PBB, Cpa'S Accounting - Audit - Advisory

PBB, CPA's
Accounting•Audit•Advisory
1 January 2021
LALALISA
Treasurer
KMJS PINEAPPLE CORP.
Brgy. GMA-B, Bagong Buhay, Saloy
Davao City
Re: Audit Engagement

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Maam/Sir:
Objective and scope of the audit
You have requested that we audit the financial statements KMJS PINEAPPLE CORPORATION as
of December 31, 2020 and related statements of income and cash flows for the year then
ended,and notes, comprising a summary of significant accounting policies and other
explanatory information. We are pleased to confirm our acceptance and our understanding of
this engagement by means of this letter. Our audit will be made with the objective of our
expressing an opinion on the financial statements.
Our responsibilities
We will conduct our audit in accordance with Philippine Standards on Auditing. Those
Standards require that we plan and perform the audit to obtain reasonable assurance about
whether the financial statements are free of material misstatements.The procedures selected
depend on the auditor’s judgement, including the assessment of the risks of material
misstatement of the financial statements, whether due to fraud or error An audit includes
examining, on a test basis, evidence supporting the amounts and disclosures in the financial
statements. An audit also includes assessing the accounting principles used and significant
estimates made by management, as well as evaluating the overall financial statement
presentation.
Because of the test nature and other inherent limitations of an audit together with the inherent
limitations of any accounting and internal control system, there is an unavoidable risk that even
some material misstatements may remain undiscovered.
In addition to our report on the financial statements, we expect to provide you with a separate
letter concerning any material weaknesses in accounting and internal control systems which
come to our notice.
In planning the audit, we will assess the risk that fraud and error may cause the financial
statements to contain material misstatements and inquire from management as to any fraud or
significant error, which has been discovered. We will design our audit procedures to obtain
reasonable, but not absolute, assurance that misstatements arising from fraud and error, which
are material to be financial statements taken as a whole, are detected.
We remind you that the responsibility for the preparation of financial statements including
adequate disclosure is that of the management of the company. This includes the maintenance
of adequate accounting records and interal controls, the selection and application of accounting
policies, and the safeguarding of the assets of the company. As part of out audit process, we
will request from management written confirmation concerning representation made to us in
connection with the audit.
Our services and deliverables
If during the course of our work, it appears, for any reason, that we will be unable to render an
unqualified opinion on the financial statements, or that our report will require an explanatory
paragraph, we will discuss this with you. It is possible that because of unexpected
circumstances, we may determine that we cannot render a report or otherwise complete the
engagement. If, for any reason, we are unable to complete the audit or are unable to form or
have not formed an opinion, we may decline to express an opinion or decline to issue a report
as a result of the engagement. If, in our professional judgment, the circumstances require, we
may resign from the engagement prior to completion.
Your responsibilities
We look forward to full cooperation with your staff and we trust that they will make available
to us whatever records, documentation and other information are requested in connection
with our audit. Our fees, which will be billed as work progresses, are based on the time
required by the individuals assigned to the engagement plus out of-pocket expenses. Individual
hourly rates vary according to the degree of responsibility involved and the experience and skill
required.
Acknowledgment and acceptance

This letter will be effective for future years unless it is terminated, amended or superseded.
Please sign and return the attached copy of this letter to indicate that it is in accordance with
your understanding of the arrangements for our audit of the financial statements.
Sincerely yours,
Dessie Mae Pilongo
Partner
Noted by:
Novelyn B. Bancas and Honey Mae V. Barcelo
Managing Partner
Conforme:_____________________

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PBB, CPA's

Re: Audit Engagement

Objective and scope of the audit

Our services and deliverables

Acknowledgment and acceptance

Dessie Mae Pilongo

Novelyn B. Bancas and Honey Mae V. Barcelo

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