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Application
Instructions
This confirmation is designed to confirm the amounts held with the client’s bank. This form should be used with the
Client Request Letter for Bank Confirmation. Confirmation.com should be used to request a bank confirmation for a
client whose financial institution is registered with Confirmation.com.
Audit team must ensure client and audit team specific information are completed before the audit team forwards the
confirmation letters to the bank. Insert all known account names and the corresponding BSB and account numbers.
Provide specific details of the auditor to whom the confirmation is to be returned. The confirmation must not be
directed back to or via the client.
If for any reason a bank declines to respond to a confirmation request or there are reasons to doubt its reliability,
auditors must:
obtain further evidence to resolve the doubts
evaluate the implications to the risk assessment
Consider the implications to the audit opinion.
Objective
To help the auditor obtain reliable documentary audit evidence sourced directly from the audit client’s bankers and
comply with the requirements of auditing standards.
Documentation
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Background
ASA 500 ‘Audit Evidence’ indicates that the reliability of audit evidence is influenced by its source, nature and the
circumstances under which it is obtained. ASA 505 ‘External Confirmations’ and GS 016 ‘Bank Confirmation Requests’
sets out the requirements and guidance for the auditor to maintain control over the external confirmation requests by:
determining the information to be confirmed
selecting the confirming parties
designing and addressing the requests so the information is returned directly to the auditor
Sending requests and follow up requests directly to the confirming party.
GS 016 ‘Bank Confirmations’ advises the auditor to send the bank confirmation request to the bank at least 15 working
days before the period end date.
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(a) Confirm the details provided in the shaded areas are correct as at the confirmation date shown
below, and highlight any variation/s. Also add any relevant information that may have been
omitted by the customer/auditor.
(b) Complete the unshaded areas in sections 1-10.
(c) Sign the completed form and return the original directly to the auditor and a duplicate to the
customer, in the stamped addressed envelopes provided (if applicable). A copy may be retained
by the bank.
Bank (Name and Address) Customer/Entity (Name and Address)
Contact Name:
Third Party Authority attached Yes/No/ Not applicable
Telephone Number:
Fax Number:
Email Address:
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Provide details of all account balances in favour of the bank customer as at the confirmation date, in
respect of current accounts, interest bearing deposits, foreign currency accounts, convertible certificates
of deposit, money market deposits, cash management trusts and any other credit balances. Provide
details for the accounts listed below and for any other accounts not listed.
Provide details of any account or balance that is subject to any restriction(s) whatsoever and indicate
the nature and extent of the restriction e.g. garnishee order.
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Provide details of all account balances owed to the bank by the bank customer as at the confirmation
date, in respect of overdraft accounts, bank loans, term loans, credit cards and any other debit balances.
Provide details of any account or balance that is subject to any restriction(s) whatsoever and indicate
the nature and extent of the restriction e.g. garnishee order.
(a) Acceptances, bills discounted with recourse to the customer or any subsidiary or related party of
the customer, endorsed drafts/notes, forward exchange contracts, letters of credit, liability in
respect of shipping documents where customer’s account not yet debited.
(b) Bonds, guarantees, indemnities or other undertakings given to the bank by the customer in favour
of third parties (including separately any such items in favour of any subsidiary or related party of
the customer). Give details of the parties in favour of whom guarantees or undertakings have
been given, whether such guarantees or undertakings are written or oral and their nature.
(c) Bonds guarantees, indemnities or other undertakings given by you, on your customer’s behalf,
stating whether there is recourse to your customer and/or any other related entity.
(d) Other liabilities—give details.
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ITEMS HELD AS SECURITY FOR CUSTOMER’S LIABILITIES TO THE BANK (Bank to complete)
With respect to items held as security for customer’s liabilities to the bank indicate whether the
security:
(a) relates to particular borrowings or liabilities to the bank and whether it is lodged in the customer’s
name or by a third party. (If lodged by a third party, that party’s authority to disclose details must
be attached)
(b) is formally charged (provide details of date, ownership and type of charge)
(c) supports facilities granted by the bank to the customer or to another party
(d) is limited in amount or to a specific borrowing or, if to your knowledge, there is a prior, equal or
subordinate charge.
Provide details of any arrangements for set-off of balances or compensating balances e.g., back to back
loans. Include details of date, type of document and account covered, any acknowledgement of set-off,
whether given by specific letter of set-off or incorporated in some other document.
List details of any accounts opened or closed during the twelve months prior to confirmation date.
Account Name BSB Account Number Open or Date
Number Closed? opened/closed
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With reference to the customer’s accounts with the bank, provide details of any defaults or breaches
during the period and full details of such defaults and breaches. Include details, for example, of:
(a) loans payable in default at the confirmation date and whether they have since been re-negotiated,
and
(b) bank covenants breached during the twelve months up to the confirmation date and whether the
breach was remedied.
OTHER INFORMATION
Please confirm (see shaded area below) and/or provide any other details (unshaded area below) relating
to any financial relationships not dealt with under sections to 1-9 above.
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This certificate has been completed from our records at……………………………………(bank details).
The Bank and its staff are unable to warrant the correctness of that information and accordingly hereby
disclaim all liability in respect of the same. The information contained herein is confidential and
provided for private use in confirmation of our customer accounts for audit purposes only. It may not be
used for any other purpose or by any other persons. In particular this is not a credit reference.
Name (print
name)
Title
Telephone
Number
Email Address
Date Completed
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You have given your consent to allow J.K.A. and Co., as successor independent auditors for CY Pacific
Consolidated Inc., access to our working papers for our audit of the December 31, 2015, financial
statements of CY Pacific Consolidated Inc. You also have given your consent to us to respond fully to
J.K.A. and Co. inquiries. You understand and agree that the review of our working papers is undertaken
solely for the purpose of obtaining an understanding about CY Pacific Consolidated Inc. and certain
information about our audit to assist CY Pacific Consolidated Inc. in planning the audit of the December 31,
2015, financial statements of CY Pacific Consolidated Inc.
Please confirm your agreement with the foregoing by signing and dating a copy of this letter and returning it
to us. Attached is the form of the letter we will furnish J.K.A. and Co., regarding the use of the working
papers.
Accepted:
CY Pacific Consolidated Inc.
By: ___________________________
Date: ____________
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In connection with an audit of our financial statements at December 31, 2015 and for the year then ended,
management of the Company has prepared, and furnished to our auditors, (J.K.A. and Co.), Quezon
Avenue Corner Banaue, Quezon City, a description and evaluation of certain contingencies, including those
set forth below involving matters with respect to which you have been engaged and to which you have
devoted substantive attention on behalf of the Company in the form of legal consultation or representation.
These contingencies are regarded by management of the Company as material for this purpose
(management may indicate a materiality limit if an understanding has been reached with the auditor). Your
response should include matters that existed at (and during the period from that date to the date of your
response.
Please furnish to our auditors such explanation, if any, that you consider necessary to supplement the
foregoing information, including an explanation of those matters as to which your views may differ from
those stated and an identification of the omission of any pending or threatened litigation, claims, and
assessments or a statement that the list of such matters is complete
We understand that whenever, in the course of performing legal services for us with respect to a matter
recognized to involve an unasserted possible claim or assessment that may call for financial statement
disclosure, if you have formed a professional conclusion that we should disclose or consider disclosure
concerning such possible claim or assessment, as a matter of professional responsibility to us, you will so
advise us and will consult with us concerning the question of such disclosure and the applicable
requirements of Financial Accounting Standards Codification 450, Contingencies. Please specifically
confirm to our auditors that our understanding is correct.
Please specifically identify the nature of and reasons for any limitation on your response.
Yours sincerely,
_________________________
Diane Margarette E. Yap
Secretary
CY Pacific Consolidated, Inc.
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Management Letter
March 25, 2016
Ladies and Gentlemen: In planning and performing our audit of the financial statements of the CY Pacific
Consolidated Inc., as of and for the year ended December 31, 2015, in accordance with Philippine
Standards on auditing (“PSAs”) as promulgated by the Auditing and Assurance Standards Council, we
considered the Company’s internal control over financial reporting as a basis for designing audit
procedures that are appropriate in the circumstances for the purpose of expressing our opinion on the
financial statements. In conjunction with our audit of the financial statements, we also performed an audit of
internal control over financial reporting in accordance with attestation standards established by the
Philippine Institute of Certified Public Accountants.
During our audit we noted certain matters involving internal control and other operational matters that are
presented for your consideration. These comments and recommendations, all of which have been
discussed with the appropriate members of management, are intended to improve internal control or result
in other operating efficiencies. The summary of key audit issues presented in this letter provides our
observations for your consideration in order to comply with the provisions of International Standard on
Auditing (ISA) 260 “Communication of Audit Matters with those charged with Governance”.
Our Audit procedures are designed primarily to enable us to form an opinion on the financial statements
and on the effectiveness of internal control over financial reporting, and therefore may not bring to light all
weaknesses in policies or procedures that may exist. We aim, however, to use our knowledge of the
organization gained during our work to make comments and suggestions that we hope will be useful to you.
We would be pleased to discuss these comments and recommendations with you at any time.
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The purpose of this letter is solely to describe comments and recommendations intended to improve
internal control or result in other operating efficiencies. Accordingly, this letter is not suitable for any other
purpose.
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This representation letter is provided in connection with your audit of the financial statements of CY Pacific
Consolidated, Inc. for the year ended December 31, 2015 for the purpose of expressing an opinion as to
whether the financial statements give a true and fair view of (present fairly, in all material respects) the
financial position of CY Pacific Consolidated, Inc. as of December 31, 2015 and of the results of its
operations and its cash flows for the year then ended in accordance with (indicate applicable financial
reporting framework).
We acknowledge our responsibility for the fair presentation of the financial statements in accordance with
(indicate applicable financial reporting framework).
We confirm, to the best of our knowledge and belief, the following representations:
Include here representations relevant to the entity. Such representations may include the following:
There have been no irregularities involving management or employees who have a significant role
in internal control or that could have a material effect on the financial statements.
We have made available to you all books of account and supporting documentation and all minutes
of meetings of shareholders and the board of directors
We confirm the completeness of the information provided regarding the identification of related
parties.
AUDITING
The financial statements are free of material misstatements, including omissions.
The Company has complied with all aspects of contractual agreements that could have a material
effect on the financial statements in the event of noncompliance. There has been no
noncompliance with requirements of regulatory authorities that could have a material effect on the
financial statements in the event of noncompliance.
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The following have been properly recorded and, when appropriate, adequately disclosed in the
financial statements:
o The identity of, and balances and transactions with, related parties.
o Losses arising from sale and purchase commitments.
o Agreements and options to buy back assets previously sold.
o Assets pledged as collateral.
We have no plans or intentions that may materially alter the carrying value or classification of
assets and liabilities reflected in the financial statements.
We have no plans to abandon lines of product or other plans or intentions that will result in any
excess or obsolete inventory, and no inventory is stated at an amount in excess of net realizable
value.
The Company has satisfactory title to all assets and there are no liens or encumbrances on the
company’s assets, except for those that are disclosed in Note X to the financial statements.
We have recorded or disclosed, as appropriate, all liabilities, both actual and contingent, and have
disclosed in Note X to the financial statements all guarantees that we have given to third parties.
Other than . . . described in Note X to the financial statements, there have been no events
subsequent to period end which require adjustment of or disclosure in the financial statements or
Notes thereto.
The . . . claim by XYZ Company has been settled for the total sum of XXX which has been properly
accrued in the financial statements. No other claims in connection with litigation have been or are
expected to be received.
There are no formal or informal compensating balance arrangements with any of our cash and
investment accounts. Except as disclosed in Note X to the financial statements, we have no other
line of credit arrangements.
We have properly recorded or disclosed in the financial statements the capital stock repurchase
options and agreements, and capital stock reserved for options, warrants, conversions and other
requirements.
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The management of CY PACIFIC CONSOLIDATED INC. is responsible for the preparation and fair
presentation of the financial statements for the year ended December 31, 2015, including the additional
components therein, in accordance with prescribed financial reporting framework, indicated therein. This
responsibility includes designing and implementing internal controls relevant to the preparation and fair
presentation of financial statements that are free from material misstatement, whether due to fraud or error,
selecting and applying appropriate policies, and making accounting estimates that are reasonable in
circumstances.
The Board of Directors reviews and approves the financial statements and submits the same to the
stockholders.
Aileen C. Leopardas, the independent auditor appointed by the stockholders, has examined the financial
statements of the company in accordance with Philippine Standards on Auditing, and in its report to the
stockholders, has expressed its opinion on the fairness of presentation upon completion of such
examination.
SUBSCRIBED AND SWORN to before me this 28th day January 2018, affiant exhibiting to me
his/her No. issued at on .
Notary Public
Doc. No. :
Page No. :
Book No. :
Series of 2018
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If this letter expresses you understanding, please sign the enclosed copy where indicated and return it to
us.
Sincerely,
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The auditor has a responsibility to plan and perform the audit to obtain reasonable assurance about
whether the financial statements are free of material misstatement, whether caused by error or fraud.
Because of the nature of audit evidence and the characteristics of fraud, the auditor is able to obtain
reasonable, but not absolute, assurance that material misstatements are detected. The auditor has no
responsibility to plan and perform the audit to obtain reasonable assurance that misstatement, whether
caused by errors or fraud, that are not material to the financial statements are detected.
The financial statements are management’s responsibility. The auditor’s responsibility is to express an
opinion on the financial statements. Management is responsible for adopting sound accounting policies and
for establishing and maintaining internal control that will, among other things, initiate, record, process, and
report transactions (as well as events and conditions) consistent with management’s assertions embodied
in the financial statements. The entity’s transaction and the related assets, liabilities, and equity are within
the direct knowledge and control of management. The auditors’ knowledge of these matters and internal
control is limited to that acquired through the audit. Thus, the fair presentation of financial statements in
conformity with generally accepted accounting principles is an implicit and integral part of management’s
responsibility. The independent auditor may make suggestions about the form or content of the financial
statements or draft them, in whole or in part, based on information from management during the
performance of the audit. However, the auditor’s responsibility for the financial statements he or she has
audited is confined to the expression of his or her opinion on them.
AILEEN C. LEOPARDAS
Audit Manager
J.K.A. and Co.
Our fee for these services will be at our regular per diem rates, plus travel and other out-of –pockets costs.
We expect fees to aggregate approximately Php125, 000.00. Invoices will be rendered monthly and our
payable on presentation.
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If this letter expresses you understanding, please sign the enclosed copy where indicated and return it to
us.
Sincerely,
Mr.
President
CY Pacific Consolidated Inc.
Date
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CHART OF ACCOUNTS
CY PACIFIC CONSOLIDATED
CHART OF ACCOUNTS
A CASH
A-01 CASH IN BANKS
A-02 PETTY CASH FUND
B RECEIVABLES
B-01 TRADE RECEIVABLES
B-02 OTHER RECEIVABLE
C INVENTORIES
C-01 MERCHANDISE INVENTORIES
D OTHER CURRENT ASSETS
D-01 INPUT TAXES
D-02 PREPAYMENTS
D-03 PRIOR YEAR'S EXCESS CREDIT
E PROPERTY & EQUIPMENT
E-01 OFFICE EQUIPMENT
E-02 ACCUMULATED DEPRECIATION
E-03 FURNITURE & FIXTURES
E-04 ACCUMULATED DEPRECIATION
E-05 MOTOR VEHICLE
E-06 ACCUMULATED DEPRECIATION
F ACCOUNTS PAYABLE & OTHER CURRENT LIABILITIES
F-01 TRADE PAYABLES
G CURRENT TAX PAYABLE
H OUTPUT TAX
I ADVANCES PAYABLE
J SHARE CAPITAL
K ACCUMULATED PROFITS
L APPROPRIATION RESERVES
M SALES
N COST OF SALES
O SELLING & DISTRIBUTION COSTS
M-01 Advertising & Promotion Expense
M-02 Power, Light &water
M-03 Repairs & Maintenance Expense
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M-04 Telecommunications
M-05 Travel & Transportation
M-06 Gas &Oil
M-07 Representation & Entertainment
M-08 Insurance
M-09 Salaries & wages
M-10 Statutory Contribution
M-11 Depreciation
P General & Administrative costs
N-01 Repairs & Maintenance Expense
N-02 Office Supplies
N-03 Insurance
N-04 Power, Light &water
N-05 Telecommunications
N-06 Travel & Transportation
N-07 Gas &Oil
N-08 Professional Fee
N-09 Salaries & wages
N-10 Taxes & Licenses
N-11 Statutory Contribution
N-12 Depreciation
N-13 Miscellaneous
Q Interest Income
R Current Tax Expense
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Lead Schedules
CY Pacific Consolidated Inc.
For the year ended December 31, 2015
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Supporting Schedules
CY Pacific Consolidated Inc.
For the year ended December 31, 2015
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Conclusions and
Recommendations
CY Pacific Consolidated Inc.
For the year ended December 31, 2015
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