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Basis For Qualified Opinion

The accuracy and correctness of Cash, Receivables, and Loans Payable - Domestic accounts cannot be determined due to: 1) An unreconciled difference of [AMOUNT] million between cashbook and general ledger balances. 2) Large outstanding cash advances totaling [AMOUNT] million. 3) A net unreconciled variance of [AMOUNT] million between book and bank balances of long-term loans. The lack of adequate records prevented auditors from performing procedures to establish the correctness of year-end balances.

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313 views2 pages

Basis For Qualified Opinion

The accuracy and correctness of Cash, Receivables, and Loans Payable - Domestic accounts cannot be determined due to: 1) An unreconciled difference of [AMOUNT] million between cashbook and general ledger balances. 2) Large outstanding cash advances totaling [AMOUNT] million. 3) A net unreconciled variance of [AMOUNT] million between book and bank balances of long-term loans. The lack of adequate records prevented auditors from performing procedures to establish the correctness of year-end balances.

Uploaded by

lou ann
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© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Basis for Qualified Opinion

As discussed in Part II of the Audit Report, the accuracy and correctness of the
Cash, Receivables and Loans Payable -Domestic accounts cannot be ascertained
due to the:

(1) unreconciled difference of P________ million between the cashbook and


GL/SL balances of the Cash-Local Treasury (CLT) and Cash in Bank-Local
Currency Current Account (CIB-LCCA) accounts;

(2) large unliquidated and outstanding cash advances for regular and special
purposes amounting to P__________ million; and

(3) net unreconciled variance of P_________million between the book and bank
balances of the PNB and DBP long-term loans.

The inadequacy and unavailability of records pertaining to cash,


receivables and domestic loans precluded the auditors from performing
alternative audit procedures necessary to establish the correctness and accuracy
of the year-end balances of said account

Basis for Qualified Opinion

As discussed in Part II, Observations and Recommendations:

a. A discrepancy of Property, Plant and Equipment (PPE) amounting


to __________million between the accounting and property records
existed, thus the accuracy, condition, existence and validity of the
recorded PPE cannot be ascertained;

b. The accuracy, existence, condition and validity of the recorded


Inventories amounting to _______________ million as of December 31,
2016 cannot be ascertained due to the absence of the Report on the
Physical Count of Inventories; and

c. Long outstanding fund transfers to municipalities and barangays


totaling __________ million remained unliquidated, thus Due from
Other LGUs account is possibly overstated and expenses and other
related accounts understated.

We were unable to perform alternative audit procedures in obtaining


sufficient audit evidence to establish the accuracy, existence/condition
and validity of the recorded PPEs and Inventories due to lack of
adequate and proper property records and reports.

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