ENGAGEMENT TIMELINE FOR ACCOUNTING PROCESS AND TAX REVIEW

FOR SOON POH TECHNOLOGIES, INC.

Estimated no. of days Performed Estimated Actual

to complete Action By Purpose Completion Completion
Date Date
1 Obtain preliminary documents and ELH, Liza, Moda,
1 schedules Ana To prepare data for examination
1 2 Draft audit timeline ELH

1 3 Agree on timeline ELH/JL

4 Signing of Engagement Letters by Need to have official agreement for managed

1 Soon Poh Management JL audit
5 Examine one project/contract with
3 Client ELH To determine taxability
3 6 Examine another sample projects ELH To determine taxability
7 Gather documents and information Verify that the data is available for every period
2 regarding actual taxes filed to BIR Liza, Moda within time frame in review
8 Reviews transactions and identify
1 questions
3 9 Examine Accounts Receivables ELH, Liza
10 Gather controllable forms and Establish present existence of necessary
1 documents ELH, Liza controls and checks
11 Verify that no period had unusual level of
2 Analyze month to month taxes Liza, Moda activity that may warrant further scrutiny
12 Identify vendors needing to be separately
Vouching suppliers/disbursement examined or to determine materiality of
3 transactions Liza, Ana particular vendors
13 Search for revenue issues that needs to be
2 Walk Through the Revenue Process ELH, Moda, Ana checked
14 Identify costs that should be taken up for
2 Walk Through the Cost of Sales ELH, Moda, Ana accrual or for WIP
15 Verify that no period had unusual level of
activity that may warrant a separate
3 Analyze month to month financials ELH, Liza examination.
2 16 Analyze month-month taxes ELH, Liza Identify accounts that have a tax exposure
17 Review the sample selected fr extraordinary
2 Evaluate tax filings ELH, Liza transaction and duplicate transactions
18 Walk through the Bank Recon Ensure complete collection of receipts and
2 Process Liza disbursements on record
 19 FS review & accounts of interest
4 selection, and account grouping ELH Revalidate transactions

20 Generate monthly Should-Be

3 Revenue & Cost Analysis Ana Select items to be sampled or detailed

21 Check availability of Risk

1 Management Strategies ELH, Liza To assess risks and exposures
22
2 Examine Asset Lapsing Schedules ELH, Liza To asses risks and exposures

23 Identify costs that should be taken up for

1 Examination of standard costs ELH, Randy accrual or for WIP

24 Design relevant formats to guide in To prescribe a simple but understandable and

Revenue recognition and costs take systematic process of taking up revenues and
2 up ELH, Moda, Ana costs
25
Determine Should-be tax filings ELH, Moda, Ana To support taxability conclusions
26
Analyze any gray areas and find
3 suggestion to minimize/zero them out ELH To support taxability conclusions
27 Calculate error rate based on Should
2 be tax due vs. Actual filings ELH To support taxability conclusions
28 Advise to revise tax filings as
2 necessary ELH, Moda To proactively minimize tax exposure
1 29 Submit progress report
30 Identify costs that should be taken up for
2 Examination of the payroll reports ELH, Liza, Moda accrual or for WIP
Examination of alpha list reports vs.
2 actual payrol ELH, Liza, Moda Identify errors in withholding taxes
31 Consultant and taxpayer meet to
discuss reports, recommendations ELH, JL, Liza,
1 and possible adjustments Moda To discuss issues and concerns
32 To determine any disagreements with the
3 Review and finalize results Both parties results
1 Sharing of Best Practices ELH For additional tips
33 Suggest priority policies and
2 procedures, prepare samples ELH For additional tips
34 Consultant and taxpayer meet to
discuss reports, recommendations
1 and possible adjustments Both parties Closure of the Engagement

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