2017 STATEMENT OF MANAGEMENT’S RESPONSIBILITY (SMR) FOR SEC


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For those searching for a copy of the latest, year 2016 – 2017,  Statement of Management’s Responsibility (SMR) for the Securities and Exchange Commission (SEC).  Here it is:

 

 


LETTER HEAD OF THE COMPANY


           STATEMENT OF MANAGEMENT’S RESPONSIBILITY

_____________, 2017

The Securities and Exchange Commission
SEC Building
Mandaluyong City, Metro-Manila

The management of (PUT THE NAME OF THE COMPANY HERE) is responsible for the preparation and fair presentation of the financial statements, including the schedules attached therein, for the years ended December 31, 2016 and 2015, in accordance with the prescribed financial reporting framework indicated therein, 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 or error.

In preparing the financial statements, management is responsible for assessing the Company’s  ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless management either intends to liquidate the Company or to cease operations, or has no realistic alternative to do so.

The Board of Directors is responsible for overseeing the Company’s financial reporting process.

The Board of Directors reviews and approves the financial statements including the schedules attached therein, and submits the same to the stockholders.

(PUT THE NAME OF CURRENT CONTRACTED CPA HERE) and (PUT THE NAME OF THE PREVIOUS CPA HERE, IF ANOTHER CPA RENDERED AN OPINION ON THE PREVIOUS FINANCIAL STATEMENTS), the independent auditors, appointed by the stockholders for the period December 31, 2016 and 2015, respectively, have examined the financial statements of the company in accordance with Philippines Standards on Auditing, and in their reports to the stockholders, have expressed their opinion on the fairness of presentation upon completion of such examination.

______________
Chairman of the Board   

______________
Chief Executive Officer

______________
Chief Finance Officer

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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.

INDEPENDENT AUDITOR’S REPORT
The Board of Directors and Stockholders
Name of CompanyAddress

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.

Date of the Auditor’s Report
Auditor’s address

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

BIR related, How is a particular taxpayer selected for audit?


Officers of the BIR, like for example the Revenue District Officers, the Chief of Large Taxpayer Assessment Division, or the Chief of Excise Taxpayer Operations Division, or even the Chief of Policy Cases and Tax Fraud Division, are responsible for the conduct of audit and/or investigation.  The same offices are the one responsible for the preparation of a list of all taxpayer who fall, again, again, who fall within the selection criteria prescribed in a Revenue Memorandum Order issued by CIR to establish guidelines for the audit program of a particular year.

The list of taxpayers shall then be submitted to their respective Assistant Commissioner for pre-approval and to the Commissioner of Internal Revenue for final approval. The list submitted by RDO shall be pre-approved by the Regional Director and finally approved by Assistant Commissioner, Assessment Service.

The following statements were lifted from RMO 19-2000 for your reference

Selection of said returns for audit shall be based on the following order of priority:

(1) tax cases for audit based on policy direction of the Commissioner;

(2) taxpayers with third party information which resulted to substantial reduction in tax payments; and

(3) taxpayers with low tax compliance.

Taxpayers under the jurisdiction of the Large Taxpayers Service and Excise Taxpayers Service are not covered by the Order. Only the Revenue District Offices are authorized to conduct a short-term audit. In no case shall the Assessment Division and Special Investigation Division in the Regional Offices be allowed to perform a short-term audit of tax returns. All Letters of Authority (Las)/Audit Notices (ANs) shall be issued and approved by the Regional Director. However, no Las/ANs shall be issued by the Regional Director without prior written approval of the ACIR, Assessment Service. Only Revenue Officers-Assessment Group shall be authorized to conduct audit and investigation of tax cases, whether in a principal or assisting capacity. The same Revenue Officer and/or Group Supervisor shall not be assigned to audit/investigate the same taxpayer during the year except when this is not possible due to limited number of Group Supervisor/Revenue Officer in the RDO.

HOWEVER, pleaser refer RMOs 64-99, 67-99, 18-2000 for further information.

For CPAs: 2011 BOA Accreditation Applications


Here is a good news!

News, news, news….

The Regional Trial Court Branch 128 of Caloocan City issued an injunction on the implementation of PRBOA Resolution No. 88, Series of 2009 and PRBOA Resolution No. 23, Series of 2010.  Now, until the final resolution of this case, the Board of Accountancy is not implementing these resolutions.

Well, well, well, this is so  good, especially for all the CPAs out there practicing,  because until the case is pending, and until further notice, applicants for 2011 BOA accreditation, whether initial or renewal, will be required under R.A. 9298 and its implementing rules and regulations, to submit proof of participation in the review of internal quality measures adopted within the firm for the last three years in accordance with PSQC 1, Quality Control for Firms that Perform Audits and Reviews of Historical Financial Information and Other Assurance and Related Services Engagements and PSA 220, Quality Control for an Audit of Financial Statements.  These documentations will be subjected by the BOA or its authorized representatives to inspection and validation at the time and place designated by the BOA as one of the prerequisites for accreditation.

Inquiries may be made at the PRC Standards and Inspection Division. This is in lieu of the requirement of QAR enrolment under the QAR Program.

So there, the QAR…

For those who would like to know about the Board of Accountancy (BOA) accreditation requirements, here is the link that may help you.