Saint Louis College

City of San Fernando, La Union

College of Commerce, Secretarial, and Accountancy

December 01, 2016

Ms. Raissa Yabes

General Manager
Sebay
San Juan, La Union

Dear Maam:

This letter is to confirm our understanding of the terms and objectives of our engagement and
the nature and limitation of our responsibility.

The objective of or study is the expression of our opinion whether you have an efficient and
effective internal control implementation. Our engagement is limited to your internal control
implementation inclusive of your operating procedures in collection, disbursement and
purchasing and measures in safeguarding assets. We will not audit, review or otherwise werify
the accuracy and completeness of your financial statements or accounting records. Rather, we
will rely on your accuracy and completeness of documents and information you provide or make
available to us. Accordingly, our engagement cannot be relied upon to disclose errors, fraud, or
illegal acts that exist. Because of inherent limitations of any accounting and internal control
system, there is an unavoidable risk that fraud or errors may remain undiscovered.

We remind that you are responsible for adopting sound accounting policies for maintaining an
adequate and efficient accounting system, for safeguarding assets, for authorizing transactions,
for retaining supporting documents for those transactions, and for devising a system of internal
control.

We look forward to full cooperation with your staff and we trust that they will make available to
us whatever records, documentations and other information requested in connection with our
study. We assure that all information gathered will be handled with utmost confidentiality and
will only utilized for educational purposes only.

Please sign this letter to indicate that it is in accordance with your understanding of the
arrangement for our study.

Very respectfully yours,

Abaga, Jolina Grace G.

de Austria, Via Samantha B.

Abobo, Danah Mae P.

Lobingco, Kimberly C.

Costales, Daphne Maureen B.

Acknowledge on behalf of Sebay of San Juan, La Union.

Ms. Raissa Yabes

General Manager
December 01, 2016