August 8, 2018

MS. JAQUELYN UMAR

Person-in-Charge
Build Me Up Hardware & Construction Supply
Palo, Leyte, Philippines

Ma’am:

This letter confirms our understanding of the terms and objectives of our engagement
and the nature and limitations of the services that we will provide. Our engagement will be
conducted in accordance with the Philippine Standards on Auditing applicable to agreed-upon
procedures and guided by Code of Professional Ethics for CPA.
We have agreed to perform the following procedures and report to you the factual
findings resulting from our work.
It is not easy to remain competitive and profitable in the market. It requires more than
just being able to organize a workforce, there are also other areas that are needed to be
considered. This type of engagement will help the business to survive in the competitive market
and be profitable at the same time. Our aim is to help the business in improving their operating
performances through analysis of certain existing organizational problem and the development
of plans for future improvements. Moreover, this engagement will include an assessment
whether recommendations from the previous engagement have been implemented.
We ought to observe the daily operations of the business and identify if the controls
have been properly implemented. We would also like to collect and organize data to define
some issues, opportunities or problems that the business might encounter. We will identify
alternative courses of actions and solutions to the issues and problems identified in your
business and develop some recommendations to their issues faced. As consultants, knowing
how and when to make economic decisions is not always easy but we do understand what it
takes to help every business succeed. Being able to leverage this expertise when making
important decisions can help your business in ensuring that marketability is dominated and
progress is constant.
The procedures that we will perform are solely to assist you in improving your business
particularly on its operations. Our report is not to be used for any other purpose and is solely
for your information. Moreover, this engagement will not constitute an audit or a review made
in accordance with Philippine Standards on Auditing and, consequently, no assurance will be
expressed.
We look forward to full cooperation with your staff and we trust that they will make
available to us the necessary records, documentations and other information requested in
connection with our engagement.
The engagement team gives you the assurance that we will not be collecting any
monetary amount, favours in whatever form or manner in consideration for this engagement.
This is just purely to help your business improve and to carry on our responsibilities and
requirements for our course, Management Consultancy. Any penny extended shall be deemed
jeopardy and compromise to the knowledge we gained in the said course.
We will take reasonable precautions to ensure that your confidential information is not
disclosed to any third party. We will not be responsible for the information: (a) already known
at the time of disclosure; (b) already available to the public; or (c) available from third parties
without any non-disclosure obligation to the discloser.
Please sign and return the attached copy of this letter to indicate that it is in accordance
with your understanding of the terms of the engagement including the specific procedures
which we have agreed will be performed.

Acknowledged on behalf of:

JEM CONSULTING FIRM

By: ____________________________
Name: ____________________________
Position: _____________________________
Date: _____________________________

Accepted and agreed on behalf of:

BUILD ME UP HARDWARE & CONSTRUCTION SUPPLY

By: ____________________________
Name: ____________________________
Position: _____________________________
Date: ____________________________