INTERNAL QUALITY REVIEW PROCEDURES

1. Independence, Integrity and Objectivity, Professional Competence and Due care,

Confidentiality, and Professional Behavior

 Ensure that independence is practiced in all audit engagements.

 Maintain objectivity and integrity in all relationships and in the performance

of audit.

 Professional competence and due care of the auditor and of the assistants must
be considered in performing the work.

 The confidentiality of all documents and information in association with the

audit should be maintained.

 Professional behavior must be observed at all times during the audit.

2. Acceptance and Continuance of Clients

 Obtain and review available financial statements regarding the prospective

client.

 Perform background checks of the proposed clients.

 Communicate with the predecessor auditor. Inquire about facts that might bear
on the integrity of the principal owners, key management and those charged
with governance of the entity.

 Assess whether the engagement team is competent to perform the audit and
has the necessary time and resources.

 Determine that acceptance of the client would not violate codes of

professional ethics.

3. Engagement Performance

 Ensure that each individual engagement is adequately planned.

 Maintain that audit procedures are performed with due professional

care.

 Ensure that audit procedures and audit results are well-documented.

 Communicate audit results to client in a timely manner.

 Ensure quality in the performance of work and services.

 Ensure the appropriateness of the auditor’s report to be issued.

4. Monitoring

 Review and test compliance with the general quality control policies and
procedures.

 Discuss general findings, recommendations and corrective actions taken or

planned with appropriate management personnel.

 Determine that planned corrective actions were taken.

 Document quality control compliance and indicate reasons for non-

compliance, if the case may be.

Signed this 22nd day of January, 2011.

CAREN KAY D. BONGALOS

Certified Public Accountant
PRC Reg. No. 121618