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Mercado, Calderon, Jaravata & Co., Performed By: Alyssa Certified Public Accountants Date: 3/20/14 Questionnaire 1

The client's business activities have not significantly changed. The accounting policy for actuarial gains and losses and past service costs has changed upon adoption of a new standard. There have been no important contracts, lease agreements, or related party transactions outside the ordinary course of business. There are no substantial commitments, uncertainties, or litigation other than typical claims against delinquent accounts. Internal audit reports found only minor weaknesses. There have been no tax audits and the entity obtained new short-term loans, with machinery pledged as collateral for an existing long-term loan.

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Alyssa Marie Caguete
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45 views

Mercado, Calderon, Jaravata & Co., Performed By: Alyssa Certified Public Accountants Date: 3/20/14 Questionnaire 1

The client's business activities have not significantly changed. The accounting policy for actuarial gains and losses and past service costs has changed upon adoption of a new standard. There have been no important contracts, lease agreements, or related party transactions outside the ordinary course of business. There are no substantial commitments, uncertainties, or litigation other than typical claims against delinquent accounts. Internal audit reports found only minor weaknesses. There have been no tax audits and the entity obtained new short-term loans, with machinery pledged as collateral for an existing long-term loan.

Uploaded by

Alyssa Marie Caguete
Copyright
© © All Rights Reserved
Available Formats
Download as DOC, PDF, TXT or read online on Scribd
You are on page 1/ 2

MERCADO, CALDERON, JARAVATA & CO.

,
Performed by: Alyssa
CERTIFIED PUBLIC ACCOUNTANTS
Questionnaire 1

Date: 3/20/14

Answer
a)

b)

c)

d)

e)

f)

g)

Have there been any significant


changes in the nature of the
clients business activities during
the interim period?
Have there been any changes in
accounting policies?

Has the company entered into any


important contract agreements,
outside the ordinary course of
business?
Has the company entered into, or
revised any important lease
agreements?
Have there been any significant
transactions with related parties?
If so, have they been adequately
accounted for and disclosed (if
necessary)?
Are there any substantial
commitments or uncertainties such
as litigations, claims, and other
contingent liabilities? (Where
applicable, refer to the prior yearend legal letter and discuss events
noted therein with the officer
responsible for such matters.)
Have periodic reports to
management from internal
auditors, division controllers, etc.,
disclosed any significant
weaknesses in internal control
structure or significant accounting

None.

Yes. Upon adoption of the


Revised PAS 19, the Company
changed its accounting policy
to recognize all actuarial gains
and losses in other
comprehensive income and all
past service costs in profit or
loss in the period they occur.
The presentation of the
statement of comprehensive
income was updated to reflect
these changes.
No.

No. Lease contracts are being


renewed automatically upon
the expiration of the lease
term.
No. related party transactions
for this year are also part of
the ordinary business
transactions.
There are no substantial
commitments or certainties as
of this year. Litigations
commenced by the Company
are mostly the claims against
delinquent accounts.
The reports are merely of
minor weaknesses which have
already been addressed by the
management.

MERCADO, CALDERON, JARAVATA & CO.,


Performed by: Alyssa
CERTIFIED PUBLIC ACCOUNTANTS
Questionnaire 1

h)

i)

j)
k)

l)
m)
n)

questions?
Have there been any income tax
audits or have ambit claims or
assessments in respect of previous
audits been received?
Has the entity enter into any new
borrowing agreements, or revised
any existing borrowing
agreements?
Have any cash funds been
restricted?
Have any been pledged or
encumbered?
Has the entity issued any share
capital?
Have there been any debenture or
similar transactions?
Are there any going concern
problems that create doubt over
the company or economic entitys
ability to continue trading?

Ms. Elizabeth T. Morales


Assistant Vice-President/Chief Accountant

Date: 3/20/14

None.

Yes. New loans are mostly


short-term.
No.
Mitsubishi machinery is
pledged as collateral to secure
the long term loan.
No. only stock dividend.
None.
None.

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