The AASC alert and the RR 15-2010

A copy of alert from the Auditing and Assurance Standards Council (AASC) has been in my inbox a week ago and its only now that I find time to write for this blog about another topic. Anyhow, I am sharing you this alert for your information and reference. Find time to download and read this for it is so informative. The alert talks about the required information in compliance with RR 15-2010. It also talks about the disclosures required under the PFRS and RR-15 2010 and even the proper presentation of the  financial statements. Furthermore, and take note, you can find in the appendix of the AASC alert an illustrative Audito’s reports like the one below and other examples.

Report on the Financial Statements

We have audited the accompanying financial statements of [name of company], whichcomprise the statements of financial position as at December 31, 2010 and 2009, and thestatements of income, statements of comprehensive income, statements of changes inequity and statements of cash flows for the years then ended, and notes, comprising asummary of significant accounting policies and other explanatory information.

Management’s Responsibility for the Financial Statements

Management is responsible for the preparation and fair presentation of these financial statements in accordance with Philippine Financial Reporting Standards, and for such internal control as management determines is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud orerror.

Auditor’s Responsibility

Our responsibility is to express an opinion on these financial statements based on ouraudits. We conducted our audits in accordance with Philippine Standards on Auditing.Those standards require that we comply with ethical requirements and plan and performthe audit to obtain reasonable assurance about whether the financial statements are freefrom material misstatement.Page 6 of 14An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements. The procedures selected depend on the auditors’judgment, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error. In making those risk assessments, the auditors consider internal control relevant to the entity’s preparation and fair presentation of the financial statements in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness ofthe entity’s internal control. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of accounting estimates made by management, as well as evaluating the overall presentation of the financial statements.We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion.

Opinion

In our opinion, the financial statements present fairly, in all material respects, thefinancial position of [name of company] as at December 31, 2010 and 2009, and its financial performance and its cash flows for the years then ended in accordance with Philippine Financial Reporting Standards.

Report on the Supplementary Information Required Under Revenue Regulations15-2010

Our audit was conducted for the purpose of forming an opinion on the basic financialstatements taken as a whole. The supplementary information on taxes, duties and license fees in Note X to the financial statements is presented for purposes of filing with theBureau of Internal Revenue and is not a required part of the basic financial statements.Such information is the responsibility of management. The information has beensubjected to the auditing procedures applied in our audit of the basic financial statements.In our opinion, the information is fairly stated in all material respects in relation to thebasic financial statements taken as whole.

You can download the AASC alert in here AASC Alert 002 of 2011 – QA on RR 15-2010 03-11-11.