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Pinoy-Magas Dessert Business Overview

The document summarizes information about Pinoy-Magas, a partnership that sells desserts including leche flan, maja blanca, and cookies. It provides details on the products and prices, lists the 10 partners, and outlines the company's audit planning including materiality estimates between Php 231.50 to Php 420.78, key audit dates, and procedures to obtain an understanding of the client.

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Christopher M. Ungria
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190 views3 pages

Pinoy-Magas Dessert Business Overview

The document summarizes information about Pinoy-Magas, a partnership that sells desserts including leche flan, maja blanca, and cookies. It provides details on the products and prices, lists the 10 partners, and outlines the company's audit planning including materiality estimates between Php 231.50 to Php 420.78, key audit dates, and procedures to obtain an understanding of the client.

Uploaded by

Christopher M. Ungria
Copyright
© Attribution Non-Commercial (BY-NC)
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd

Nature of Operations and Business Process Pinoy-Magas sells leche flan, maja blanca, cookies, sagot gulaman (desserts)

to customers. The companys primary competitive strategy is to improve the quality and services in every aspect of their operation. The company offers foods that has nutrients at an affordable price. The market for desserts is extremely competitive. The Pinoy- Magas Company is established as a manufacturing enterprise selling various products namely:

Products Leche Flan Medium Regular Maja Blanca Medium Regular Cookies (per piece) Banana Chocolate Sagot Gulaman Php 50.00 Php 15.00 Php 45.00 Php 15.00 Php 5.00 Php 5.00 Php 10.00

Prices

Type of Organization The enterprise is set-up as a partnership comprising ten members per articles of partnership. Each person is prescribed to contribute cash as a capital of the partnership. Every partner is mandated to contribute cash as capital of the partnership of Php 300.00 equally. The organization is composed of the following: Dizon Balbiran Millette Claveria Krizzel Sajonas Phoebe Louis Eco Ma. Fatima Soriano Ma. Danica Lynda Tenorio Nerissa Joy Fernandez

Joshrich Yvette Veronia Jan Henry Mangapot Emmanuel Ison

Planning Materiality We believe that operating results are the most appropriate basis for estimating planning materiality as described below: Comparison of Basis
Financial Statement Base Sales Total Assets Pre-tax Net Income March 5, 2013 Php 2315.00 4207.79 1271.36

Computation of Planning Materiality Base Sales Total Assets Php Amount 2315.00 4207.79 Percentage 1% 1% 10% Materiality Estimates 231.50 420.78 127.14

Pre-tax Net Income 1271.36

The range for planning materiality is from Php 420.78 to Php 231.50 based on the companys steady growth in sales and earnings. We have selected Php 350.00 as a reasonable materiality amount for planning purposes.

Planning Meetings Based on discussions with Mr. Balbiran the following are tentative dates of importance for the audit: Day 1 A. Agreeing the terms of Engagement B. Pre-Engagement Conference C. Obtain an Understanding of the Entity D. Develop Overall Audit Startegy

E. Develop Detailed Audit Plan Day 2-5 Day 6-7 Day 8-9 Day 10 Substantive Testing Completing the Audit Reporting Exit Conference with the Client

Measurement and Review of Financial Performance Inventory Net income Sales by type of product

Procedures to Obtain an Understanding of the Client and Its Environment The following procedures were performed by the audit team to obtain understanding of the client and its environment: Review of Business Plan Inquiries of Management Review of Articles of Partnership

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