KAKANIN

INTRODUCTION
On October 23, 2018, the audit team headed by Judith Castro alongside Alelie Habiling
and Frances Angelique de Guzman performed an operational audit on “KAKANIN”. The
business is operated by Elyssa Mallarer, Lesly Medoza, Jazmyn Bodoc, Jazmine Garcia, and
Alyssa Macatula. It started it’s operation on October 17, 2018 as a requirement for their subject.
The operations only resumed on this day, October 23, 2018. . The store offers variety of
kakanins that is on tub, like pichi-pichi, kutsinta and palitaw with yema.

SCOPE OF THE AUDIT

The audit procedures applied are limited to the actual cash count, inventory count,
observation and inquiry. The auditors are not present in the establishment throughout the entire
day which precludes them from giving absolute assurance with regards to the financial
statements.

FINDINGS
According to the information presented by the auditee, the auditors prepared the
statement of financial position and there is a discrepancy between the auditee’s total assets
specially on cash and total liabilities. Most of the products are already made as advance order
but they still have products that are made for retails.
The only information provided only by the group is the total of their sales and expenses
on October 23, 2018. This also precludes the auditors from the expression of an opinion
regarding the financial statements since the piecemeal opinion on the financial statements are
discouraged by the standard.

OPINION
An opinion cannot be expressed on the financial statements as a whole since the
complete set of financial statements was not prepared by the audit client.