cast significant doubt on the Company’s ability to continue as a going concern.
Our opinion is not modified in respect of this matter.
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 Philippine Financial Reporting Standards for Small Entities, 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 the 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.
Those charged with governance are responsible for the overseeing the Company’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 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 or 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 such 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 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.
Report on the Supplementary Information Required Under Revenue Regulations
Our audits were conducted for the purpose of forming an opinion on the basic financial
statement taken as a whole. The supplementary information required under Revenue
Regulations 15-2010 to the financial statements is presented for purposes of filing with
Bureau Internal Revenue and is not a required part of the basic financial statements. Such
information is the responsibility of the management. The supplementary information has been
subjected to the auditing procedures applied in our audit of the basic financial statements. In
our opinion, the information is fairly stated in all material respects in relation to the basic
financial statements taken as a whole.
_________________________________
Board of Accountancy Accreditation No. ____________
_________________ valid until ______________
BIR Accreditation No. _________________
_____________ valid until ____________
Tax Identification No. ____________---
By:
________________________-
CPA Certificate No. ____________
Tax Identification No. ______________
BIR Accreditation Number _____________-
Valid until _____________-
PTR #________________--
April 9, 2022
Calamba City, Laguna

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INDEPENDENT AUDITORS’ REPORT

Report on the Audit of the Financial Statements

We have audited the accompanying financial statements of ______________-. (the

Material uncertainty related to going concern

Auditor’s Responsibilities for the Audit of the Financial Statements

 Obtain an understanding of internal control relevant to the audit in order to design

 Evaluate the appropriateness of accounting policies used and the reasonableness of

 Conclude on the appropriateness of management’s use of the going concern basis of

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