You are on page 1of 2


To the Board of Directors and Stockholders

Manlangit Corporation
We have audited the accompanying sheets of Manlangit Corporation as of
December 31, 2012 and December 31, 2011, and the related statements of income
and retained earnings for the years then ended. These financial statements are the
responsibility of the Companys management. Our responsibility is to express an
opinion based on our audits.
We conducted our audits in accordance with auditing standards generally
accepted in the Philippines. Those standards require that we plan and perform the
audit to obtain reasonable assurance as to whether the financial statements are
free of material misstatement. An audit includes examining, on a test basis,
evidence supporting the amounts and disclosures in the financial statements. An
audit also includes assessing the accounting principles used and significant
estimates made by management, as well as evaluating the overall financial
statement presentation. We believe that our audits provide a reasonable basis for
our opinions.
The corporation declined to disclose that the agreement executed in
conjunction with the issuance of the debentures of January 31, 2011, for the
purpose of financing expansion plant facilities, restricts the payment of future cash
dividends to earnings after December 31, 2011.
The corporation declined to present statement of cash flows for the years
ended December 31, 2012and December 31, 2011. Presentation of such statements
summarizing the corporations cash flows from operating, investing, financing
activities is required by the Financial Accounting Standards Board.
In our opinion, except for the omission of the debenture information
discussed in the third paragraph and except for the omission of the statements of
cash flows that result in an incomplete presentation as explained in the fourth
paragraph, the financial statements referred to above present fairly in all material
respects, the financial position of Manlangit Corporation as of December 31, 2012
and 2011, and the results of its operations for the years then ended in conformity
with accounting principles generally accepted in the Philippines.
As discussed in the note to the financial statements, the corporation changed
its method of accounting for long term construction contracts.
As discussed in the note to the financial statements, the corporation is the
defendant in a lawsuit. The ultimate outcome of the lawsuit cannot presently be
determined, and no provision for any liability that may result has been made in the
financial statements.

Yap, Pardias, Trestiza & Moyo, CPA

(Date of the Auditors Report)
The only item of other information that is not part of the above report is the
auditors failure to confirm accounts receivable. Such procedures are required
unless circumstances indicate that they are not necessary. In such cases the
auditors can use alternate procedures to obtain satisfaction as to the validity of the
accounts. If alternate procedures are performed, the auditors need not refer to the
omission of the normal procedures in the report.