5th Floor, Don Jacinto
Building,
Salcedo cor, Dela Rosa
Street,
Legazpi Village,
Makati City 1229
Tel: +63(2)-403-7228 to 30
Fax: +63(2)-403-7306
[email protected]
www.MVCo.com.ph
January 10, 2017
RK Philippines, Inc.
Audit Requirements
In connection with our audit of the financial statements of RK Philippines, Inc. for
the year ended December 31, 2016, we are pleased to submit our list of audit
requirements with suggested formats including confirmation and other
correspondence templates. In the course of our audit, we may identify additional
requirements and we will inform you accordingly.
General
1. Trial balance (in excel format) as of December 31, 2016*
2. Latest organizational chart
3. Stockholder’s agreements
4. Copies of minutes of the meetings of the Board of Directors and stockholders
from January 1,2016 to date
5. Copies of major contracts, agreements and other documents entered into by the
Company (debt agreements, lease contracts, joint venture, reinsurance etc.)
6. Latest actuarial report for retirement plan, if any
7. Management reports, highlights in operations and internal audit report
8. Strategic plans, including mission, goals and objectives for 2016
9. Business and operating plans for 2016 and 2017.
10. Company’s budget/forecasts for 2016 and 2017.
11. Budgets and analysis of actual vs. budgeted figures for 2016
12. Correspondences received during the year from the Securities and Exchange
Commission (“SEC”) and Bureau of Internal Revenue, if any.
13. VAT returns, Withholding Tax Remittances and Quarterly Income Tax Payments
14. Alpha List
15. Confirmations and Certification (see templates below)
Bank Confirmation
Legal Counsel Confirmation
Maceda Valencia & Co. is an independent member firm of Nexia International, a worldwide network of
independent accounting and consulting firms. Nexia International does not accept any responsibility for the
commission of any act, or omission to act by, or the liabilities of, any of its members. Membership of Nexia
International, or associated umbrella organizations, does not constitute any partnership between members,
and members do not accept any responsibility for the commission of any act, or omission to act by, or the
liabilities of, other members.
Receivable/Payable Confirmation
Corporate Secretary Confirmation
Intercompany Receivable/ Payable Confirmation
Petty Cash Fund
Cash
1. Bank reconciliation statements for all bank accounts and corresponding supports
of bank and book reconciling items*
Includes details of outstanding checks and other significant reconciling items
2. Access to bank statements and/or passbooks
3. Certificate of short-term investments, if any
4. Details of cash on hand and other funds
Receivables
1. Aging schedule of accounts receivable – trade (with subsequent collections)*
2. Analysis of allowance for doubtful accounts and update on problematic accounts
3. Reconciliation of general ledger vs. subsidiary ledger*
4. Details of other receivables (Php and USD)
Related parties
1. Schedule of Advances from Related parties
2. Schedule of Advances to Employees
Prepayments and other current assets*
1. Details of prepaid expenses and related expenses account
2. Summary of creditable tax withheld with certificates (Prepaid Income Tax and
Prepaid Tax)
3. Schedule of input vat and the vat return submitted to BIR (if applicable)
2
Property and equipment and Computer software
1. Lapsing schedule of property and equipment and computer software*
2. Company’s policy on Property and Equipment Depreciation and Computer
Software amortization
3. Details of fixed asset additions, to include description, date of purchase, cost,
estimated useful life and depreciation expense
4. Details of fixed asset disposals, to include description, date of disposal, original
cost, and accumulated depreciation through the date of disposal proceeds from
disposal and any gain\loss realized.
5. Supporting calculation for gain/loss on disposal, including cash receipts for items
sold
Other assets
1. Schedule of Other Investment and Refundable Deposit, including contracts (if
any) to support such account.
Accounts payable and accrued expenses
1. Detailed schedule of accounts payable (Advances from Principal and Loans
Payable) by creditor, showing reference for subsequent payments (i.e. date, OR
#/CV#, amount, etc.)*
2. Detailed schedule of accrued expenses and supporting documents as bases for
accrual
3. GL vs SL reconciliation
4. Access to check registers, wire transfers or other means of disbursements (for
subsequent payments testing)
Revenues and expenses
1. Schedule of taxes and licenses, including description, date of payment, official
receipt number, payee and kind of payment.
2. Schedule of Income/Expense accounts with material balances
3. Nature and analysis of income and expense accounts with significant
deviations/difference compared to prior year
4. Access to vouchers, receipts, invoices, billings, etc.
*Suggested Formats
1. Trial balance
Account Account Debit Credit Ending Balance
Code Description
2. Bank reconciliation statement
Per Books Per Bank
Unadjusted balance P XX P XX
Add (deduct) reconciling items XX XX
Adjusted balance P XX P XX
3
3. Schedule of Receivables
a. Aged schedule of accounts receivable
Subsequent
Collections
Accou Outstandi Current 30 60 days 90 120 Over Referenc Dat Amoun
nt ng days past days days 120 days e e t
Name Balance Past due past past due past due
due due
b. Analysis of movements in trade receivables and allowance for doubtful
accounts
Receivable Allowance for doubtful accounts
Balance, beg P xxxx Balance, beg P xxxx
Add credit sales xx Add provisions xx
Less collections xx Less xx
reversals/recovery
Write off xx Write off xx
Balance, end P xxxx Balance, end P xxxx
4. Prepayments and other current assets
a. Schedule of prepaid expenses
Period
Covered
Original Per To Unamortize
Descriptio Re T Fro Amount Month Mont Date d
n m s h Balance
b. Other current assets
Particulars Reference Reference Date Amount
Document
5. Property and equipment
a.) Lapsing schedule of property and equipment
COST ACCUMULATED DEPRECIATION
Date Asset Rate of Balan Balan Balan Writ Balan
Estimat Additio Dispos Provisio
Acquir Descripti Depreciat ce ce ce e ce
ed Life ns als ns
ed on ion Beg End Beg Offs End
b.) Schedule of additions to property and equipment
Asset Description Ref. Quantity Amount
c.) Schedule of disposals during the year
Gain
Date Accum Net Proceeds/ (loss)
of Sale Ref Descriptio Cost Dep’n Book Selling on Sale
n Value Price
4
5
6. Other assets
a. Schedule of investment in shares of stocks, if any
Equity in
Numbe % of subsidiary
Investe r of ownershi Acquisitio income Dividen Carryin
e shares p n cost (loss) ds g value
b. Schedule of other assets
Date Particulars Ref. Beg. Balance Period End Balance
Activity
7. Accounts payable and accrued expenses
Subsequent Payment
Referen
Date Creditor ce Amount Date Amount
